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OTA Radio Makes Up 9.6% of the $148.8B Local Ad Market in 2016

BIA/Kelsey also says online radio had a much lower share of the ad pie

Over-the-air radio ranks fifth in a list of 15 kinds of local advertising, according to broadcast market research firm BIA/Kelsey. Traditional radio advertising takes up 9.6% of the $148.8 billion local advertising market in 2016, roughly $14.1 billion, according to the well-known broadcast market researcher.

Online radio had a much lower share of the ad pie, only 0.9%, which ranked it 13th out of 15. However, radio’s digital income increased from previous years. According to the Q1 2017 BIA/Kelsey Investing in Radio Market Report, the industry reported a 14% increase in online revenues, compared with a slight increase in OTA income.

Graphic: BIA/Kelsey

This year is expected to follow these trends: BIA/Kelsey predicts OTA revenues will increase less than 1% while online revenue should go up by 12%.

“In an age where consumers have many entertainment choices, local radio maintains its strength and popularity in the marketplace among national and local advertisers,” BIA/Kelsey Senior Vice President and Chief Economist Mark Fratrik said in an announcement. “Our forecast also notes that by 2021 we expect radio to surpass newspapers and become the fifth largest media category among advertisers.”

The top four slots were awarded to direct mail (24.9%), OTA TV (13.3%), online/interactive (12.5%) and mobile (10.8%) advertising in descending order. BIA/Kelsey estimates that the radio industry’s revenue will be $14.9 billion in 2017 — 10.5% of the $148.8 billion U.S. local ad marketplace.

BIA/Kelsey offers a range of research, consulting services and conferences to traditional and new media companies.