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."

Tina Murley Joins Connoisseur Media as SVP, West Tina Murley Connoisseur Media has named Tina Murley Senior Vice President, Western Region and Market Manager for San Francisco and San Jose, effective immediately. Murley most recently served as Chief Revenue Officer for Beasley Broadcast Group, where she was credited with revenue growth and strategic leadership across More

CPB Board Votes to Dissolve After Federal Funding Cut Corporation for Public Broadcasting (CPB) The Corporation for Public Broadcasting (CPB) announced that its board of directors has voted to dissolve the organization after 58 years, following Congress's decision to rescind all federal funding for public broadcasting. CPB said sustained political opposition and the loss of More

92.9 FM ESPN Revamps Lineup as Geoff Calkins Exits WMFS-FM & AM (92.9 FM ESPN) Memphis WMFS-FM & AM (92.9 FM ESPN) Memphis has announced a series of weekday programming updates that will take effect January 12, including expanded local shows and the departure of a longtime on-air voice. Under the new schedule, "J&J" with John Martin and Jason Smith will air weekdays More

Study Finds Audio Podcast Ads Outperform YouTube Video Cumulus Media | Westwood One A new podcast sales effectiveness study from Oxford Road and Podscribe finds that audio podcast ads significantly outperform YouTube podcast video ads in driving consumer purchases, reinforcing a growing body of research showing audio's advantage in attention, engagement, and return on investment. The More

KZ106 Names Jeremy Loper as New Morning Host Jeremy Loper WSKZ-FM (KZ106) Chattanooga announced that veteran rock radio host Jeremy Loper will join the Classic Rock outlet as host of The Loper Show, beginning January 12. Loper arrives from Nashville, where he most recently hosted mornings at WNRQ (105.9 The Rock). Prior to that, he spent 12 years in Columbus, OH, More

Tanner & Friends Goes Live, Local on 98.9 The Bull Seattle Tanner Chambers Hubbard Radio's KPNW-FM (98.9 The Bull) has launched a new live and local morning show, "Tanner & Friends," based entirely in Seattle. The program is hosted by Pacific Northwest native Tanner Chambers and centers on conversation-driven content, emphasizing authenticity and connection over spectacle. The More