Radio On-Air Ad Sales May Not Grow Much Soon, BIA Says, Advising HD Radio Expansion

Total U.S. radio station advertising revenue fell 0.2 percent last year to $13.87 billion as online sales gained 9.7 percent and terrestrial fell 2 percent, reported BIA/Kelsey Thursday. "Although local radio stations are still important players in their local markets, we do not expect the over-the-air advertising revenue of U.S. radio stations to grow much this year or in the near future," said Chief Economist Mark Fratrik. "There is an unprecedented number of new audio entertainment and information sources and new advertising platforms competing with radio, including many that are unregulated." On-air annual revenue growth for radio stations may stay below 1 percent "for some time," Fratrik emailed us. "For the next five years we do not see faster growth." Mergers and acquisitions last year were the most since 2011, with 752 stations sold for $3.32 billion, the research firm said. Fratrik said broadcasters can further expand their HD Radio efforts, given carmakers are including the receivers in new autos, and noted increasing use of FM translators for rebroadcasting AM signals (see 1804050047).