Earlier this year BIA Advisories noted a decline in radio revenue due to the COVID 19 pandemic. Recently, BIA updated this information noting a further decline in revenue. On the plus side, online listening of radio stations has increased. BIA concluded:
“BIA Advisory Services has reduced its early second quarter 2020 forecast for U.S. local radio advertising due to the impact of the pandemic on the national economy. The new revenue estimate is $12.8 billion, broken down to $11.4 billion for over-the-air revenue and $1.4 billion for digital revenue (including local advertising sold by streaming companies), compared with the $14.3 billion combined forecast earlier this year.
By comparison, in 2019 local radio stations generated $12.8 billion in over-the-air revenue and just over $1 billion in digital. This was a -1.6 percent decrease in total revenue from 2018. The 2020 revenue estimate indicates a -10.7 percent decrease in over the air advertising revenue from 2019. One area of growth for radio is in digital. According to the latest Share of Ear® update from Edison Research, a portion of AM/FM radio listening online hit 10 percent for the first time in May.”
To see BIA’s analysis click HERE.
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