Local Radio to See $13.6 Billion in 2024 Ad Revenue

RADIO ONLINE | Monday, September 16, 2024 | 3:33pm CT

Radio Advertising Bureau (RAB)

The local radio industry is set for a promising year in 2024, with ad revenue projected to reach $13.6 billion. This total includes both over-the-air (OTA) and digital radio advertising, reflecting a positive increase from 2023 levels. The forecast, developed by the Radio Advertising Bureau (RAB) in partnership with BIA Advisory Services, positions local radio as the fifth largest advertising medium in the broader U.S. local advertising marketplace, which is expected to see $174 billion in total spending.

BIA's U.S. Local Advertising Forecast anticipates a strong outlook for radio revenue into 2025, with the total projected at $12.9 billion, including $2.9 billion from digital platforms.

Key drivers of this growth include political advertising, which is predicted to lead local radio spending in 2024 with over $631 million. Other significant categories for radio advertising include Investment & Retirement Advice, Quick Service Restaurants (QSRs), Commercial Banking, and Supermarkets.

Looking ahead to 2025, Quick Service Restaurants are expected to surpass other sectors, becoming the top spender in local radio advertising with $558 million. Hospitals are projected to join the top five categories, reflecting shifts in advertising spending.

Digital advertising on radio platforms is also expected to grow, with Finance and Insurance businesses leading the way, spending $586 million in 2025, followed by Retail at $466.6 million. Restaurants, Auto, and Technology are also expected to be among the top digital spenders.

"As the radio advertising landscape continues to shift, prominent opportunities are emerging amidst the changes," said RAB President and CEO Mike Hulvey. He emphasized that evolving consumer behavior and the growing integration of digital platforms offer significant opportunities for radio broadcasters to boost revenue in local markets.

BIA Advisory Services Vice President Of Forecasting and Analysis Nicole Ovadia highlighted the adaptability of local radio stations. "Local radio stations are rising to the challenge, producing compelling, original content and embracing digital integration. These shifts present fresh opportunities for advertisers to forge meaningful connections with radio listeners," Ovadia noted.

RAB and BIA Advisory Services will further explore these trends in a live presentation titled "Navigating the Evolving Landscape of U.S. Radio Ad Spend" on September 25, available for RAB members. Register here.