On Tuesday Borrell and Associates unveiled a plethora of new data about local advertising revenue. Overall, the research firm is now projecting total 2020 local advertising revenue will come in at $111.2 billion, down 13% from 2019. Borrell had originally projected a 1.3% increase for 2020 ($129.1 billion). That was pre-COVID.
When Borrell breaks out digital from traditional sources, here are the numbers. In 2019 traditional media sources delivered $54.4 billion dollars in 2019. Borrell originally projected a 2020 pre-COVID decline of 3.5% to $52.6 billion. That number has been revised to $42.1 billion, a drop of 22.7%.
On the digital side, 2019 came in at $73.6 billion with a pre-COVID projection of $77.1 billion (+4.9%). That number has been revised to $69.1 billion, a drop of 6.1%.
There was a little good news for radio. According to Borrell, radio faired very well when compared to other traditional media in one category. As this chart points out, when advertisers were asked if they were going to increase their spend or try something new, during the pandemic, radio finished 6th overall and was the number one traditional media being considered by local advertisers.
Post COVID, according to Borrell, 22% of small businesses will spend more money with radio and 4% will start spending for the first time on the radio.
When Borrell interviewed local sales managers, the turnaround in how they’ve projected revenue on a local level, due to COVID-19 is astounding.
The research firm also projects the local advertising revenue recovery will be slow with 2021 down 1.3% and 2020 up only 1.5%.