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
RAB Report: Radio Shows Double-Digit Growth In Digital Revenue For Q3
The Week In Review: 11/17-11/21
Jaysson Reno Named VP, Sales For KGO-AM, KSFO-AM
Kassof Research: CHR P1's: Excited & Social
In Brief - November 21, 2014
November 20, 2014
Cumulus Promotes Jeff Davis To National Director Of Stratus Music Scheduling
Mike Fredrick Named Hubbard Radio Cincinnati VP/Market Manager
Hubbard Radio Announces New Division, 2060 Digital, LLC
Kassof Research: Christian Radio P1’s: Mission Accomplished
In Brief - November 20, 2014
November 19, 2014
Musicians On Call Raises $700,000 At 15th Anniversary Celebration
iStreamMEDIA Adds Christopher Cottrill As VP/Music Content, Programming
Jordan Blaugrund Promoted To VP, Digital Marketing, RCA Records
DeVito/Verdi Retained To Drive Awareness Of NextRadio App
Kassof Research: Rock P1’s: Too Cool to Care?
In Brief - November 19, 2014
November 18, 2014
100.3 The Beat Launches In St. Louis
MADE Music Announces Partnership With Vevo
Kassof Research: Urban P1’s: Into It!
Southern California Radio Roars Back In October
In Brief - November 18, 2014
November 17, 2014
Vevo Announces Leadership Transition
BMG Acquires Vagrant Records
Republic Records Names Delmar Powell Director of Urban A&R
Gordon Smith, NAB To Be Honored By Broadcasters Foundation Of America
Kassof Research: News/Talk P1's: It's Not About Happy
Music News
Iggy Azalea, J. Lo To Team Up on AMAs
The Week In Review: 11/17-11/21
Quick Hits: Saturday Night Live, Billboard Touring Awards, YouTube Music Awards, Arcade Fire
Quick Hits: One Direction, Taylor Swift, Young The Giant, Guns N' Roses, Jimmy Ruffin
Taylor Swift's 1989 Remains At #1
Quick Hits: U2, Katy Perry, Paramore, Lana Del Rey, The Voice
Foo Fighters Announce Major 2015 North American Tour
Ed Sheeran Launches "Thinking Out Loud"
Quick Hits: American Music Awards, New Now Next Awards / Jessie J, Smashing Pumpkins, Prince Royce, Marilyn Manson, The Decemberists, Bonnaroo, James Blunt
U2 Postpones Tonight Show Residency
Quick Hits: AC/DC, J. Cole, Giorgio Moroder, alt-J, Lollapalooza South America
Kid Rock Gearing Up For First Kiss
The Week In Review: 11/10-11/14
Quick Hits: Paramore, AC/DC, Ryan Seacrest‘s New Year’s Rockin’ Eve
Quick Hits: One Direction, Juvenile, Randy Jackson, MTV Awards shows
FMQB NOW

Jon Zellner
SVPP, iHeartMedia

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!