Radio's Lackluster Revenue Growth

The Radio Advertising Bureau reports that May radio revenue grew 1%. Over at R&R, Banc of America Securities analyst Jonathan Jacoby expects continued lackluster growth in the second quarter, with Clear Channel lagging due to a predicted 6% decline in revenues as a result of "Less is More".

I received an email from our anonymous observer who provides this analysis...

"I believe I have the word Mr. Jacoby is looking for: Can you say ratings? Remember when Network TV was a dinosaur? Funny how they keep racking up fine numbers, delivering mass audience.

"I also had this thought. Do the math, and explain how digital radio is going to solve anything. Here's a hypothetical:

"Say gross radio billings are 3 Billion dollars. Will digital radio, in any near term scenario add 10%/300 million to the bottom line? No. 5%/150M? Unlikely. OK. so lets say 30M. Hate to say it, but that's just 1%. Hmmm."