PwC: Radio to Sink by 4.7% CAG through 2013; Satellite Ad Revenue to Double

PricewaterhouseCoopers’ new Global Entertainment and Media Outlook 2009-2013 predicts that terrestrial radio will decline by a 4.7% compound annual rate, to $13.6 billion in 2013.

Radio advertising is expected to drop 14.2% this year to $14.8 billion, but will begin to turn around in 2010 and 2011; positive growth will once again be seen in 2012, writes Billboard.

Satellite radio will fare much better, with advertising expected to more than double, from $100 million in 2008 to $230 million in five years

Radio advertising will total $15 billion in 2013; the total radio industry will bring in $20 billion.

Station ad revenue dropped 7.8% in 2008, and will drop another 15% this year, if BIA Financial Network’s estimates are correct. The Wall Street Journal writes that the best-positioned broadcasters are those in smaller markets, where competition for ad dollars is less fierce. Average revenue at stations not in the top 50 fell 6.6% in 2008, compared to about 9% for stations in larger markets. BIA estimates that smaller stations will continue to outperform top 50 market stations through 2013.