Though still not a growth medium, ad revenue for local radio is expected to drop by just 2.5% in 2010, according to a new forecast from Magna.
Local radio will fall 2.5% from the $13.1 billion in ad revenue local radio pulled in 2009. Last year, local radio tanked by 20.9%, according to Magna (via Radio Ink).
Magna expects network and satellite radio to be up 2% in 2010, to $1.1 billion, followed by a 3% gain in 2011, to $1.2 billion.
Local radio, however, is expected to steepen its decline next year, falling another 10% in 2011.
Overall, Magna predicts that advertising revenue will be essentially flat in 2010 compared to last year, down just 0.1%, excluding the effects of the Olympics and local elections. Including Olympics and election spending, the U.S. advertising economy will rise 1.4%.
U.S. advertising fell 15.5% in 2009, Magna estimates.
The advertising recession hit radio and print media particularly hard, and some industry watchers have criticized radio for not embracing the digital medium quickly enough. Still, digital has been a bright spot for radio, according to the Radio Advertising Bureau, which said in November that, “Although there have been economic hurdles, stations supported and improved upon their brand ‘s online extensions – websites, online streaming, mobile applications – providing content and programming that addressed listeners’ demand s therefore providing advertisers with additional marketing options.”
