Radio Industry Takes Big Hit in 2020 Due to Cuts in Ad Spending
The radio industry took a big hit in 2020 due to the pandemic and subsequent cutbacks in overall ad spending. 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 demonstrated their continued strength, though, posting 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 and Chief Economist, BIA Advisory Services.
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.
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