As terrestrial radio ad dollars continue to shrink, the adoption of online radio by listeners and marketers will push the web side into double-digit growth over the next few years, a report by SNL Kagan says. This year, the researcher expects the space to hit $441 million, up 12 percent from $394 million in 2008. It is likely to peak next year, as SNL Kagan projects an annual online revenue growth rate of 20 percent in 2010 to $530 million.

Online radio ad revenue remains a tiny part of overall radio ad revenue, but it’s growth shows an increasing audience acceptance on the new online audio delivery channel.

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