The local radio market is growing, albeit at a more moderate pace than it once did, by expanding its offerings to off-air platforms, providing a wider range of listener experiences and advertiser opportunities.
That’s according to BIA/Kelsey in its latest state-of-the-industry report “Local Radio Stations Profiles and Trends for 2014 and Beyond.” The document, available for purchase, provides a comprehensive view of the industry based on the long-term research and analysis conducted by BIA/Kelsey for its clients and the industry.
Defining the local media marketplace as all local media/services that provide access to local audiences, BIA/Kelsey projects total local media spending for 2013 to be $132.7 billion. This marketplace includes all of the media that local radio stations compete against for national and local advertising spending in their markets.
Based on this definition of local advertising, local radio stations receive 11.5% of all advertising revenue being spent in local markets, fourth amongst all local media segments, behind direct mail (27.2%), newspapers (16.1%) and TV (14.9%).
“As we move toward 2014, it’s clear the radio industry has adapted to incredible competition from all sides, with streaming and other audio competitors taking audiences,” said BIA/Kelsey Chief Economist Mark Fratrik. “Yet local radio is surviving, and in some instances, thriving, and poised to compete well in the new marketplace. Radio is also beginning to deliver other compelling digital services that help its local advertisers navigate promotional opportunities. With the right attitude towards the new reality of increased competition and strategic planning, local radio stations can prosper,” according to the author of the 65-page report.
