Borrell Study Says Radio Is "Treading Water"
January 8, 2014

Borrell Associates has released an extensive new study, titled "The Future of Legacy Media:  With 5 Years of Digital Disruption Ahead, What Happens Next?" The chapter on radio is titled "treading water," though the study has a number of positive takeaways.

First off, Borrell says 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." Citing Arbitron (now Nielsen Audio) data, 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. At the same time, however, radio ad spending has dropped by almost a third." Borrell says that this decline can mostly be attributed to the recession, though the data started trending downward in 2006, and current forecasts "show only minimal gains during the next five years."

The study cites "the burgeoning popularity of online radio, especially among younger listeners," as a factor in radio ad sales falling. 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. Pandora singlehandedly controls more than four-fifths of online radio listenership. Its ad revenue has doubled in the past two years, expected to reach a half-billion dollars by the end of 2013. It is now half the size of radio giant Cumulus, roughly the same size as Cox Radio and Radio One, and twice the size of Beasley, Emmis and Salem Communications."

Borrell predicts that "traditional radio ad spending will continue to tread water, remaining largely unchanged while growth moves online – especially among national advertisers. Detroit is already equipping some new cars with Pandora service, so even that industry sinecure may have been breached. Losses – where they occur – will be most felt in the larger metros, while suburban and rural areas will still depend on the local flavor of stations that have been good friends to their fathers and grandfathers."

However, the study concludes that radio isn't going anywhere as "Old habits die hard, and radio serves a useful purpose. Ask big-city commuters, and anyone whose community suffers a major weather tragedy, like Hurricane Sandy."




 
Breaking News
Ipsos Research Study Highlights Continued Strength Of AM/FM Radio In Cars
KYSR Names Andrew Harms APD/MD/Afternoon Host
Chad Lopez Appointed VP/Market Manager For Cumulus New York
iHeartMedia Names Colleen Valkoun Market President For Madison And Milwaukee
Cumulus Ups Donna Baker To Midwest RVP, Peter Bowen Named Chicago VP/MM
Triton Digital Partners With Edison Research To Deliver Podcast Measurement Technology
Cumulus Taps Jon Lurie As PD At KMGA
In Brief - March 2, 2015
February 27, 2015
Epic Records Names Breyon Prescott Head Of Urban A&R
The Week In Review: 2/23-2/27
Westwood One Rolls Out National Expansion Of The Jonathon Brandmeier Show
In Brief - February 27, 2015
February 26, 2015
Mel Karmazin To Be Honored By The Broadcasters Foundation Of America
Cox Media Group Names Rachel Williamson Director/Digital Revenue Development
New Generation Radio Launches Virtual Jock
Benztown Teams With Vipology To Bring Cost-Effective Websites To Radio
In Brief - February 26, 2015
February 25, 2015
iHeartMedia Announces Executive Changes
NAB Statement On Introduction Of Local Radio Freedom Act In House, Senate
Report: Radio’s 2015 Digital Revenue Poised For Double-Digit Growth
Coleman Insights, Jacobs Media Explore The Great Pyramids Of Radio
Republic Records Names Patch Culbertson Director of A&R
In Brief - February 25, 2015
February 24, 2015
106.1 KISS FM Changes Name To 106.1 LAURA FM
In Brief - February 24, 2015
February 23, 2015
Music News
Madonna Unveils Rebel Heart Tour
Mumford & Sons Get Wilder On Third LP
Quick Hits: Kanye West, Stone Sour, Radio Disney Music Awards, Lollapalooza Berlin, Bestival
All Apologies From Kanye West
The Week In Review: 2/23-2/27
FMQB Retro-Active: Aerosmith's Joey Kramer Talks Donington DVD, The Beatles, and Rockin and Roastin Coffee
Quick Hits: Mumford & Sons, Madonna, Beale Street Music Festival, Tool
Ed Sheeran, Sam Smith Rule BRIT Awards
Quick Hits: Foo Fighters, Carly Rae Jepsen, The Airborne Toxic Event, Echosmith, Finding Neverland Album with John Legend & Rita Ora
Imagine Dragons Roar To Top Debut
Quick Hits: U2, Firefly Festival, Nico & Vinz, Lady Gaga, Three Days Grace, Free Press Summer Festival
Sam Smith Set For Another U.S. Road Trip
Quick Hits: One Direction, Lorde, Brandon Flowers, Redfoo, Fuji Rock Festival
Quick Hits: John Legend & Common / The Oscars, Ed Sheeran, In This Moment, Passion Pit, Kaaboo Del Mar Festival, Pixies
Kanye Talks New Album & More With Power 105.1's Breakfast Club
FMQB NOW

Rob Roberts
OM/Cumulus Atlanta

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!