Online Ads Surpass Radio Ads in a Historical First

Google 09-05-2007

eMarketer reports that spending for online advertising has surpassed ad dollars spent on radio advertising for the first time in 2007, with online marketing reaching $21.7 billion while radio reached $20.4 billion.

This would indicate the dominance of online marketing, and make some speculate that radio is a dying part of our culture. eMarketer says this isn’t true, and that online marketing isn’t growing at the expense of radio marketing. The growth rate for ad dollars spent on radio is speculated as slowing to a crawl at 1.5%, but should continue to increase through 2011 nonetheless.

The takeaway here is that radio will need to innovate in order to retain and increase the amount of advertising dollars spent on the industry, similar to what other traditional media mediums have needed to do. eMarketer suggests Internet and satellite radio as options for capturing more ad dollars, though there are reasons that would indicate even this as a doubtful option, including the increasing royalties that niche webcasters face, as well as the decline of satellite radio subscriptions.

HD radio, podcasting, and mobile devices are also named as potential enhancers by eMarketer, suggesting that the radio industry take advantage of new media platforms. The last eMarketer report we mentioned noted the need for better online video ads.

SamiJo

well thats something that people saw coming right?

and I know that I personally don't listen to the radio that often, and definitly not as often as I used to. Now its more of an online thing, see what new music is out, preview it - if I like it...DL it for the iPod.

Raven

I'm really surpsied about how many people still care about the radio but never really listen to it. Once I got into cds I never really listen to the radio anymore. So unless you listening to the news on the radio driving somewhere I seriously doubt people are really even listening to the radio as much as stations would like to think they are.

Hsoolien

people still need the radio to tell them what's cool to listen to. Sad really.

Nina

What's cool or what the trend is? The last time I listened to the radio was a really long time ago. I can atleast say since the first time I was able to listen to my mp3s in a car was the last time I ever listened to the radio. I'm actually surprised it took this long for online ads to beat radio ads. Doesn't this seem a bit late for anyone else?

SamiJo

well, I dont really pay attention to ad's online really unless its something that I'm looking for specifically. And everytime I turn on the radio I get annoyed since its the same song on every station every 20 minutes

Dream

Sami is so right. Just load up an ipod with enough songs and you don't have to worry about or even lame commercials. I've heard a sng playing and withing th next hour they played it again. Its so annoying.

Hsoolien

Back when Nickelback was huge with "How You Remind Me" (that was the name?) i heard it being played perfectly synced on two different stations (one was top 40's the other was Rock), but if you think overplaying of songs or artists is bad down there, up here we have the Canadian Content Laws that force stations to play a certain percentage of Canadian music. So if we have an artist make it big down there, they get the shit played out of them up here. It's so bad I've heard Nickelback played three times in one hour, two different songs, but same fucking artist.

The only time I listen to the radio is if someone else has it on (like at work), I have 5 solid days of music that isn't shit to fill my day