• by Erik Sass  @eriksass1, February 17, 2012

The tentative recovery in radio advertising sputtered to a standstill in the last part of 2011, with total ad revenues declining 2% to $4.5 billion, according to the Radio Advertising Bureau. This follows earlier year-over-year increases of 3%, 1%, and 2% in the first, second, and third quarters, respectively.

Thanks to the earlier quarterly increases, the radio industry still saw an overall increase in full-year revenues, with annual growth of 1% to $17.4 billion.

The fourth-quarter decline can be attributed, in large part, to the absence of political advertising associated with 2010’s midterm elections in November -- already cited by a number of broadcast radio groups as a factor in weak period earnings results. 

Overall, spot revenue declined 4% in the fourth quarter to $3.6 billion, while network increased 5% to $312 million, digital revenues jumped 8% to $185 million, and off-air revenues grew 6% to $397 million. For the full year, spot revenue was down 1% to $14.06 billion, network increased 3% to $1.14 billion, digital was up 15% to $709 million, and off air grew 7% to $1.49 billion.

Although digital ad revenues are growing at a healthy clip, they remain a small part of the overall business, at 4.1% of total revenues in the fourth quarter, as well as the full year 2011.  

In terms of categories, automotive advertising remains the biggest revenue stream at 26% of total spending, up from a low of 23% in 2009. It was followed by a three-way split between communications, restaurants and TV/networks/cable, all with a 19% share. Financial advertising made up 17% of total radio revenues in 2011.