After a tough 2011, Borrell predicts growth for local radio's online ad revenue

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Issue Date: 
Apr 3 2012 - 12:05pm

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Borrell Associates says "pureplay" Internet radio generated $206.3 million in streaming audio advertising in 2011, significantly topping broadcasters' $67.4 million. And while Borrell Associates’ new Benchmarking Local Online Media: 2011 Revenue Survey predicts radio will double its streaming audio revenue in 2012, it'll still be only half of what "only-online" radio does.

Borrell says streaming audio ads represented 22% ($67.4 million) of broadcasters’ 2011 online revenue. 

Local stations didn't have a great 2011 online. While the online advertising market grew overall, local radio's share of the pool didn't keep up. While the rest of the online media industry grew 20.6%, says Borrell, radio grew only 6.1%, giving them less than 2% of 2011's $16.4 billion total.

That said, Borrell is looking for radio to turn it around, with a nearly $410 million 2012 in local online ad sales, for a 35% increase over 2011.

(See Borrell's predictions from November here. We also recently reported on BIA/Kelsey's 2011 local online ad revenue recap here.)

Borrell Associates CEO Gordon Borrell will both participate in the "Charting Digital Audio Ad Dollars" panel, and present a "POV" (see story in today's issue) at our upcoming RAIN Summit West in Las Vegas (more here). Read more on the Borrell study here.

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