Report: Traditional Radio Is 'Treading Water'

However, 'steady' could be okay, especially if traditional radio maximizes on-line opportunities.

'Treading Water' is the title of the chapter on Radio in a new report “The Future of Legacy Media” from Borrell Associates.

Borrell notes that "There’s no demand for vehicles without radios. As long as that’s the case – and as long as cars on the road have radios in their dashboards – AM and FM stations will be around."

The study notes that there’s been little fluctuation in the number of radio listeners in the past 13 years. It has drifted downward by less than 4 percent. Borrell says radio listening has declined from 124 minutes per day five years ago to 93 minutes per day today. And, it will decline to 82 minutes by 2018.

The study cites "the burgeoning popularity of online radio, especially among younger listeners.” Borrell says that "online radio penetration by services like Pandora and Apple reach almost a third of all adults under 30, and more than a quarter of all adults under 40. The market concentration has not been lost to advertisers.

Borrell predicts that "traditional radio ad spending will remain largely unchanged while growth moves online – especially among national advertisers.