Are radio’s leaders waking up?
First quarter revenues were flat again, further evidence that radio is stuck in neutral. Yes, digital revenue grew, but broadcast spot sales continued to erode. Digital’s growth was a hollow victory: Digital contributes a mere 3% of radio’s revenue. Broadcast spots contribute over 90%. If spot sales decline by a mere 1%, $140 Million in spots is wiped off the books. Given digital’s meager contribution, it has to increase 15% just to stay even, let alone jump-start sales. As we pointed out in our previous post, digital grew by 16% last year, but growth is on a downward trajectory. It is increasingly likely that digital sales growth won’t be able to make up for even modest declines in broadcast spot sales. What should broadcasters do?