Chantilly, VA - Apr 28, 2014 - In its newly released U.S. Local Media Forecast (2013-2018), BIA/Kelsey forecasts local media advertising revenues to climb from $133.2 billion in 2013 to $158.6 billion in 2018, representing a compound annual growth rate (CAGR) of 3.6 percent. Digital media continues to increase its share of total local media revenues, growing from $31.7 billion (23 percent) in 2014 to $52.7 billion (33.2 percent) in 2018.
BIA/Kelsey expects revenue from traditional media, in aggregate, to slightly increase from $105.3 billion in 2013 to $105.9 billion in 2018 (CAGR: 0.1 percent). As expected, the political ad spend cycle contributes to a drop in revenues in odd-numbered years. Despite the year-over-year political advertising seesaw effect, traditional media revenues remain remarkably steady throughout the forecast period.
Radio advertising accounted for 11.1 percent of the total $133.2 billion spent in 2013 (direct mail, newspapers, and TV led the category). The primary sources of revenue for local radio in 2013 were automobile d ($1.438 billion), wireless telecommunications ($650.8 million), and full-service restaurants ($647.8 million). Based on changes in the overall local media marketplace, BIA/Kelsey estimates that the overall local media market will grow faster than previously thought through 2018. By 2018, the total will be $158.6 billion, of which $16.7 billion - or 10.5 percent - will go to local radio.