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Radio, TV Station Revenue to Plunge 15% in ‘09: SNL Kagan

Ad revenues for radio will drop 15% in 2009, according to SNL Kagan’s updated Radio/TV Station Annual Outlook. Spot TV is expected to fall 15.7%

Markets in Michigan will suffer the most, due to the auto industry crisis. Radio will fall 16.3% and TV station revenue will slipe 17.7% for the year in those markets, writes Adweek. A five-year forecast for Detroit shows radio at -2.9%.

Washington, D.C., will do better than other markets, with flat revenue growth over the next five years, as will San Diego.

Things look slightly better in 2010, though declines for radio and local TV will continue to be about 2% for the next five years, according to the report (via paidContent).

BIA Advisory Services is calling for a more modest, but still steep, 11% drop in radio revenue in the top 50 markets in 2009, while Wachovia analyst Marci Ryvicker is predicting a 13% decline in radio revenues for the year.

Broadcasters can hope to survive the crisis in their industries by creating viable digital businesses and looking to other revenue streams beyond traditional advertising.  “If broadcasters have an advantage over internet companies, it is their reach within local communities, and their financial success will depend on how they work to meet the needs of the local market.”