BIA Forecasts : Double Digit Growth For Online Radio

As the online radio audience continues to grow and broadcasters and web pureplays amp up investments in original digital audio content, advertisers are following the audience, reports InsideRadio.

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.

Mark Fratrik

Over-the-air television will capture 11.8% of the local ad market next year, with another 0.9% coming from online television and cable getting 4.0%. Online/interactive will account for 14% of the local market.

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).