Borrell Projects Local Ad Spending Gains For 2022, But Radio's Outlook Isn't As Rosy

2022 Local Spending Projections

BORRELL's 2022 Local Advertising Forecast is out and the prediction is for an uneven recovery, with overall local ad spending showing a "healthy increase" but spending levels varying by market. The news isn't as rosy for radio, however, with BORELL projecting another spending decline, down 4.6%, one of four types of media to be projected to fall in 2022 (with print directories, newspapers, magazine, and untargeted banner ads). And radio is on the list of nine media categories that are not expected to climb back to 2019's spend levels.

BORRELL projects a 6.4% overall ad spending increase in 2022 to $138.9 billion, almost two points higher than the Compound Annual Growth Rate (CAGR) for local advertising over the past five years. 2021's growth is projected at 9.9%.

“Because COVID recovery varies by state and by locality, not every market will participate in the bliss,” said EVP/Market Intelligence COREY ELLIOTT. “Some markets have been devastated by business closings, which depresses advertising. Other markets have rolled along without much of a hiccup and have even seen some significant growth in new business creation.” He also pointed to other factors, including unemployment or natural disasters, as affecting individual markets' performance. “Simply put,” added ELLIOTT, “some areas came back faster in 2021 and thus will see modest growth in 2022, while others are still recovering this year and won’t see more explosive growth until 2022.”

The company has scheduled a webinar to discuss the study on OCTOBER 12th at 11a (ET); register for the webinar here.

« see more Net News