GLOBAL RADIO, OUT-OF-HOME ADVERTISING TO HIT $89 BILLION BY 2011 Jeffrey Yorke – Radio and Records The global radio and out-of-home advertising market will increase from $69.2 billion in 2006 to an estimated $89.2 billion in 2011, averaging 5.2% compound annual growth, according to the just-released eighth annual edition of PricewaterhouseCoopers' "Global Entertainment and Media Outlook," which covers the forecast period 2007-2011.
The study reports that Canada and Latin America, the two smallest markets, will be the fastest-growing, at compound annual rates of 11.7% and 9.2%, respectively. Canada will total $2.8 billion, and Latin America $1.9 billion, in 2011. The U.S. will increase at a 5.8% compound annual rate, reaching $37.5 billion in 2011 from $28.3 billion in 2006.
The PwC report found that the radio market will grow by 4.5% compounded annually, to $57.3 billion in 2011 from $45.9 billion in 2006. The U.S. radio advertising market should grow by 5%, while Canada's could grow by as much as 12.4% and Latin America's by 9.9%, the report says, adding that both Canada and "the U.S. will be bolstered by an expanding satellite radio market, but slow-growing terrestrial radio will restrain growth in the U.S."
The future of advertising on satellite radio is bright, the study shows, increasing from $65 million in 2006 to a projected $450 million in 2011, a whopping 47.3% compound annual increase. Radio advertising as a whole will total $22.1 billion in 2011, up 2.3% on a compound annual basis from 2006. Satellite radio subscription spending will expand significantly, from $1.8 billion in 2006 to $5.2 billion in 2011, a 24.1% increase compounded annually.
The 50-page report also finds that the overall satellite radio market, including advertising, will expand by 25.3% compounded annually, to $5.7 billion in 2011. The overall radio market will total $27.3 billion in 2011, growing at a 5% compound annual rate from 2006.
Read the entire report here. |