Radio Revenue Estimate for 2010: 5% Increase

Increase Over Last Year With Some Markets as Much as 9%

On the heels of strong political battles nationwide, increased automotive advertising and an improving economy, the radio industry has experienced a better year than expected and will end 2010 with over-the-air revenues of $14 billion, a 5 percent increase over 2009, according to BIA/Kelsey, adviser to companies in the local media space.

In the fourth edition of BIA/Kelsey's quarterly "Investing In Radio Market Report," the company also cites more than 13 markets that will have 9 percent or greater revenue increases this year, including five top markets: Boston, Philadelphia, Denver, Miami and Tampa.

Fratrik pointed to the industry's innovative use of FM translators to increase its presence in some markets.

The "Investing In Radio© Market Report" includes in its comprehensive market-to-market comparisons more than 400 AM radio stations across the country that are using FM translators to improve their nighttime coverage areas. Huntsville, Alabama, for example, currently has five AM stations using translators to rebroadcast on another frequency to cover areas not adequately served by their main signal. In addition, FM HD multicast stations are rebroadcasting in analog to expand their audiences.

"The radio industry has proven it remains an important component of the advertising mix by reaching local audiences in all demographic ranges," said Mark Fratrik, Ph.D., vice president, BIA/Kelsey. "We might be a long way from pre-recession over-the-air revenue numbers, but broadcasters are supplementing those revenues by taking steps to change the landscape by attracting advertisers through online and mobile and also by extending their signals to attract new listeners."