eMarketer reports that spending for online advertising has surpassed ad dollars spent on radio advertising for the first time in 2007, with online marketing reaching $21.7 billion while radio reached $20.4 billion.
This would indicate the dominance of online marketing, and make some speculate that radio is a dying part of our culture. eMarketer says this isn’t true, and that online marketing isn’t growing at the expense of radio marketing. The growth rate for ad dollars spent on radio is speculated as slowing to a crawl at 1.5%, but should continue to increase through 2011 nonetheless.
The takeaway here is that radio will need to innovate in order to retain and increase the amount of advertising dollars spent on the industry, similar to what other traditional media mediums have needed to do. eMarketer suggests Internet and satellite radio as options for capturing more ad dollars, though there are reasons that would indicate even this as a doubtful option, including the increasing royalties that niche webcasters face, as well as the decline of satellite radio subscriptions.
HD radio, podcasting, and mobile devices are also named as potential enhancers by eMarketer, suggesting that the radio industry take advantage of new media platforms. The last eMarketer report we mentioned noted the need for better online video ads.
No comments:
Post a Comment