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Local Radio Ad Business Soars in '22...

 

Monday, October 18, 2021
 
A new BIA sales report (for 2022) predicts an increase in local radio ad revenue, with a total $12.7 billion split between over-the-air ($11.0 billion) and digital ($1.7 billion). BIA's extended forecast for 2026 puts OTA at $11 billion, moving up and down with the even political years and digital at $2.4 billion. This, according to Inside Radio...
 
BIA Sr. VP/Chief Economist Mark Fratik: "Radio is getting close to its pre-pandemic levels as people continue to return to work commutes and traveling by car, although it doesn't get the bump as local broadcast TV in political years."
 
The BIA report, which provides a nationwide overview of US spending across all media, is updated throughout the year to reflect current economic situations and to adjust ad spend across top media and business verticals, puts local radio's share of an estimated total $161.5 billion ad spend in 2022 at 7.9%, just behind local TV's 13% with a $21 billion spend. With TV, like radio, Fratik adds: "During even political years, it is very apparent that advertising revenue will rise and then dip the following year."
 
The total projected ad-spend represents a 10.1% gain year-over-year, with traditional media revenue accounting for $84.6 billion (52.4%) and $76.8 billion for digital (47.6%). Google and Facebook are poised to rope more than half of digital spending - $26.8 billion for Google, $14.3 billion for Facebook. BIA expects political advertising, during what will no doubt be a strong election season to account for $7.5 billion or 4.6% of that total...
 
The BIA forecast shows mobile's ad spend overtaking direct mail for the first time in 2022, the former at 21% with a projected $34 billion spend and the latter 20.7% at $33.4 billion. Factors driving mobile's move to the top, according to BIA Managing Director Rick Ducey, are COVID's impact on consumers' increased time spent with mobile and other digital media, and greater consumer acceptance and use of virtual and e-commerce channels...
 
"For a long time, we've been talking about direct mail as the king of the share of wallet in local ad spending", says Ducey. "This coming year, for the first time, we pass the crown over to mobile, as its momentum drives it to be the biggest overall piece of the spending wallet - and we expect that to continue in the foreseeable future."
 
In addition to Mobile ($34.0B)(21%) being #1 (Top five media in 2022.) and Direct Mail ($33.4B)(20.7%) at #2, PC or Laptop is #3 ($27.5B)(17.1%), Local TV is #4 ($21.0B)(13.0%) and Local Radio is in at #5 ($12.7B)(7.9%)...
 
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