Radio: The Last Bastion of Legacy Media Strength
To those of us who have always been believers in radio, as those in the industry know I've been, it's not a shock that radio is emerging as the only legacy (i.e., pre-digital) medium that's emerging as a growth medium. Overall, The Myers Report projects 3.7% annual audio ad spending growth between 2020 and 2025 (factoring in COVID-19 related impact). Unlike other legacy media that generate 15 to 25 cents in digital ad revenue for every linear/legacy ad dollar lost, the local radio station business is forecast to generate estimated $1.30 in digital revenue for every linear dollar lost.
It's difficult to overestimate how important an economic threshold radio has achieved. While, our forecast reflects a decline in linear radio revenues of 8.9% in 2025 annual revenues versus 2019, compared to network television and print-based media, linear radio is demonstrating remarkable resilience. Led by podcasting investments, an emphasis on localism and brand personality, renewed advertiser interest in audio as a communications platform, plus nimble response to technology threats, the radio industry is overcoming two decades of negative trade reporting, financial challenges, and technological threats and is emerging as a rare economic winner in the advertising landscape.
Total audio advertising is projected by The Myers Report to increase 24% in 2025 versus 2019 ad investments, with digital audio and podcasting 2025 ad revenues projected to grow 84% and 195%, respectively, over 2019 revenues. Local broadcast and cable TV advertising are also proving to be on comparatively solid footing, declining (-9.6)% and (-3.5)% in 2025 versus 2019 annual ad revenues.
Out-of-home is also strengthening and will be the subject of a future report. All linear/legacy ad spending is projected to decline an average (-6.7%) annually with annual total digital ad spend increasing (+4.8%) 2020-2025. Refer to previously published data on the economic outlook for print and broadcast/cable network advertising atMyersReports.com.
For more data and analytics visit www.MyersReport.com. The Myers Report's detailed data and forecasts will soon be available to MediaVillage member companies at www.MyersReports.com. Members may contact maryann@mediavillage.com to request password access.
Jack Myers
With over five decades of experience in corporate leadership, B2B research, management insights, and technological trends, Jack Myers is a visionary leader and a trusted source for guidance and preparation as generative AI and machine intelligence dominates …
