Internet Radio Makes Waves

Internet Radio Makes Waves

The message coming from the radio industry is clear: Terrestrial radio is in trouble and things will get worse before they get better. Many of the country’s largest national broadcasters are on the verge of bankruptcy, and the Radio Advertising Bureau (RAB) announced that Q1 2009 was the industry’s worst quarter ever in terms of ad spending.

eMarketer foresees steep declines in ad revenues for the remainder of 2009 and into 2010. But marketers will transfer some of their ad budget online, where Internet radio stations are positioning themselves to take advantage of the shift in dollars. Even in this tough economy Internet radio is one of the fastest-growing online media categories. Attractive demographics and a connected audience will prove increasingly appealing to advertisers as they look for fresh channels to reach consumers.

Key Questions This Report Answers:

• What effect has the economy had on terrestrial radio?
• Who listens to radio online?
• What attracts listeners to online radio?
• How will satellite and HD Radio survive troubles in the auto industry?
• How will mobile applications affect radio?

The message coming from the radio industry is clear: Terrestrial radio is in trouble and things will get worse before they get better. Many of the country’s largest national broadcasters are on the verge of bankruptcy, and the Radio Advertising Bureau (RAB) announced that Q1 2009 was the industry’s worst quarter ever in terms of ad spending. 
 

EXECUTIVE SUMMARY
- US Terrestrial Radio Advertising Spending, 2008-2010 (billions and % change)

KEY QUESTIONS

THE EMARKETER VIEW

RADIO AD REVENUES

TERRESTRIAL RADIO
- US Terrestrial Radio Advertising Spending, 2008-2010 (billions and % change)
- Comparative Estimates: US Terrestrial Radio Advertising Spending, 2008-2010 (billions)
- Comparative Estimates: US Terrestrial Radio Advertising Spending Growth, 2008-2010 (% change)
- US Radio Advertising Revenues, by Segment, Q1 2009 (millions and % change*)
- US Advertising Spending, by Media, 2008-2010 (billions)
- US Advertising Spending Growth, by Media, 2008-2010 (% change)
- US Advertising Spending Share, by Media, 2006-2011 (% of total)

SATELLITE AND INTERNET RADIO
- US Advertising Spending Growth, by Media, 2006-2011 (% change)
- US Advertising Spending, by Media, 2006-2011 (millions)
- US Online Advertising Spending Growth, by Format, 2006-2011 (% change)
- US Online Advertising Spending, by Format, 2006-2011 (millions)

RADIO AND THE ECONOMY
- US Advertising Spending Share, by Media and Industry, 2007 (% of total)

RADIO LISTENING TRENDS
- Share of Time Spent per Day with Select Media Among US Consumers, 2009 (% of total)
- US Weekly* Radio Audience and Reach, June 2005-June 2009
- Favorite Method by Which US Adult Consumers Listen to Radio, September 2008 (% of respondents)
- US Satellite Radio Subscribers, 2008-2012 (millions)
- Satellite Radio Revenues in North America, by Country, 2009 & 2013 (millions)
- Awareness* and Interest** in HD Radio Among US Consumers, January 2009 (% of respondents)
- Conditions Under Which US Adult Consumers Would Listen to More Radio and Internet Radio, September 2008 (% of respondents)
- Main Reason US Internet Radio Listeners Listen to Internet Radio, January 2009 (% of respondents)
- US Internet Radio Listeners, 2000-2009 (% of respondents)
- US Adult Internet Radio Listeners, by Frequency, September 2008 (% of respondents)
- Likelihood of US Adult Consumers Listening to Internet Radio in the Future, September 2008 (% of respondents)
- US Teen Internet Users Who Listen to Internet Radio, 2007 & 2008 (% of respondents)
- US Broadband and Dial-Up Internet Users, 2008-2013 (millions)
- US Mobile Internet Users and Penetration, 2008-2013 (millions and % of mobile phone subscribers)

LISTENER DEMOGRAPHICS

ONLINE LISTENERS
- Demographic Profile of US Internet Radio Listeners, January 2009 (% of respondents)
- Demographic Profile of US Internet Radio Listeners vs. All Consumers, January 2009 (% of respondents)
- Select Online Activities of US Internet Radio Listeners While Listening to Internet Radio, January 2009 (% of respondents)
- Sources Used by US Internet Radio Listeners to Learn About Internet Radio Stations*, January 2009 (% of respondents)
- Consumer Electronics Devices/Platforms Used by US Consumers, January 2009 (% of respondents)

ONLINE AND MOBILE PLATFORMS

- Spotlight: Pandora
- Spotlight: Clear Channel
- Spotlight: Sirius XM

CONCLUSION