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."

Licata Named CEO of iHeart Multiplatform Group Ann Marie Licata iHeartMedia has named Ann Marie Licata as CEO of its Multiplatform Group, the company's largest operating segment. The Multiplatform Group encompasses the company's Markets Group, which includes more than 860 local broadcast radio stations, as well as its live events and sponsorships division, radio More

Report: Audio Use Surges Among MLB Fans Audacy Insights Audacy reports a growing shift in how fans follow Major League Baseball, with audio emerging as a key companion to live game viewing. In a new Insights report, the company says today's mobile, multitasking audience is increasingly turning to audio for a more flexible and personalized experience. More

WWNC News/Talk Expands to 92.9 FM in Asheville WWNC-AM & FM/Asheville NC iHeartMedia Asheville has expanded the reach of News Radio 570 WWNC by launching a simulcast on 92.9 FM, effective immediately. The move places the station's News/Talk programming on both AM and FM, broadening accessibility for listeners across Western North Carolina. More

Lisa Varner Named GM of Saga's Ocala Radio Cluster Lisa Varner Saga Communications has promoted Lisa Varner to Vice President and General Manager of its North Central Florida Media radio group in Ocala, FL, succeeding retiring GM Howard Tuuri. Varner has served as Director of Sales for the three-station cluster over the past four years. In her new role, she will More

BFOA Earns Top Ratings for Transparency, Impact Broadcasters Foundation of America (BFOA) The Broadcasters Foundation of America (BFOA) has received top ratings from leading nonprofit evaluators, underscoring its commitment to transparency and effectiveness. The organization earned a Platinum Seal of Transparency from Candid, along with a 100% "Give With Confidence" score More

Westwood One Sets NCAA Final Four Coverage Westwood One Sports Westwood One will deliver live audio coverage of the 2026 NCAA Men's and Women's Final Four and national championship games, airing across terrestrial radio, streaming platforms, and digital apps. Coverage of the men's tournament begins Saturday, April 4 at 3pm ET with "The Final Four Show," followed by More