The COVID-19 pandemic significantly impacted how people listened to radio. Millions of workers who used to tune in to local radio during their commutes were forced to stay home, leading to a sudden drop in listenership.
At the same time, businesses cut back on advertising spending, further hurting the radio industry.
Unlike other sectors that have fully recovered, traditional radio is still struggling. According to an analysis from Seeking Alpha, this is partly because advertisers are increasingly shifting their budgets to digital platforms, which offer them better targeting, measurement, and reporting tools.
The radio station business is forecasted to decline in the next few years, although at a relatively slow pace.
S&P Kagan Research can help us understand and visualize the headwinds in the industry:
Kagan Research projects a decline in US radio ad revenue of 0.9% to $11.86 billion in 2024. That is roughly $1 billion higher than radio ad revenue in the pandemic ad recession of 2020 but still approximately $2 billion lower than pre-pandemic levels.
On the positive side, radio advertising remains a powerful tool for reaching audiences, as “radio's lower ad cost, community outreach and relatively high return on investment compared to other media should help maintain its ad share in its local markets”.
No comments:
Post a Comment