Radio Revenue Declines, What’s The Solution?

Air Time + Web Ads - Does it really increase revenue?
Air Time + Web Ads - Does it really increase revenue?

I’ve recently read a couple of articles regarding the revenue decrease of radio stations in the United States in the recent quarter. The New York Time reports, Radio advertising was down 10 percent last month from October 2007, according to the Radio Advertising Bureau, the 18th consecutive month of declines. And Audio Graphics says that it’s the eighteenth consecutive month of declining revenue.

In my comment to these articles, I have expressed my intent to share the current status of the Philippine radio market. Here’s the rest of that comment:

So far here in the Philippines the radio market is still very competitive. Some are not plagued by media competition like iPods and internet radio, and so with satellite radio.

Unfortunately though there are certain formats that were affected with this media diversity. Especially CHR or those high end radio formats.

CHR, smooth jazz, lite AC, and other English-speaking formats have been hit by this media diversity. This is because these formats target the upper classes who can afford to buy these mp3 gadgets, and have greater access to online radio streaming.

What is flourishing right now in our country is the MASA format (masa means mass). It’s a Hot AC format. It’s between CHR and lite AC, but unlike the HOT AC in the US, our HOT AC here plays rap and rhythmic songs.

What’s really distinctive about the Philippine Hot AC format is that the DJs converse in the local language or non-English exclusive. Listenership includes a fraction of the upperclasses, and a majority of the C-D-E market, which basically supports the “MASA” or mass format name.

Not that the majority of the audience in our country cannot afford mp3 players. It is just that these MASA stations have branded themselves as indispensable media. So, even if college students, plain housewives, taxi drivers, house maids, and ordinary employees have iPods, they still turn to radio for music, news, and information.

But then I agree with you that listeners have changed. And so far, radio stations have not yet fully embraced the potential of online advertising.

A handful of radio stations have websites but only less sell their space. While most stations are taking the first step by encouraging listeners to connect to their Myspace, Facebook, Friendster or other social networking account.

Online advertising is still in the conceptional stage in our country. And if our radio stations unintentionally abort this, our successful MASA stations might also experience the same revenue decline US stations are suffering from now.


2 thoughts on “Radio Revenue Declines, What’s The Solution?”

  1. you’re right in in your phil. radio state situationer, bai. i get to listen to fm music only through my cellfone..kanang wa na gyuy lingaw…lol
    wishing you a Happy New Year and a prosperous blogging year…let’s keep in touch, bai.


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