eMarketer: Online Advertising Will Surpass Radio Spend by Year End
Radio has lagged behind both television and newspapers in adapting to the digital world, and this year is a watershed: For the first time, online advertising will surpass radio advertising spending in the U.S.
But this doesn't signal the death of the radio, according to eMarketer's report, "Radio Trends: On Air and Online." There are many synergies between radio and the Internet and, for the most part, they complement rather than compete with each other.
eMarketer expects U.S. radio advertising spending to grow 1.5 percent during 2007 to $20.5 billion. Online advertsing overall is expected to rise to $21.7 billion during the year.
Although the forecasted growth rate is hardly spectacular between 2006 and 2011, an additional $2.7 billion will be spent on radio advertising. Radio station Web sites and in-stream Internet audio advertising will be the principal 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," Ben Macklin, senior analyst and author of the report, said in a recent statement. "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."