Local Radio Topped $13.6 Billion in 2022, Growing Just Over Seven Percent Year over Year, according to BIA Advisory Services Estimates
BIA’s Top 10 Radio Stations by OTA Revenue Adjusts Slightly Chantilly, VA (May 4, 2023)…
Chantilly, VA (June 16, 2022) – BIA Advisory Services has decreased its 2022 U.S. Local Advertising Forecast estimate to $167.4 billion, from its original estimate of $173.3 billion issued in December 2021. Headwinds from overseas conflicts, continuing supply chain issues and deep cuts in ad spending from large verticals like automotive precipitated the reduction. Positives for the ad market still include an anticipated strong political ad year, the expansion of online gambling local advertising and consumer spending on leisure and recreational activities. The updated local advertising forecast for 16 media and 96 sub-verticals is now available in the BIA ADVantage™ platform and local radio and television revenue has been updated in the MEDIA Access Pro™ database.
“The year didn’t start as strong as we had anticipated, making for a difficult first two quarters as some expected advertising spend started to retract,” said Mark Fratrik, SVP and Chief Economist, BIA Advisory Services. “On the one hand, personal income continues to rise, but the cost of consumer goods, rising gas prices and inflation are having a major impact and we believe that will influence how advertisers will choose to use their ad dollars in the coming months. All of that must be weighed against what we see as positives for local advertising this year.”
The latest forecast estimate still gives traditional media ad revenue a slight advantage over digital at 52.5 percent of the ad spend ($87.9B), while digital media will get 47.5 percent of the ad spend at $79.5B. Overall, BIA is decreasing digital estimates slightly from the original 2022 forecast due to mobile facing headwinds amid new privacy measures on iPhones. Additionally, there has been slower than anticipated growth. Even as digital channels continue to grow, it’s at a reduced pace than originally expected.
Key indicators for media channels in 2022 include the following:
When examining the biggest changes in the top spending sub-verticals, the updated 2022 forecast reveals key shifts that reflect the supply chain situation, trends in consumer spending and a strong political year. From original 2022 estimates, top changes in the forecast reveal:
BIA’s VP Forecasting & Analysis, Nicole Ovadia, offered her assessment on the forecast saying, “We are seeing the economy play out in local advertising. For instance, people saved money during the pandemic and now, are enjoying different areas in the leisure and recreational verticals. People are spending on vacations and activities, and even going back to the gym. In all these areas, including political, we increased local advertising expectations. For businesses that have a direct reliance on supply chains, we have lowered expectations and will continue to monitor the situation throughout the summer fully expecting we may have to revise our estimates because the economy is in such a state of flux.”
Accessing the Updated 2022 U.S. Local Advertising Forecast
For BIA clients, the company’s BIA ADVantage™ platform and MEDIA Access Pro™ database now contain the updated 2022 U.S. Local Advertising Forecast, which covers 16 media and 96 sub-verticals and includes comprehensive local television and local radio forecast updates and market profile data. Clients are invited to attend an analyst briefing on Wed, June 22 at 3pm. Private registration details will be sent directly via email.
About BIA Advisory Services
BIA Advisory Services is the leading authority for data-centered insights, analysis, strategic consulting, and valuation services for the local media industry. Since 1983, BIA has been a valuable resource for traditional and digital media companies, brands and agencies, the financial and legal community serving media and telecom, as well as the FCC and other government agencies. Today, we offer comprehensive local market advertising intelligence in our BIA ADVantageTM service to help clients discover the path to their best opportunities. Learn more about our offerings at http://www.bia.com.