SNL Kagan Sees Bright Future for Radio Station Online Revenue Growth

SNL Kagan Sees Bright Future for Radio Station Online Revenue Growth

To offset traditional ad revenue declines, radio broadcasters increasingly turn to online streaming and mobile apps.

Monterey, CA (Vocus) November 2, 2009 -- According to updated projections from SNL Kagan (http://www.snlkagan.com/), radio online revenues are expected to grow by double digits in 2009 to $441 million by year-end, up 12% from $394 million annually in 2008.

Looking forward, SNL Kagan projects an annual online revenue growth rate of 20% in 2010 to $530 million. As the market matures, growth is expected to level off through 2013, rising to $827 million, or 4.7%, of total radio revenues by the end of the five-year period. That compares to 2.0% in 2008 and a projected 2.7% of total radio revenues in 2009.

“In the past, radio broadcasters seemed resistant to embrace new technologies,” said SNL Kagan analyst Justin Nielson, “but with the decline of traditional ad spending, radio stations have turned to online initiatives to grow top-line revenues, improving their Web sites and embracing online streaming and mobile apps to drive their local base to their multiple platforms. With total radio revenue only expected to post modest growth over the next five years, it has become increasingly vital for stations to monetize digital innovations.”

These projections were published in SNL Kagan’s Broadcast Investor feature and are available via the SNL Kagan Unlimited Information Service. For more information on SNL Kagan Unlimited, contact Sales at 866.296.3743; SNLKaganSales@snl.com.

About SNL Kagan:

SNL Kagan, a division of SNL Financial LC, is a comprehensive resource for financial intelligence in the media and communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing and new media industries. The SNL Kagan suite of products integrates breaking news, comprehensive data and expert analysis into an electronic database available online and updated around the clock. For more information, visit www.snlkagan.com.

About Kagan Media Appraisals:

Kagan Media Appraisals, the consulting arm of SNL Kagan, offers custom studies, white papers, briefings, business plans, research reports and appraisals from SNL Kagan’s team of expert analysts. KMA is recognized industry-wide for actionable advisories, expert opinions, best practices, regulatory assessments and market data. Contact KaganConsulting (at) snl.com or 831.624.1536 for more information.

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Contact Information Monica Jenkins

SNL Financial

http://www.snlkagan.com

434.951.6951