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. (March 18, 2013) – BIA/Kelsey, adviser to companies in the local media industry, forecasts local media advertising revenues to climb from $132.5 billion in 2012 to $148.8 billion in 2017, representing a compound annual growth rate (CAGR) of 2.3 percent. In its newly released U.S. Local Media Forecast (2012-2017), the firm reports national brands accounted for 32.1 percent or $42.5 billion of the $132.5 billion spent on local media advertising in 2012. National’s share of local ad spending is expected to grow to nearly $51 billion by 2017.
“Local media has become a key channel, not only for local small businesses, but for regional businesses, national franchises and national brands targeting locally,” said Mark Fratrik, vice president and chief economist, BIA/Kelsey. “This is clearly seen in our tracking of market shifts in mobile, social, search, promotions, coupons and deals, native ads and sales transformation.”
Digital media continues to increase its share of total local media revenues, growing from 17.4 percent in 2012 to 27.6 percent in 2017.
The firm expects traditional local media revenues to decrease from $109.4 billion in 2012 to $107.6 billion in 2017 (CAGR: -0.3 percent). As anticipated, traditional media revenues experienced a bump in 2012 from political advertising. The political ad spend cycle contributes to a drop in revenues in odd-numbered years. Despite the year-over-year political advertising seesaw effect, traditional media revenues remain remarkably steady throughout the forecast period.
BIA/Kelsey analysts will present highlights from the forecast at the firm’s LEADING IN LOCAL: The National Impact conference, taking place today through Wednesday, in Boston. LEADING IN LOCAL is gathering senior executives from across the local media, advertising and marketing space to examine how national’s local play is having an impact on local media.
BIA/Kelsey defines the local media advertising marketplace as those media that provide local audiences to all types of advertisers. BIA/Kelsey’s Annual U.S. Local Media Forecast (2012-2017) draws from proprietary data; company, industry and country information in the public domain; and discussions with clients and non-clients about the direction and pace of development in the local media marketplace. The forecast is issued annually each spring and updated in the fall. BIA/Kelsey custom advisory service clients receive a full forecast report. For information on gaining access to the forecast by becoming a BIA/Kelsey client or for details on purchasing the forecast, contact Steve Passwaiter, VP, business development, at email@example.com or (703) 818-2425.
BIA/Kelsey advises companies in the local media space through consulting and valuation services, research and forecasts, Custom Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at http://www.biakelsey.com, on the company’s Local Media Watch blog, Twitter (http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey). Stay connected by subscribing to the firm’s bi-monthly newsletter.