And, according to the research firm, while over-the-air revenue is still radio’s biggest category, it continues to decrease as digital continues to grow. “While the shares of local radio over-the-air advertising is eroding, radio digital is increasing, providing stations an avenue to still increase their sales.”
BIA forecasts a total of $14.7 billion will be spent this year in ad-supported local audio platforms including broadcast radio and digital audio.
BIA’s local audio estimate breaks out advertising revenue forecast for 2022 for radio, radio’s digital side and Pandora.
Over-the-air radio: $12.7 billion
All revenues generated by local radio stations for sale of time to either national or local advertisers from their over-the-air broadcasts. Does not include any advertising sold by the national radio networks.
Radio Digital – $1.7 billion
All revenues generated by local radio stations from national, regional and local advertisers targeting a local market from their online activities. Includes display and streaming advertising revenue other than Pandora.
Pandora $400 million
Audio and display advertising revenue generated by Pandora from national, regional and local advertisers targeting a local market.
BIA provides local audio forecast data for each of the 253 Radio Markets and across 96 business verticals. Overall, the Top 10 business verticals spending in local radio’s OTA and Digital platforms are shown in the chart below, led by Auto & Direct Property Insurance and QSR/Fast Foods, each of which are the top spending in both the broadcast and digital radio categories.
