BIA Advisory: U.S. Local Ad Revenue Estimate Lowered
Due to “a mixed start in the economy this year and the tempered growth in digital advertising,” BIA Advisory Services is lowering its estimated U.S. local advertising revenue for 2023 to $161.7 billion – down from its original estimate of $165.7 billion. The company says that after looking at the first six months of the year, it decided the reduction was necessary. Vice president of forecasting and analysis Nicole Ovadia says, “After years of double-digit growth, we are seeing some headwinds that will have a significant impact on digital local advertising.” BIA is now expecting digital media revenue for 2023 to be $78 billion (down from its earlier estimate of $81 billion). Radio digital revenue – ex political – is expected to rise by 4.1% over 2022. “When examining the top spending sub-verticals, BIA advises that later in the year, growth is expected in Auto, and the company is raising expectations for Tier 3 – New Car Dealers, and Automotive Repair Services. Other important verticals for local advertising where BIA is raising expectations include Savings/Credit Institutions and Other Loan Services, Plumbers and HVAC, and Realtors.”
billion and overall revenues increased $20.4 billion YoY. Q1 saw the highest growth of 21.1% followed by Q2 at 11.8%, resulting in ad revenues for the first half of the year surpassing $100 billion for the first time. Revenues slowed in Q3 (8.4%) and Q4 (4.4%).” IAB CEO David Cohen comments, “After unprecedented growth in 2021, we expected more moderation in 2022. Economic uncertainty, geo-political unrest, a shifting regulatory environment and addressability changes have all contributed to revenue growing at a slower pace. Looking ahead, there is definitely still growth to be had, but it will be harder to achieve and likely less than we have become accustomed to.”