In 2018, according to BIA, radio’s over-the-air revenue was down slightly to $13.3 billion, from $13.5 billion, a decline of 1.6%. Digital was up 8.1% to $923 million, the sixth straight year digital revenue has increased for radio.
Combined 2018 revenues of $14.2 billion positioned radio as the fifth most significant local advertising platform, behind direct mail, mobile, online/digital, and local television.
BIA Advisory Services Chief Economist Mark Fratrik said, “Although local radio stations are still important players in their markets and are managing to maintain their position in the top five advertising platforms, we do expect the OTA advertising revenue of U.S. radio stations to decrease this year by 1-2 percent and through the next few years.”
Fratrik forecasts that combined radio revenues will remain relatively flat for at least the next five years, while digital platforms will hit $1 billion by 2020.
As far as radio transactions go in 2018, following a strong year of transactions in 2017 due to the Entercom/CBS merger, volume was down to a level similar to previous years, with 609 stations being sold at an estimated value of $745 million.
