The newly released S&P Global Market Intelligence Radio & TV Annual Outlook from Kagan finds some good news in this year's ad-revenue outlook and some not-so-good news for the next five years, as core advertising categories continue to slump.
RVTech reports the study forecasts that U.S. TV and radio stations will end up reaching $36.19 billion in total advertising revenue in 2024, up 9.3% from $33.10 billion in 2023, primarily from the influx of record political ad spending in a presidential election year.
S&P Global Market Intelligence Kagan's 2024 projection also shows $24.95 billion from TV stations — including core national and local spot, political and digital/online — and $11.24 billion from radio stations, which includes national and local spot and digital, excluding network and off-air.
However, the report predicts negative growth for TV advertising over the next five years as traditional media continues to lose advertising share.
Amid those declines, the report finds that the local ad market continues to be stronger than the national side of the spot ad business, thanks to broadcast stations’ close ties with the local community.
That will help stations as ad agencies and major brands continue to shift budgets to digital-native platforms as more content moves from linear to streaming.
Even so, core ad categories, including automotive, retail and travel, have continued to see softness due to high interest rates and inflationary pressures dampening consumer spending on big-ticket items. Pharmaceuticals, telecom and professional services continue to outperform other ad categories.
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