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."

Mark Adams to Retire from WXTU After 26-Year Run Mark ''Razz'' Adams Beasley Media Group announced that longtime radio personality and programmer Mark "Razz" Adams will retire from WXTU-FM, with his final day set for May 22. Razz has spent more than two decades with the company, including over 16 years on-air at WXTU, where he most recently hosted middays. He's also served as More

Borrell: Digital Ad Growth Slows, Share Battle Rises Borrell Local digital advertising is entering a slower growth phase after two decades of rapid expansion, according to the Borrell 2026 Annual Digital Benchmarking Report. The report finds year-over-year growth has dropped to low single digits and is expected to fall below 3% by 2029, marking the slowest More

Radio Mercury Awards Reveal 2026 Finalists Radio Mercury Awards The Radio Mercury Awards, produced by Radio Advertising Bureau (RAB), has announced finalists for its 2026 competition, recognizing excellence in radio and audio advertising. Now in its 35th year, the awards honor creative work across broadcast radio, streaming audio, podcasts, More

Entravision Q1 Revenue Jumps on Ad Tech Growth Entravision Communications Corporation Entravision Communications Corporation reported first quarter 2026 results showing strong overall revenue growth driven by its advertising technology business. Consolidated net revenue rose 114% year-over-year to $196.9 million, fueled by a 204% increase in its Advertising Technology & Services (ATS) More

Townsquare, Broadway Media Form Digital Ad Deal Townsquare Media Townsquare Media has announced a digital advertising partnership with Broadway Media aimed at expanding data-driven marketing capabilities and revenue opportunities. Under the agreement, Townsquare's digital division, Townsquare Ignite, will provide Broadway Media with More

Bob Heymann to Speak at MFM Financial Forum MFM Financial Forum Media Services Group Managing Director Bob Heymann will speak at the Media Financial Management Financial Leaders Forum in San Antonio on May 18. Heymann will participate in a session titled "Let's Make a Deal...or Not!" presented by the Washington, DC-based firm Bond & Pecaro. The session will be moderated More