For the radio, “The recovery should be ephemeral and partial”

Posted: August 31, 2022

U.S. broadcast, television and radio stations are expected to generate $36.47 billion in advertising revenue this year, up 12.9% from 2021, according to the new annual outlook from S&P Global Market Intelligence Radio & TV.

He said radio station advertising activity is specifically expected to “rebound post-pandemic and receive increased political ad spending over the medium term, although to a lesser extent than television,” and grow 4.8% to $12.32 billion, off-grid and off-grid. airline receipts.

However, “the recovery is expected to be short-lived and partial as national advertising continues to shift from radio to audio streaming and podcasting alternatives,” S&P Global wrote.

On radio and television, “major ad categories have mostly rebounded to pre-pandemic levels, with the exception of automotive, retail and travel categories, which are still soft,” he said.

The research firm noted the impact on radio of competition from streaming and on-demand audio as well as a damper on listening to hybrid or work-from-home models of the economy, which have reduced travel times.

“The core radio local spot advertising market is expected to grow 5% to $8.83 billion in 2022 and 3% to $9.10 billion in 2023, with growth rates stabilizing and then declining slightly over the remaining forecast period to reach $9.03 billion by 2027,” it projected.

“Policy-driven national radio advertising revenue is projected to increase 3% to $2.07 billion in 2022 and 1.5% to $2.11 billion in 2023, level off in 2024 and then begin to decline. from 1% to 2% in the remaining years in the forecast period to $2 billion by 2027.”

The company projects digital gains for radio of 6% in 2022 and 4.8% in 2023 and a range of 4.3% to 3.8% over the remainder of the period to 2027.

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“Radio station owners continue to invest in streaming, podcast and digital marketing initiatives, with digital revenues expected to reach $1.73 billion by the end of 2027. Off-air is expected to grow 4% in 2022 and 3% in 2023 with the return of live events and is expected to remain a strong segment for the radio industry in the long term, reaching $2.42 billion by the end of 2027. »

He said radio’s lower advertising cost, local audience and relatively high return on investment will keep it relevant. But total radio revenues are expected to be essentially flat for the five-year period.

The report also listed the fastest growing markets for radio revenue over the next five years as Dallas/Fort Worth; Seattle/Tacoma; Boise, Idaho; Salt Lake City-Ogden-Provo, Utah; and Atlanta.

The table below is taken from the report.