And the medium now taking in more ad revenue than radio is….Mobile. That’s according to BIA Kelsey’s midyear update to its Local Advertising Forecast. For 2017, the firm has decreased its advertising estimate to $147.9 billion, down from $148.8 billion forecast in October of 2016. The lighter revenue projection is due to an overall weaker-than-expected economy in the beginning of 2017, which has led to softness in advertising revenues. Here’s how radio stacks up against the other media.
According to the forecast, radio will be pushed out of the top five by mobile. The top five media (revenues and share of market) contributing to the local media pie in 2017 are: Direct Mail: $37.1 billion (25% share), Local TV: $20.9 billion (14% share), Online/Interactive: $18.6 billion (11% share), Newspapers: $16 billion (11% share), Mobile: $16 billion (11% share). Local Radio is 6th with $15.6 billion
BIA is projecting that ad revenue will hit $174 billion by 2021, driven by double-digit increases in mobile, social and local online, and mobile video, all projected to experience at least a 17 percent increase by 2021.
The BIA/Kelsey U.S. Local Advertising Forecast is a five-year forecast that delivers a national overview of total U.S. spending in local markets and includes individual forecast breakouts for direct mail, local video, online/interactive (i.e. local search and local display), newspapers, mobile, radio, out-of-home/OOH video, directories, social and local, and magazines. BIA/Kelsey defines local advertising as all advertising platforms that provide access to local audiences for national, regional, and local marketers.