Radio Sinks 9% in 2008; Automotive Plummets 40%

2008 radio revenue plunged 9% to $19.5 billion, according to the Radio Advertising Bureau. Local fell 10%, national fell 12%, and local and national combined for a 10% drop.

Network revenue was flat for the year, writes Radio Ink. Off-air revenue was up 7% to $1.8 billion.

In Q4, revenue slipped 11% from the same quarter the previous year. Local was down 13%, national was down 14% and local and national combined fell 13%. Network was down 4% in the quarter. Off-air, which includes internet radio, was up just 1% for the quarter.

Off-air revenue is on target to reach $2 billion in 2009. Some, like consultancy Deloitte, think 2009 could be a tipping point for internet radio - which could, in fact, be the savior that the medium so desperately needs.

Growth categories for the year included home improvement, which was up 49% in Q4. Lowe’s launched its adspend up 81% for the quarter, while competitor Home Depot increased spend by 17%.

Target’s adspend rocketed 164% in the fourth quarter, compared to the same quarter in 2007, bringing it to the top of the discount/department store category for the quarter. Grocery/ convenience stores were mostly flat for the year, but rose 4% in the fourth quarter.

As for automotive, virtually every advertiser in the category curtailed local and national spending to bring the quarter down 40% from the fourth quarter in 2007. Despite the slip, automotive remained the medium’s top spending category, with about 15% of total radio revenue.

Wachovia is predicting a 13% decline in radio revenues in 2009.