According to the first quarter edition of BIA Advisory Services‘ 2021 Investing In Radio Market Report, over-the-air advertising revenues dropped to $9.7 billion, a 23.6 percent decline from $12.8 billion in 2019. Digital ad revenues at stations posted only a slight decline to $939 million in revenues in 2020 versus $1 billion in 2019.
“Local radio stations have been feeling the impact of new competition for the past few years; unfortunately, the pandemic just exacerbated the problem and it will take some time to recover,” said Mark Fratrik, SVP/Chief Economist for BIA Advisory Services. “The shining star continues to be radio’s online digital advertising revenues, which will outpace over-the-air growth this year and moving forward. Those broadcasting groups that have invested-in and oriented their companies toward digital will benefit faster from that foresight.”
Fratrik forecasts 2021 total local radio revenues to reach $11.7 billion, with $1 billion coming directly from online revenues; a 9.7 percent increase over 2020.
