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Radio Struggles as Advertisers Tune Out

Despite a slight growth in audience, homogenized radio is losing ad dollars

By Jim O'Neill,  Newser User

Posted Nov 26, 2008 9:35 AM CST

(Newser) – More listeners hasn’t translated into more cash for radio broadcasters struggling to keep advertising revenues up, reports the New York Times, as prime clients like auto dealers and retailers cut ad buys in their own battle to stay afloat. Radio advertising continued its 18-month nosedive, declining 10% in October from the previous year.

Despite a growth in audience numbers—235 million listeners per week to last year's 232 million—the amount of time they spend listening has dropped. And advertisers are having a tough time finding differentiation in an industry that tends to "blunt the edges of the formats, so that each of the stations could play across more demographic groups," said one ad agency VP. “The stations aren’t as relevant to people as they were." Only newspapers had a worse second quarter.

XM Satellite Radio and Sirius Satellite Radio products are advertised side by side on the exterior windows in the Sherman Oaks section of Los Angeles.
XM Satellite Radio and Sirius Satellite Radio products are advertised side by side on the exterior windows in the Sherman Oaks section of Los Angeles.   (AP Photo/Damian Dovarganes, File)
Listeners are tuning in, but advertisers aren't.
Listeners are tuning in, but advertisers aren't.   (Shutterstock)
Clear Channel Communications and other broadcasters are having a tough time as ad revenues shrink.
Clear Channel Communications and other broadcasters are having a tough time as ad revenues shrink.   (AP Photo/Eric Gay, file)
High school students walk past the CBS Studios in Los Angeles, Monday, July 30, 2007.
High school students walk past the CBS Studios in Los Angeles, Monday, July 30, 2007.   (AP Photo/Nick Ut)
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