As we roll into the new year, the local radio station can turn an optimistic eye to revenue opportunities. As a partner to radio stations all over the country, I always enjoy discussing what a powerful and vital medium radio is for advertising. While many stations have diversified their offerings with digital, radio remains at the heart of local advertising. The overall outlook for 2024 demonstrate its staying power, too.
Since our audience is radio stations, we always look for ways to share trends and information. This year, we’ve created an animated infographic that provides a data-driven story regarding what to expect for radio revenue in 2024. Here are a few highlights to share.
Advertisers Continue to Have Misconceptions About Radio’s Reach and Value
Correcting these erroneous beliefs can be a challenge for any local media seller. Luckily, we have plenty of data and studies from groups like MFM, the RAB and many others that dispel these. Broadcast radio has the greatest reach of any audio type. It ranks first in ad-supported media, outperforming streaming. People from every generation and demographic are regular listeners. We’re constantly working to deliver these insights so the industry can leverage them to clear up these misconceptions.
Many Trends Impact Ad Spend
Economics, consumer preferences and other trends impact radio ad spending just like any other tactic. We do know that the economy had remarkable stability and growth in 2023, and economists predict continued inflation and GDP growth reductions.
Consumer confidence has also been strong. Many have felt the effects of inflation, but they are still spending. Adding context to the expert predictions is important because they focus on Wall Street, while radio operates more on Main Street. Each market has its own challenges, and economic uncertainty is and will always be an influencer.
All these factors roll into projections, and their impact will be mostly positive.
The Numbers: What Will Stations Generate in 2024?
We reviewed a lot of data from the industry and presented three different projections from BIA Advisory Services, S&P Global Market Intelligence and Insider Intelligence. They range from $5.67 billion to $10.49 billion. The variation is due to how the analysts define radio revenue, methodology and data sources, but they are all specific to spot dollars.
Fueling the upticks in revenue is the fact that companies plan to spend more money on media advertising overall in 2024. A study concluded that 57% of radio ad buyers will maintain budgets, while 14% will increase them. So, who are the big spenders?
Radio Ad Spending: Who’s Investing?
The conversation on 2024 radio ad revenue starts with this being a political year. Hundreds of millions of dollars will flow into broadcast radio for the 2024 election. Even though it’s a national race year, most buys will be at the local and state level for candidates, including those for president.
Politics isn’t the only area that will see more spending. We reviewed analyst predictions to pinpoint other industries that are a good bet for increased radio ad spend:
- Retail
- Real estate
- Automotive
- Financial services
- Health care
The infographic offers insights and specifics on these industries and their radio spending projections.
Radio Is Resilient and Positioned to Drive Revenue in 2024
You simply cannot count radio out — it has played a key role in the world for more than 100 years. It informs, inspires and connects. Recent research has noted that radio outperforms video in terms of engagement and attentiveness. It should be a piece of any advertising campaign, perfectly complementing digital and O&O. We believe in the future of radio and its staying power.
Dive into the data and details by viewing the 2024 Radio Revenue Outlook infographic.
This article was written by Todd Kalman, Senior Vice President of Sales at Marketron. He oversees revenue development and sales, partnering with radio stations to help them grow with Marketron’s technology.
Posted at MediaVillage through the Thought Leadership self-publishing platform.
Click the social buttons to share this story with colleagues and friends.
The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.