Industry News

BIA Advisory: U.S. Local Ad Revenue Estimate Lowered

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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.”

Industry News

BIA Advisory Services: WTOP-FM Top Biller in 2022

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BIA Advisory Services announces that in the first edition of its Investing In Radio® Market Report for 2023, that the top billing radio station in 2022 was Hubbard Broadcasting’s all-news WTOP-FM, Washington ($69 million). It also reports that the total U.S. local radio over-the-air and digital revenue for 2022 topped $13.6 billion in 2022, an increase of 7.4% over the $12.6 billion total in 2021. Over-the-air advertising grew 2.2% to $11 billion (up from $10.7 billion in 2021) and digital income rose 35% to $2.6 billion (up from $1.9 billion in 2021). BIA VP of forecasting Nicole Ovadia says, “Looking at last year’s ad revenue results, it shows that radio is maintaining an important position in their local markets, particularly as it expands and improves its online digital presence. This year, we are making a particular effort to track the digital revenue of local radio stations and believe this breakout in our forecast will be valuable to everyone in the industry.” The BIA report notes that, aside from WTOP, “other all-news stations struggled.” Compared to last year’s list, Audacy’s all-news WBBM-AM/WCFO-FM dropped to the number nine position and WCBS-AM, New York dropped to the 11th position. New to the top 10 list is Cox Media Group’s news/talk WSB-AM/WSBB-FM, Atlanta ($31.6 million).