Radio’s 2017 Revenue. Was It Up Or Down?

BIA/Kelsey is out with some new data that says radio’s over-the-air revenue declined 2% in 2017. However, the good news is radio’s digital revenue jumped 9.7%. That big jump in digital was not enough to keep radio above the flatline.

According to BIA, radio’s total 2017 revenue was $13.87 billion, a decrease of 0.2% from 2016. Unfortunately, the team at BIA is not very optimistic about the near future for radio’s over-the-air advertising revenue.

BIA Chief Economist Mark Fratrik says radio will see very little growth over the next several years. “Although local radio stations are still important players in their local markets, we do not expect the over-the-air advertising revenue of U.S. radio stations to grow much this year or in the near future. There is an unprecedented number of new audio entertainment and information sources and new advertising platforms competing with radio, including many that are unregulated. It’s an aggressive environment that competes for audiences with local radio.”

Radio is the fifth-highest-used platform by advertisers, according to BIA. Direct mail is first, followed by TV, newspaper, and mobile. Back in July, BIA reported that radio fell to 6th and online/interactive had moved into the top five. Online/interactive is not even mentioned in this new report. Back in July of 2017, BIA had also projected radio would come in at $15.6 billion, which is about $2 billion more than what this new report states. The new BIA report says, “Radio audiences are slowly decreasing with the increased number of audio entertainment and news alternatives, but many local radio stations still garner sizable audiences.”

In terms of transactions, BIA says volume was the highest since 2011, with 752 stations being sold at a value of $3.32 billion.

The new information can be found in two new reports just completed by BIA: The first quarter edition of BIA’s 2018 Investing In Radio Market Report, and The Market Assessment and Opportunities for Local Radio Report for 2018-2022. For more information on the reports (there is a $295 fee) GO HERE.