First quarter revenues were flat again, further evidence that radio is stuck in neutral. Yes, digital revenue grew, but broadcast spot sales continued to erode. Digital’s growth was a hollow victory: Digital contributes a mere 3% of radio’s revenue. Broadcast spots contribute over 90%. If spot sales decline by a mere 1%, $140 Million in spots is wiped off the books. Given digital’s meager contribution, it has to increase 15% just to stay even, let alone jump-start sales. As we pointed out in our previous post, digital grew by 16% last year, but growth is on a downward trajectory. It is increasingly likely that digital sales growth won’t be able to make up for even modest declines in broadcast spot sales. What should broadcasters do?
