In the latest review of current audio advertising trends, Madison and Wall Principal Brian Wieser unpacks radio’s losses. Wieser examined Q1 growth trends and ad revenues of iHeartMedia, Audacy, and Cumulus, confirming a decline of around 6.1% in total ad revenues year over year.
This follows a modest growth of 3.3% throughout 2022, primarily driven by the industry’s rapid expansion in the first quarter of that year. In comparison, the top 20 advertising sellers in other mediums experienced a growth rate of 3.2% in the first quarter of 2023 and 9.0% throughout 2022.
While traditional ad revenue trends are slightly down, there are ways to offset any decline and foster growth. Wieser says numbers could improve if companies focused on more digital audio investments like podcasting. If radio can showcase its cost-effectiveness and reach to larger advertisers, expand services for marketers, and explore additional consumer-centric and consumer-paid services, it has a better chance of weathering economic headwinds. The article also emphasizes the enduring importance of audio platforms, even if the business aspect faces ongoing challenges.
