A Borrell Associates report
predicts that U.S. radio’s total online ad revenue will grow 85% next year
, reaching $539.4 million. And for the first time, online audio advertising
will bring in more dollars for radio than on-site display ads, Borrell says.
Online audio ads were just 1.7% of total online spending this year. But that's forecast to more than double next year, to 3.2%. Given the shifting proportion of online listening towards pureplay webcasters (especially Pandora, see today's top story), while broadcasters can expect to bring in $159 million for the audio ads they stream in 2012, online-only radio should book $418 million (more than twice radio's take).
Of course, local broadcasters should have the advantage over pureplays when it comes to local online sales. And to take advantage of that, Borrell says the key will be mobile.
"While traditional local online ad spending will grow double-digits again next year," Inside Radio writes, "the real sizzle to this advertising steak is now found in mobile spending. Borrell Associates forecasts 88% of all local online advertising will viewed on tablets, smartphones or GPS-enabled laptops by 2016." Borrell predicts local mobile advertising will spike 66% in 2012 to $4.3 billion.
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