Forecast: Online radio ad dollars to grow 8.6%....and more...

Modest growth are the watchwords for broadcast radio as it enters an era of unprecedented choice for consumers and advertisers. Over-the-air ad dollars are forecast to grow at a compound annual growth rate of 0.5% from 2014 through 2019, according to a new report from PwC. Online ad dollars for radio broadcasters will grow at a much faster 8.6% annual clip during the same period.

Bundling broadcast and satellite radio together, PwC reports total U.S. radio revenue grew 3.4% between 2013 and 2014, the fastest growth since the market dips of 2009 and 2010. What PwC calls "the reawakening of advertiser confidence" brought a 2.6% increase in radio ad revenue in 2014 while the smaller satellite and online radio sectors enjoyed higher growth rates of 9.4% and 12.4%, respectively. Radio growth has been slowing steadily due to competition from online audio alternatives like Pandora, and YouTube, the report says, and that continued disruption will see the rate of growth continue to slow every year until 2019. With a projected 1.8% compound annual growth rate, total radio revenue (including satellite radio) will reach $22.63 billion by 2019, with satellite accounting for 20% of the total, up from 17% in 2014. "Internet radio continues to eat away at radio advertising dollars and the radio audience," says Greg Boyer, PwC’s principle U.S. lead for entertainment. "Whenever there are more choices for consumers, the result will be a disruption in the traditional business models." To grow, radio needs to innovate, Boyer says. Radio needs

to innovate, Boyer says. Radio needs to ask, "How can we innovate around the customer experience and fortify the experience they have today," he says

 

WideOrbit integrates with NextRadio. Inserting interactive advertising and programming elements just got easier for stations running WideOrbit Automation for Radio. The latest release of the ad management software is fully integrated with TagStation, the Emmis-owned company that provides the backend for NextRadio broadcasts. WideOrbit says it’s the first media management platform to integrate with NextRadio. The two companies say the integration provides "a seamless technical experience" for enhancing ad campaigns, providing interactive programming and generating listener metrics and analytics. It also eliminates the need to implement middleware that can add setup and management costs for broadcasters.

Pot-branded station lights up Denver. First there was "K-High," now get ready for "Smokin 94.1." But Colorado’s latest weed-branded radio station is less pot talk and more of a musical lifestyle soundtrack. Promising "one hit after another," the classic rocker launched this week on translator K231BQ, licensed to Golden, CO and fed by KBUD (1550). A former sports talker under different call letters, KBUD was recently acquired by Marco Broadcasting Corporation. There’s no need to be subtle in Colorado, where recreational use of marijuana is legal. "Smokin 94.1" invites listeners to "wake and bake" with Bubba The Love Sponge in morning drive, followed by a lineup that includes Ed Blaze, Gary Ganja and Stoney Reynolds. In as press release, station owner Marc Paskin says Bubba is a natural fit for the station’s new format. "He loves weed, fast cars, hot girls, and rock music," Paskin says. Bubba says a number of his fans have moved to Colorado and his show has long advocated for the legalization of marijuana. "Rock music and smoking pot have historically gone together like peanut butter and jelly," the host says in a statement. "I can’t wait to fire it up in Denver."