MarketingProfs

MediaBuyerPlanner: Growth in radio advertising in mid-size to small markets should help boost revenue in 2007 by 2.2 percent for the full year.
According to a new report from BIAfn, 2006 was a mediocre year for radio, with just a 0.4 percent growth over 2005, writes MediaPost. Growth of Hispanic radio, the slowdown in satellite radio subscriptions and the leveling off of radio ad inventory will contribute to the growth.
Thanks to the buying and selling of radio stations, overall radio transactions exceeded a volume of $22 billion in 2006, for the first time since 2000. This is partly due to the planned privatization of Clear Channel Radio (should it happen), but BIA vp Mark Fratric said that the number is proof that radio remains an attractive investment.
A new prediction from ZenithOptimedia has internet spending to outperform radio in 2008, a year earlier than first projected.
In order for radio to truly grow, says Fratric, “it’s going to take other things related to the radio stations, whether it’s internet, podcasting or events.” He points out that events are particularly lucrative, and that stations can realize tremendous revenues from? radio-related events.
Related story:

• Prediction: Radio Ad Spend to Drop below Internet in ‘08