U.S. Local Ad Revenues to Reach $148.8 Billion in 2019

RADIO ONLINE | Tuesday, July 9, 2019 | 1:09am CT

BIA Advisory Services

In an update to its U.S. Local Advertising Forecast 2019, BIA Advisory Services forecasts the total local media marketplace in 2019 will be slightly stronger than expected earlier in the year, with ad revenue reaching approximately $148.8 billion. BIA says the elements supporting the advertising marketplace are a strong economy, an early start to the 2020 election, and most notably, increases in mobile and mobile-social advertising.

Traditional media will retain a significant portion (60 percent) of the overall spend, $89.2B, with digital ad revenue at 40 percent with $59.5B. However, the future of online/digital advertising revenue is progressively increasing, with a 2018-2023 CAGR of 9 percent. Over the same period, traditional advertising revenues will see a decrease in the 2018-2023 period with a CAGR of -1.4 percent.

Local Radio is forecast to earn $14.5 billion (9.8 percent share). BIA Advisory Services says competition for audiences continues to erode over-the-air (OTA) advertising revenue, however online efforts by stations are helping to support a slight growth in overall revenue.

"This is a very interesting time for local media," said BIA Advisory Services SVP and chief economist Mark Fratrik. "Although it's a non-political year, the sheer number of Democratic candidates running and the significant attention this presidential race is garnering is driving earlier than usual advertising revenue across television and mobile/social channels. Additionally, we are more bullish on certain digital advertising platforms like mobile due to its targetability, measurability, attribution and high level of adoption by consumers."

According to the forecast, the top five media (revenue and share of market) in order of largest to smallest contribution in local advertising for 2019:

1. Direct Mail: $37.2 billion (25 percent share)
2. Local Video: $29.5 billion (19.9 percent share) (*Includes local Over-the-Air (OTA) TV, local cable, local online video, out-of-home video, mobile video)
3. Mobile: $21.8 billion (14.6 percent share)
4. Desktop/Laptop/Tablet (Online/Interactive): $20.2 billion (13.6 percent share)
5. Local Radio: $14.5 billion (9.8 percent share)

"It can be surprising to see that direct mail continues as such an important medium," commented Fratrik. "However, it directly targets more households than any other channel and mobilizes local consumers to make purchases, especially when combined with campaigns that make use of digital platforms. The key for revenue growth (and protection) today is not just to look at the media in your sector, but across all local media because you compete across all ad channels today."

Senate Sets Sept. 17 Hearing for FCC Nominee Danielle Thumann Severs The Senate Commerce Committee will hold a nomination hearing September 17 for Danielle Thumann Severs, President Donald Trump's nominee to fill a vacant seat on the Federal Communications Commission. The hearing is scheduled for 10:30am ET in the Russell Senate Office Building. Trump formally submitted More

WGTS Names Chobotar Chief Administrative Officer Todd Chobotar WGTS 91.9 in Washington, DC, has named Todd Chobotar as its next Chief Administrative Officer, effective October 26. He succeeds Kelly Carvalho, who left the Chief Administrative Officer position in May to pursue another opportunity. Chobotar will join the leadership team of Atlantic Gateway Communications, More

Audacy Launches NFC North Weekly Sports Show ''Inside the North'' Audacy has launched "Inside the North," a new weekly one-hour sports show devoted to the NFL's NFC North and its four teams: the Chicago Bears, Detroit Lions, Green Bay Packers and Minnesota Vikings. The program will be hosted by 104.3 The Score morning co-host David Haugh and feature a panel of former More

Former HOT 97 Host Buc Wild Dies at 47 Timothy ''Buc Wild'' Joseph Timothy "Buc Wild" Joseph, the former HOT 97 New York personality best known as co-host of the "Star & Buc Wild" radio show, has died at age 47. His longtime friend and former co-host Star announced Joseph's death during a YouTube livestream on Wednesday. Star said Joseph died Sunday at the Pink Houses More

MaxxKonnect Launches FCC Password Generator MaxxKonnect MaxxKonnect has launched a free web-based password generator designed to help radio and television broadcasters meet new FCC cybersecurity requirements for certain broadcast equipment. The requirements were adopted as part of FCC 26-38 and added to Section 11.35(d) of the More

NAB Marks 25 Years Since 9/11 With Broadcasters NAB Marks 25 Years Since 9/11 With Broadcasters The National Association of Broadcasters is marking the 25th anniversary of the September 11 attacks with a new episode of its "AirTime" podcast examining the role local broadcasters played during the attacks and their continuing responsibility during emergencies. The episode More