BIA/Kelsey Report Examines Local Radio In 2016 And Beyond
June 27, 2016 at 3:21 AM (PT)
In a new report from BIA/KELSEY titles "State Of The Industry - The Position of Local Radio Stations: Trends for 2016 & Beyond, the company writes, "Although local radio stations have faced an onslaught of new competitors for years, they remain an important part of the local media marketplace. Promoting a new or existing service or product usually requires a multimedia advertising program, including audio messages. Local radio stations still reach a vast majority of their audiences during the week, but those listeners have many more options available to them. Additionally, advertisers have multiple platforms (audio and other formats) from which to choose to relay their messages.
"As a result, local radio stations in recent years have seen meager increases in total industry revenues and even some slight decreases in over-the-air advertising revenues. At the same time, revenues they generate through other activities have increased substantially in terms of percentage changes. Many radio stations have recognized that they need to broaden their reach in their local communities and be more than just over-the-air broadcasters."
The report notes that throughout nearly a century of operating, commercial radio has faced an array of challenges — from initially convincing local and national advertisers that airing audio advertisements would work, to combating over-the-air television and then cable television, to the most recent entry of online/digital audio consumer options. Growing competition affects the level of usage of local radio stations, which also face increasing challenges in the local advertising marketplace in which they operate. Smaller audiences and the slowing of over-the-air advertising revenue growth have led to decreases in the values of local radio stations and the public companies that own them.
BIA/KELSEY's opinion is that, "despite these challenges, the radio industry maintains a prominent position, both for listeners and advertisers, in the local marketplace."