BIA/Kelsey: Online/digital powers local revenue growth

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Issue Date: 
Nov 19 2013 - 12:00pm

From Issue:

BIA/Kelsey today released its Annual U.S. Local Media Forecast for the next four years, with data covering 2012-2017. In it, two pillars of local-media revenue growth are identified: digital, and mobile. Traditional revenue (such as over-the-air and print) are forecast to remain essentially flat.

The report’s top-line forecast is bullish. Local media revenue growth is predicted to pace at a compound annual growth rate (CAGR) of 2.8 percent. That forecast maps dollars to grow from $132.9-billion to $151.5-billion after four years. The growth is driven by an optimistic online/digital forecast, which sees that revenue segment growing at a CAGR clip of 13.8 percent. Traditional ad revenues will experience fractional growth during the period, with an annual growth rate of one-tenth of a percent.

At a quick glance, the report might seem uninspiring for radio, whose participation on the digital side rises from 0.4 percent to 0.5 percent. But Mark Fratrik, Chief Economist at BIA/Kelsey, refutes that as a gloss: “It’s a half percent of the total advertising marketplace. The total marketplace [will experience] about a $19B increase. Radio will have a higher percentage of a larger pie.”

Doing the arithmetic, a slightly larger portion of a much bigger pie translates to substantial dollars. Radio’s ownership of the 2013 digital pie is worth approximately $532-million, and radio’s slightly increased share of the larger 2017 pie will be worth about $758-million. That dollar growth over the four-year period is 42 percent.

Talking to RAIN this morning, Fratrik emphasized the lumpiness of a radio industry which unevenly pursues digital-revenue opportunities.

“Some radio companies are much more aggressive than others at generating digital, online revenues. The increase of digital share is good news, [and] there are some broadcasters who are doing better than that. Any radio station has the potential to do better [than the forecast numbers]. Radio has assets that many other media companies covet. The local content, the local sales staff, and relationships with local advertisers.”


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The news of the local media forecast shared here is very informative. From the graph, we can understand the changes that happened in each year and is very clear. There occurred a steady growth during the year 2017. And the rate is also increased. Paris City Tour Guide

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It seems the revenue of digital media is increasing day by day. This is a helpful info you have shared here thank you.
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The development is motivated by an positive online/digital prediction, which recognizes that income section increasing the improve of electronic discuss is great information, and there are some tv stations who are doing better than that. Any stereo place has the prospective to do better [than the prediction numbers

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It is really a shocking a chart the local media revenue will be more than $150 in 2017 oh mine. Hexder Online Store

This is great news for the

This is great news for the local industry. It only shows that music is now a big commercial products. - Charles Brennan

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