As radio seeks higher spending in the wake of a brutal 2023 for many major operators, global consumer spending on media content and technology is showing signs of a slowdown, with growth decelerating for the second consecutive year, per PQ Media.
The PQ Media Global Consumer Spending on Media Forecast 2024-2028 shows the media content growth rate dropped to 4.5%, a decrease from 6.1% in 2022 and 6.7% in 2021, signaling a potential post-pandemic plateau, following the initial surge. Global expenditures on media content rose by 8.2% in 2023, reaching $934.13 billion, whereas spending on media-related technology saw a modest increase of 1.8%.
Despite the overall slowdown, streaming audio has seen robust growth, helping offset broader declines.
Another bonus for the radio industry? The report highlights potential increases in radio spending during election years, suggesting a periodic boost for the sector in 2024 due to political campaigns in 15 of the top 20 global markets.
The United States remains the largest media market, with spending totaling $527.21 billion in 2023. South Africa emerged as the fastest-growing market among the top 20 global markets, with a 7.7% increase.
PQ Media CEO Patrick Quinn said, “In addition to even- and odd-year growth disparities, macroeconomic headwinds, like high inflation and interest rates, and increased geopolitical tensions in the Middle East, have led some consumers to trim discretionary spending, as evidenced by flat consumer book sales after double-digit growth at the pandemic’s peak.”
As the industry looks ahead, PQ Media anticipates that growth in digital media will decelerate, influenced by saturation in large global markets and shifting consumer behaviors.
This comes after a separate forecast by BIA Advisory Services projected a somewhat dimmer outlook for radio and other traditional media in the US. Initially, BIA had anticipated a significant increase in local advertising driven by political campaigns in 2024. However, the latest forecast suggests a moderate 9.3% increase in overall media revenue to $172 billion, down 2% from earlier predictions due to slowing economic growth and consumer spending.
