Radio America: advertising and revenues

Pavel Prikhodko, Ph.D. Machine Learning

According to Pew Research Center, more than 90 percent of Americans aged 12 and older listened AM/FM radio in the week before they were surveyed in 2014. One of the most popular broadcast formats for American radio listeners remains news/talk/information. This format generated about 11 percent of adult listeners in 2014. The number of all-news radio stations declined slightly in 2014, dropping to a total of 31 stations according to Nielsen Media Research data. About 160 million American internet users listened to online radio at least once per month in 2014. The forecast expects this number to grow over the next few years, reaching 176.6 million digital listeners in 2016 and to 181.2 million in 2017.

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In 2014, the estimated revenue of radio broadcasters in the United States approximated to $18.13 billion; this rate is larger than the previous year’s ($18.23 billion in 2013). In the years before this, American radio broadcasters generated less revenue than in 2014: $18 billion in 2012, $17.27 billion in 2011, $16.95 billion in 2010 and $15.92 billion in 2009. Meanwhile, the highest revenue was recorded in 2006 (about $18.43 billion).

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If we look at the expenses of radio broadcasters in the U.S., we see that radio broadcasting companies spent an estimated $14.06 billion in 2014.

Radio advertising is a huge industry and one of the main divisions in the advertising sector. According to information published at Statista.com, radio advertising expenditures in the U.S. amounted to $17.18 million in 2014. In 2015, this amount increased to $17.43 million. The forecast suggests that radio advertising spending will reach $17.66 million by the end of 2016 and about $17.84 million in 2017. In 2018 and 2019 the numbers will be even larger: $18.01 million and $18.1 million respectively.

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About Pavel Prikhodko

Pavel Prikhodko, Ph.D. Machine Learning

Pavel has worked for many years as a researcher and developer on a wide range of applications (varying from mechanics and manufacturing to social data, finance and advertising), building predictive systems and trying to find stories that data can tell.

In his free time, he enjoys being with his family.

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