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)…
New Report Explores Significant Growth in Local OTT Advertising Nationwide and by U.S. Regions and Details Top Spending Verticals
CHANTILLY, Va. (July 19, 2022) – A new research report from BIA Advisory Services reveals that over-the-top (OTT) is one of the fastest growing channels for local media and increased at a rate of 43 percent compound annual growth from 2020 to 2022. Sponsored by Vevo, the report, OTT – The Rising Star in Local Ad Spending: Regional and Business Vertical Trends, shows that BIA forecasts just over $2 billion in OTT advertising in 2022, up from just over $1 billion in 2020. This substantial growth now gives OTT the distinction of being the fastest growing local advertising platform. BIA defines OTT ad spend as comprising ad spending targeting local viewers of long form premium video content delivered via the Internet.
“The sheer growth and volume of OTT impressions have taken the local OTT channel from a fill-in audience reach extension play to a full-fledged marketing channel,” said Rick Ducey, Managing Director and report author, BIA Advisory Services. “Now, OTT is recognized as a channel capable of delivering local ad impressions at scale across demographics and market geographies, making it a highly competitive channel across all media.”
The attractiveness of OTT, as explained in the report, includes the valuable and unique characteristics of both highly engaging premium videos within a brand-safe environment that is combined with the data-driven marketing capabilities of digital advertising. This blend also includes the ability to define and activate audience segments with first and third-party data and to target, optimize and measure the performance of campaigns.
BIA organized its local OTT forecast data in five geographic U.S. regions. Each region has demonstrated high growth rates since 2020, and offers three key takeaways:
Growth Rates in OTT Ad Spend by Region (% CAGR)
Source: BIA Advisory Services, Local Market Ad Forecast, Issued June 2022
The top spending business category in local OTT advertising is the General Services vertical (i.e., legal, plumbers and HVAC, utilities, funeral homes, and more), with expected revenues to reach $337.2 million across all U.S. regions in 2022. General Services businesses in the Southeast region will spend the most ($105.7 million) on local OTT. The report also details spending in the automotive, restaurant, health, and finance/insurance verticals.
A full list of topics covered in the report include:
“The data and insights that BIA provides in the report show the efficacy of local OTT as a competitive and powerful marketing channel,” said Liz Baxter, Director of Local Advertising, Vevo. “As OTT continues to show itself as a win-win for advertisers, brands and agencies that want to target local audiences have a valuable new media channel to add to their advertising mix.”
Report Available Complements of Vevo
“OTT – The Rising Star in Local Ad Spending: Regional and Business Vertical Trends,” a BIA Sponsored Research report, sponsored by Vevo, is available for free download here.
BIA Sponsored Research
BIA Sponsored Research is commissioned by companies that wish to spotlight timely issues, trends and topics that have a bearing on the local media and marketing industry. BIA maintains full editorial control and applies its longstanding standards of editorial practice and objective market analysis. Companies interested in contracting BIA to cover a particular topic or profile sectors of local media innovation should email firstname.lastname@example.org for more information.
Vevo is the world’s leading music video network, connecting an ever-growing global audience to high quality music video content for more than a decade. Founded by Universal Music Group and Sony Music Entertainment in 2009, Vevo offers fans worldwide a vast array of premium content to choose from, showcasing official music videos alongside a constantly developing lineup of live performances and innovative original programming. From top superstars to rising new talents, Vevo brings incomparable cross-promotional support to artists across the musical spectrum, at every stage of their careers.
Vevo has consistently evolved over the past decade to lead within today’s ever-changing media landscape, embracing partnerships with a number of leading distribution platforms to deliver extraordinary content within ad-supported environments. With more than 25B views across television, desktop and mobile devices each month, Vevo brings music videos to the world – when, where, and how fans want them.
Vevo is available on YouTube, Samsung, Samsung TV Plus, Amazon Fire TV, Amazon Echo Show, PlutoTV, Apple TV, Roku, Comcast (Xfinity X1 and Xfinity Flex), VIZIO, Sky (NowTV and SkyQ), Foxxum, XITE, NetRange, Redbox, T-Mobile Play, Virgin Media, Xumo, Telstra, Foxtel, Fetch, Rogers, Shaw, Local Now, Google TV, Android TV, Cox and Vewd.
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 and advertising 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 that provides grounded, reliable advertising estimates across media channels and business verticals. We also deliver comprehensive data on the broadcasting and publishing industries. Our leading solutions include BIA ADVantageTM and MEDIA Access Pro™. Our goal is to provide the best service to help our clients discover their path to the best opportunities. Learn more about our offerings, podcast, newsletter and more at http://www.bia.com.