If a genie gave radio’s leaders three wishes for 2024, they’d likely be economic stabilization, lower inflation, and big election revenue. Fortunately, those are the three factors driving MAGNA’s Global Ad Forecast winter update for the upcoming year – but will radio reap those rewards?
Looking at 2023, the report predicts a rise in global media owners’ net advertising revenues to $853 billion for the year, a 5.5% increase from 2022. Globally, MAGNA reported a 2% global drop in advertising revenues for audio media in 2023. This beat the average for all Traditional Media Owners, which includes audio as well as TV, publishing, and out-of-home. TMOs experienced an overall 4% decrease in ad revenues, amounting to $266 billion.
In contrast, Digital Pure-Play media owners saw a 10.5% increase in ad revenues, reaching $587 billion, which constitutes 69% of total ad sales. In the United States, audio wasn’t quite as fortunate, experiencing a 3.7% decline. The entire US ad market grew by 3.6% to $338 billion in 2023.
So what’s in store for 2024? The aforementioned economic calming combined with hotly contested elections and international events like the Olympics will boost global advertising spend by 7.2%, reaching $914 billion. TMO revenues are projected to recover slightly by 2.2%, while digital pure players’ ad sales are anticipated to increase by 9.4%. Even in the US, audio faces a rosier outlook for the new year, with MAGNA projecting 0.4% growth.
As for advertising sectors to target, MAGNA warns that Betting, once the radio darling for states legalizing sports gambling, and Entertainment will remain weak. Restaurants, Retail, Telecoms, Personal Care, Food, Drinks, and Finance all hold in the Moderate category. For the strongest performers: Political spend tops the list, of course, followed by Travel, Auto, and radio-leaning Pharma.
In short, radio and audio, as traditional media, face challenges due to shifting advertiser preferences and the rise of digital media. However, there are opportunities for growth and innovation, particularly in embracing digital platforms and leveraging the unique strengths of audio media to create engaging targeted content. The expected stabilization and growth potential in 2024, no matter how small, provide a hopeful outlook.
