The forthcoming Local Advertising Forecast from BIA Advisory Services calls for a 9.6% increase in ad spend for online radio in 2019, compared to 2018. BIA includes both AM/FM simulcasts and pureplays like Pandora and Spotify in its new forecast. Ad spend for over-the-air radio is forecast to dip 1.9% for a modest overall decline of 0.8%.
Radio’s share of the local ad pie in 2019 will total 10.0%, according to a preview of the latest BIA forecast. It predicts over-the-air radio will capture 8.9% of the local ad market with another 1.1% share attributed to online radio. “Traditional media will maintain noticeable share,” BIA senior economist Mark Fratrik said during the firm’s “Share Of Ad Wallet” webinar Thursday.
Online/digital’s share of local advertising continues to increase substantially. Yet radio plays in that still-expanding arena. “Legacy traditional companies are becoming less traditional with each passing year," Fratrik said.
As stations finalize budgets for 2019, the new BIA forecast provides a roadmap for where the biggest opportunities await. Six key categories will account for 70% to 80% of total local advertising in 2019. Retail advertising tops the list with 19.2% of total local ad dollars and a 4.5% growth rate in 2019. Financial/insurance, a category with a lot of momentum at radio, is second with 12.0% market share and 6.5% growth rate, followed by general services advertising (11.7% share, 5.5% growth), automotive (11.6% share, 5.5% growth) and restaurants (11.3% share, 7.5% growth).