Local ad revenue in the United States is picking up and radio is participating in the trend, according to new data from BIA Advisory Services.
The research company said it has revised its 2021 forecasts for total U.S. local advertising revenues across media and business verticals to $142.4 billion, up $4.8 billion or 3.9% from its November estimates.
“The projection is split between traditional and digital media but shows that the divide is narrowing, with traditional advertising only 8% ahead of digital mediums that include mobile, online, over-the-top, email and traditional media’s online ventures,” it stated.
The company quoted its SVP and Chief Economist Mark Fratrik saying, “There’s an acceleration in the market that couldn’t be accounted for last fall. The economy is growing and we’re observing money being spent to reach audiences through various media.”
For radio specifically, it said local advertising “will rebound somewhat to $11.7 billion in 2021 and $12.3 billion in 2022.” Of those numbers, digital platforms will contribute $940 million and $1.04 billion respectively.
OTT will grow 16% this year, “surpassing the trajectory of mobile as more consumers take advantage of various streaming services on their TV screens.”
Local TV advertising will decline to $16.2 billion in 2021 “but bounce up to $19.3 billion in 2022,” with $1.5 billion and $1.7 billion respectively coming from digital platforms.
“The revised forecast also sees a 5.6% increase in overall compound annual growth in U.S. spending in local ad markets and expects the amount to reach $157.1 billion in 2022 and $162.1 billion in 2023, while the digital media share will first leapfrog to 51% over traditional media by 2023,” BIA reported.