And that plays right into what many radio companies have been doing for the past several years…focusing more on capturing the growing digital advertising revenue market. Here’s what Borrell & Associates is projecting for 2022.
In a new report issued this week Borrell & Associates is forecasting that local digital advertising will grow 9% in 2022, to $92.8 billion, accounting for two-thirds of all ad
spending. “By 2025, we expect it to account for 72% of all spending.”
What’s very good news for radio about this latest Borrell report is that about 14% of digital advertising remains within local markets, spent with locally based media companies. Borrell calls that bucket of money, “Obtainable Digital Revenue.”
Even in small markets, that amounts to millions of dollars, according to the new report. ” The most aggressive media companies get more than half of this obtainable revenue in their markets. That is, top performers can dominate digital sales so much that they leave dozens of local competitors fighting for the scraps.” Streaming video, or OTT, is currently getting the biggest share of the digital revenue.
