Radio: Beyond Seven Percent
A look at the developments that are contributing to radio's growth
Radio Direct Response
For what seems like an eternity, radio's share of the total advertising pie has been pretty much cemented in at approximately seven percent. In today's marketplace, this translates to $13.5 billion, not a shabby number by any means. Nonetheless, radio industry executives have long maintained that the seven percent figure sells the medium short; that it is not commensurate with radio's audience delivery and consumer impact.
Radio is poised to finally move beyond the seven percent plateau. Not by leaps and bounds, but profitably nonetheless, since even a one percentage point market share increase would mean an additional $1 .875 billion in revenues. There are many dynamic developments occurring in the radio marketplace, some of which will contribute considerably to radio's growth, others less significantly. Following is a rundown of some of these developments and trends, categorized by their likely impact on radio's advertising market share: