BIA Advisory Services has lowered its projections for U.S. local advertising revenue for 2023, including radio.
“After Meta, Alphabet and others lowered expectations for 2023, we examined local digital advertising spending revenues over the first six months of the year and determined a reduction was necessary,” said Nicole Ovadia, VP forecasting and analysis in a press release.
“After years of double-digit growth, we are seeing some headwinds that will have a significant impact on digital local advertising. For traditional media, while we’ve made changes to certain media and categories throughout our forecast, the total ad forecast for this segment remains consistent with our original expectations.”
But last Novemer, BIA had predicted that U.S. radio revenue this year would total $13.5 billion, compared to a projected $14 billion for 2022 (later updated to $14.1 billion).
Now it says radio over-the-air and digital revenue combined will total $13.2 billion this year, about 21% of which will be from digital/online.
Its estimates for this report include all spot revenue from OTA radio, from national, regional and local advertisers, as well as radio online advertising.
It decreased its overall forecast for local U.S. advertising to $161.7 billion. It thinks traditional media will earn $84 billion, with digital revenue reduced from an original estimate of $81 billion to $78 billion.
