A new local radio advertising estimate shows there will be a sharp 10.7% decline in revenue for 2020 versus 2019, due to issues around COVID-19.
BIA Advisory Services now says U.S. local radio will grow to $12.8 billion this year -- down from $14.1 billion in 2019.
The new forecast breaks down to $11.4 billion in over-the-air revenue and $1.4 billion for digital. An earlier BIA forecast estimated overall local radio revenue would inch up 1.4% this year to $14.3 billion.
This would mean two years in a row of local radio declines, with 2019 declining 1.6% from the total in 2018. A year ago, local radio stations pulled in $12.8 billion in over-the-air revenue and just over $1 billion in digital.
Next year, local radio should see growth -- up 8.5% to $13.9 billion.
Advertising category estimates this year show finance/insurance marketers spending $2.0 billion on local radio, with retail at $1.97 billion; automotive, $1.5 billion; and technology, $1.3 billion.