BIA: Radio Will Get 11% of Ad Pie in 2016

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In its spring “Local Advertising Forecast” update for 2016 BIA/Kelsey is forecasting consistent growth in local ad revenue over the next four years, which the company says will hit a total of $172.2 billion by 2020. Growth will be driven by big increases in mobile and social advertising, strong political advertising and an improving economy. So how does radio stack up against the other media? Let’s find out.

BIA/Kelsey says by 2020 local online/interactive/digital advertising revenues will be $71.6 billion, representing 41.6 percent of total local media advertising revenues, up from 28.0 percent in 2015.

Growth in online/digital advertising revenues will be stronger than originally predicted, with a 2015-2020 CAGR of 12.8 percent. Over the same period, traditional advertising revenues will remain flat, with a CAGR of 0.0 percent.

BIA Chart

According to the forecast, the top five media (revenues and share of market) contributing to the local media pie in 2016 are:
Direct Mail: $36.9 billion (25% share)
Local TV: $21.9 billion (15% share)
Newspapers: $17.4 billion (12% share)
Online / Interactive: $17.3 billion (12% share)
Radio: $15.4 billion (11% share)

6 COMMENTS

  1. There is some really useful information here, please keep up the great work. I really like how you cover everything in small post… Very beautifully done… awesome stuff…..

  2. It appears that radio will continue to hold it’s own during the next few years if BIA’s forecast is correct. I’m not sure that I agree with “big gains in mobile and on-line” since (non) performance reports of these two are now beginning to be seen. The ROI of digital advertising is, well, underwhelming? They all had to try it, of course. We wouldn’t want to be stodgy among our cool peers, would we? It could be that digital will level out, even shrink, in the years ahead. Making predictions is dangerous work these days.

  3. forget above the damn internet… I did not know I was reading “Death of a Salesman”. Please, continue…

    • Keep coaching them onto the internet, Phil, while the other three I mention eat their lunch. Do you take your smartphone on all sales calls, stopping the presentation while you look at your device when it beeps?
      We sell radio advertising-it’s unrelated to the internet-except for fools like you.

  4. We might be friends yet – if mel T and I can just agree on a couple more things. 🙂
    Indeed, clients do not care about the station’s “pretty web-site”. And neither does the audience!
    Put the effort and resources, instead, into spot-production and on-air presentations.
    And pay the sales-folk fairly.
    Still impressed, meanwhile, by Bob’s strategies. (I copied and pasted the articled onto my desktop.)

  5. Pay attention radio salesmen-

    Your local competition is:
    1. Direct Mail
    2. Local TV
    3. Your local newspaper

    Forget about the damn internet. Direct mail is #1. Print mailed through the Post Office. How damn low-tech is that? Get off-line and get on the street. Your clients don’t care about your pretty web-site.

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