Poor corporate radio...spinning out of control because it just can't keep up with the times.

[quote=Radio and Records]

Radio ended 2008 with a 10% revenue decline to $16.5 billion. Factoring in off-air and network revenue, radio was down 9% to $19.5 billion, according to figures released Friday (Feb. 20) by the Radio Advertising Bureau.

It's the third consecutive year of negative growth for a medium that has struggled to regain its place in the media mix.

Sadly, the declines of 2008 may look like the good ol' days compared to several Wall Street forecasts, which put radio down 20% or more for first quarter, and down 13%or more for the year.

Bracing for one of the toughest ad markets in recent memory, radio groups, many of them over-leveraged, have cut costs and staffs down to the bare bones. As for inventory, it's a buyer's market, making it difficult for stations to hold to rate cards.

Off-air revenue continues to be a bright spot for the medium, growing 7% in 2008 to nearly $1.8 billion. The RAB is forecasting the segment to reach $2 billion in 2009.

Network also bucked the general trend, coming in flat for the year at $1.15 billion.

Like other media, radio advertising hit its lowest point in fourth quarter. Local tumbled 13% to $3.2 billion, while national plummeted 14% to $735 million. Network radio, which has outperformed all other radio segments with positive growth, dipped 4% in fourth quarter to $298 million. Even off-air advertising, including online revenue, only managed to eek out a 1% increase to $444 million.

Much of radio's revenue decline can be attributed to the medium's top ad categories. Automotive adspend, 15% of radio's total revenue and the medium's No. 1 ad category, declined 22% to $2.5 billion.

Spending among communications/cellular/public utilities companies, radio's second largest category, was flat at $1.7 billion.

Some categories actually increased spending, including political, grocery/convenience/liquor stores, professional services, insurance, and restaurants. Select retail categories (home improvement, department/discount stores and shopping centers) were flat.

http://www.radioandrecords.com/RRWebsite20/members/ShowHeadline.aspx?FormatId=0&ContentID=47098
[/quote]