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SNL Kagan: Radio Must Embrace Digital or Face Harsh Reality

Unless radio makes an aggressive push into the digital space, double-digit growth is likely a thing of the past, according to SNL Kagan’s new Media Trends 2007 report on the media industry.

While radio will benefit from political spending in the next year, that will not be enough to keep the industry thriving, writes Radio Ink.

In 2006, radio received more than $70 million in political advertising; that figure could rise as high as $100 million in 2008. Total radio revenue could increase 3.5 percent in 2008 - an increase that would be the best performance since 2002.

Radio’s share of U.S. ad spending has slipped to 8.1 percent from 9.3 percent, while the internet’s share has grown to 5.9 percent from 4 percent.