Home Login RADIO ONLINE RSS Facebook
Advertisement

BIA Revises Local Radio Ad Estimates Down to $12.8B


BIA Advisory Services has reduced its early second quarter 2020 forecast for U.S. local radio advertising due to the impact of the pandemic on the national economy. The new revenue estimate is $12.8 billion, broken down to $11.4 billion for over-the-air revenue and $1.4 billion for digital revenue (including local advertising sold by streaming companies), compared with the $14.3 billion combined forecast earlier this year.

By comparison, in 2019 local radio stations generated $12.8 billion in over-the-air revenue and just over $1 billion in digital. This was a -1.6 percent decrease in total revenue from 2018. The 2020 revenue estimate indicates a -10.7 percent decrease in over the air advertising revenue from 2019. One area of growth for radio is in digital. According to the latest Share of Ear update from Edison Research, a portion of AM/FM radio listening online hit 10 percent for the first time in May.

"In 2018, we projected that radio's digital platforms would reach $1 billion by 2019 and last year the industry hit this mark," said Mark Fratrik, SVP and Chief Economist, BIA Advisory Services. "For 2020, our ad forecast shows that digital sales, including streaming, will stay steady. Then by 2021, Radio online[1] revenue will start to climb back up again. On the over-the-air side, we see a bigger COVID hit, with a steep drop in 2020 and some recovery back by 2021."

BIA's analysis reveals the following verticals will spend the most on radio in 2020:

  • Finance/Insurance $2.00 B
  • Retail $1.97 B
  • Automotive $1.50 B
  • Technology $1.30 B

These industries may benefit from the continuing shift in radio listening from the car to the home as at-home audio environment features give consumers multiple opportunities to consume promotions. Streaming has become a major growth opportunity for broadcasters to maintain existing audiences and attract new, younger listeners. BIA's revenue estimate drops to $12.5 billion when streaming ad revenue is not included.

"Audiences are spending more time on streaming and podcasting in ways they haven't in pre-pandemic times," said Rick Ducey, BIA Managing Director. "These new audio habits are likely to take root and grow over time and advertisers will look to all platforms to promote their message. Radio sellers who see and respond to the audience and advertiser acceleration to digital audio with new formats, content and appeal for different demo groups will see better than average performances."

Advertisement

Latest Radio Stories

Ross MacLeod Named OM for Alpha Media in Portland OR
Ross MacLeod
Ross MacLeod
Alpha Media Portland names Ross MacLeod as its new Operations Manager. In addition to his leadership duties, MacLeod will also serve as Content Director for News/Talk KXL-FM and Sports outlet KXTG-AM. MacLeod joins the company with a strong programming background, most recently serving as Program Director More

Melissa Chase Departs Audacy Houston Amid Restructuring
Melissa Chase
Melissa Chase
Melissa Chase, Vice President of Programming for Audacy Houston, has exited the company as part of a round of staffing reductions within the cluster. Chase's departure comes alongside the exit of Jay Michaels, who served as Assistant Brand Manager for KHMX (Mix 96.5) and KKHH (95.7 The Spot). Audacy has not More

NYPR Appoints John Rose as Board Chair, Adds Trustees
New York Public Radio (NYPR)
New York Public Radio (NYPR)
New York Public Radio (NYPR) has announced a series of leadership changes, including the appointment of longtime trustee John Rose as Chair of the Board of Trustees, along with the addition of three new board members and two newly named Vice Chairs. John Rose, a Senior Advisor at More
Advertisement

Kannon Launches New Weekday Program ''The Kannon Show''
Kannon
Kannon
Kannon and Kannon Worldwide LLC have announced the debut of "The Kannon Show," a new weekday radio program built for CHR and Hot AC outlets seeking high-energy, personality-driven content and flexibility in programming. Airing weekdays, the show is hosted by Kannon, a veteran radio personality known for his More

Spatz & Casey Exit Mornings at WONE-FM in Akron
Matt Spatz and Amanda Casey
Matt Spatz and Amanda Casey
Rubber City Radio's Classic Rock 97.5 WONE-FM in Akron, OH, has parted ways with morning hosts Matt Spatz and Amanda Casey. The duo had been co-hosting the station's morning show since January 2021, following the retirement of longtime local radio veteran Jeff Kinzbach. Later that year, Spatz was promoted to More

Salem Media Group Launches ''The Scott Jennings Show''
Scott Jennings
Scott Jennings
Salem Media Group has announced the debut of "The Scott Jennings Show," a new weekday program joining the Salem Radio Network (SRN) lineup beginning Monday, July 14. The one-hour show will air from 2-3pm ET and will also be available on-demand via the Salem Podcast Network (SPN). Jennings, a conservative More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement