U.S. Internet advertising spending is poised to overtake radio advertising for the first time, providing a reminder that broadcasters need to be more aggressive in their embrace of online opportunities.
U.S. radio ad spending is expected to inch up 1.5% in 2007, to $20.4 billion, short of online ad expenditures of $21.7 billion, which will be up 22% from last year, eMarketer senior analyst Ben Macklin said in a report.
Over the next several years, radio station Web sites and online audio advertising “will be the principal drivers for radio advertising growth,” Macklin said.
The radio industry did it to themselves. iPods and XM and all that only helped a little. Between consolidation, mediocre programming, and a general tolerance of horrible radio commercials, stations are reaping what they’ve sown. People are tuning out of terrestrial radio in droves.