Radio Revenue on the Rise

On-air radio revenue is poised to end the year at $13.9 billion, an increase of 4.4 percent. Factor in another $459.3 million from digital and online, and radio's 2010 tally is expected to grow 5.1 percent to $14.4 billion, according to BIA/Kelsey's revised forecast.

BIA/Kelsey adjusted up slightly its May forecast based on ad spending increases in various radio markets. Stations in the top-10 markets are expected to average a 6.26 percent rise in advertising. Especially strong are San Francisco and Philadelphia, which will each be up 8 percent on the strength of spending by national advertisers.

Markets 11 to 25 will rise an average of just over 4 percent, while smaller regions will increases between 2.7 and 3.7 percent.

With the forecast, the researcher advised some caution. "We're glad to see positive growth in most U.S. radio markets but still feel there remains enough uncertainty in the country's overall economic performance to tread carefully stepping into the second half of the year," said Mark Fratrik, vp of BIA/Kelsey. "Radio's performance this year will largely be driven by the success of the top markets; however, its impact will resonate to smaller ones.

Slower growth is forecast for 2011, with total radio revenue up 2.7 percent to $14.8 billion.