BIA Radio Market Report: Digital Revenue Grows, Spot Sales Plateaus

Revenue Report

BIA ADVISORY SERVICES’ 2019 Investing In Radio Market Report found that Digital advertising platforms at local radio stations led revenue growth across the industry last year, rising 8.1% to $923 million.

In comparison, over-the-air advertising dipped 1.6% to $13.3 billion. Combined 2018 revenues of $14.2 billion positioned radio as the fifth most significant local advertising platform, behind direct mail, mobile, online/digital, and local television. 

For the top-10 billing stations in 2018, WTOP/WASHINGTON, D.C. maintained the top spot with $69 million in advertising revenue. Top 40 KIIS/LOS ANGELES held in second at $61 million, while Hot AC KBIG/LOS ANGELES rose to third with $46 million. AC WLTW (LITE FM)/NEW YORK moved to fourth with $44 million, nudging ahead of Top 40 WHTZ (Z100)/NEW YORK at $42 million. 

“Although local radio stations are still important players in their markets and are managing to maintain their position in the top five advertising platforms, we do expect the OTA advertising revenue of U.S. radio stations to decrease this year by 1-2% and through the next few years,” BIA ADVISORY SERVICES SVP/Chief Economist MARK FRATRIK said, predicting that combined radio revenues will remain relatively flat for at least the next five years, while digital platforms will hit $1 billion by 2020.

Following a strong year of transactions in 2017 (due to ENTERCOM acquiring the CBS radio stations in 2017), 2018's volume was down to a level similar to previous years, with 609 stations being sold at an estimated value of $745 million. “If there is some regulatory relief at the FCC, we would expect the number and dollar volume of radio station sales to increase,” said FRATRIK.

« see more Net News