Radio has been behind television and newspapers in adjusting to the digital world. This year for the first time, online advertising will surpass radio advertising spending in the U.S.
Online Advertising To Pass Radio Advertising
This does not mean the death of radio, according to an eMarketer report “Radio Trends: On Air and Online.” For the most part radio and the Internet complement rather than compete with each other.
The report estimates that U.S. radio advertising spending will grow 1.5 percent during 2007 to reach $20.4 billion. Although the forecast growth rate is not strong between 2006 and 2011, an additional $2.5 billion will be spent on radio advertising. Radio station Web sites and in-stream Internet audio advertising will be the drivers of this growth.
Media such as the Internet, satellite radio, HD radio, podcasting and mobile devices are potential enhancers.
“While advertising spending is growing rapidly online, it is not necessarily at the expense of radio,” says Ben Macklin, senior analyst and author of the report.
“There seems to be no reason why this market cannot find a new lease on life and benefit from the growth in the online sector. Advertisers should not abandon radio in favor of the Web, but combine the two to take advantage of the unique attributes of each.”
