Two months after calling for a conservative 1.5% revenue increase for radio, BIA/Kelsey has raised its outlook and now projects a 3.7% increase over last year – more than double its earlier forecast. The financial services firm anticipates total radio industry revenues will hit $14.21 billion this year.

BIA says the revised forecast is based on first-quarter results from several groups, other market intelligence and a renewed optimism for the industry as a whole.  The new outlook also reflects radio's ongoing success in incorporating digital and mobile plans into its overall strategy, BIA says.

"We're confident that there is still a lot of room for growth in radio, but it will be a slow and steady rise that shouldn't be measured by the results of a single quarter," BIA/Kelsey VP  Mark Fratrik says. Last week, the Radio Advertising Bureau reported that radio revenue grew 6% in the first quarter for the industry’s largest single quarter percentage increase since third quarter 2000.  “The impact of this year's growth will be seen across many markets and is likely to reflect the areas around the country that have seen an economic upturn,” Fratrik says.