-By Katy Bachman

Radio stations’ renewed efforts to concentrate on online radio are paying off. According to updated projections from SNL Kagan released Monday (Nov. 2), radio online revenue will grow by double digits this year to $441 million, a 12 percent increase over 2008.

In 2010, online radio will hit $530 million, a 20 percent gain. The segment will continue its double-digit growth pace hitting $827 million by 2013.

As online radio revenue grows, it is also expected to become a more important revenue stream for the business, representing a larger percent of total radio revenue. Currently at 2.7 percent of total radio revenue, online radio revenue will rise to 3.2 percent of the total in 2010, increasing to 4.7 percent of the total in 2013.

“With the decline of traditional ad spending, radio stations have turned to online initiatives to grow top-line revenues, improving their Web sites and embracing online streaming and mobile apps to drive their local base to their multiple platforms,” said Justin Nielson, analyst with SNL Kagan.