In its newly released U.S. Local Advertising Forecast for 2020, BIA Advisory Services estimates total local advertising revenue will reach $161.3 billion. That’s an increase from $152.5 billion this year (5.9%). Political will help traditional media take the majority of that money. So where does radio fit in?
Traditional media will account for 58.5 percent of total local advertising in 2020, at $94.4 billion, increasing with the help of political spending which jumps from $93.2 billion in 2019. BIA says online/digital revenue will grow to $66.9 billion in 2020, taking 41.5% of total local revenue, an increase from $59.3 billion in 2019.
Taking a closer look at radio in BIA’s projections, radio will see $12.8 billion in over-the-air revenue in and $1.5 billion in online revenue. If those projections become reality, it will result in radio’s over-the-air revenue declining 2% with digital increasing 8.4%.
In the political pot of money, BIA says radio will get 4.7% or $312 million of the over $6 billion to be spent in 2020. Television will take home 50% of that revenue ($3 billion), with digital getting $1.42 billion and cable $915 million.
Overall, $29.5 billion will be spent on mobile in 2020, growing to $44.6 billion by 2024. Close to 40% of mobile spending will be tied to native social.
