BIA tracks the local advertising spend for 16 different media, including eight traditional media and eight digital/online media. Their nationwide and local market estimates are delivered in BIA ADVantage, their advertising intelligence platform. Every week, BIA and Radio Ink will be partnering to provide an exclusive look at BIA’s estimates for market groupings.
The goal is to examine radio’s Share of Wallet and explore ways to expand it. Let’s kick things off by looking at what’s been occurring this year and what we can expect in the new year.
For 2020, BIA estimated that radio will represent about nine percent of total local advertising spend. As the local advertising dollars declined, so did radio advertising, but its share did not decline very much.
Now, looking to next year, BIA’s new 2021 U.S. Local Ad Forecast estimates that revenue across all media will reach $137.5 billion and that radio’s share will grow to 9.2 percent. Increases in online advertising revenue are helping radio grow slightly. But how can Radio extend its share of the overall ad spend?
BIA says the key is “Share of Wallet.” This means that radio operators should not only focus on direct radio competition, but also on the larger advertising pie. BIA recommends that to grow your revenue share in this challenging marketplace, focus on taking share away from other traditional media and continuing to grow your online revenue. Their research also looks at radio’s share of wallet for 95 business categories. This is critical to develop successful sales campaigns focused on the best opportunities.
Here are BIA’s estimates for the Top 10 markets in 2021: