Borrell Sees 7.8% Growth For Streaming Audio In 2024 Local Ad Outlook.

Spending on streaming audio commercials — including podcasting and spots on radio station websites, apps and smart speakers — is pegged for 7.8% growth this year, according to Borrell Associates’ 2024 Local Ad Outlook.

Borrell’s forecast puts the space at $1.2 billion, giving it the second-highest growth of any format measured.

Overall Borrell expects “healthy” 3.2% growth — a slight decline from earlier estimates but still characterized as a “good year.” Longer range, Borrell foresees local advertising growing at a 2.2% CAGR over the next five years. (Individual market forecasts can be viewed HERE.)

“For the past three quarters, we haven’t seen much variation in SMBs’ attitudes about the economy and their plans to invest in advertising,” said Corey Elliott, Executive VP of Local Market Intelligence and Borrell’s chief forecaster. “They’re mostly neutral and slightly positive about the economy, but we’re still not seeing anything that would signal the bigger spring-back that many are hoping for.”

Among highlights from the forecast, Borrell sees local advertising reaching $148.9 billion, up 3.9% from 2023. The firm says the largest growth is forecast for online listings — including sites for cars, jobs, merchandise, real estate, and services.

Local ad spending is forecast to grow 8.1%, topping $20.4 billion.

Growth is also seen in targeted display advertising (driven by social media), up 6.2% to $27.2 billion, and local broadcast TV advertising, up 5.9% to $9.9 billion.

Streaming video advertising (OTT/CTV) among local buyers is expected to grow 3.9% to $23.3 billion, but the firm says it’s growing at a far slower rate than initially predicted. The scale-back in growth for streaming video was a big surprise, Elliott said in a news release.

The Yellow Pages (-14.3%), untargeted banner advertising (-8.4%), print newspapers (-6.7%) and cable TV (6%) are expected to see the steepest declines. Legacy radio is expected to fall 2.3%.

Borrell says it has also extended its long-range outlook to 2028. By then it expects local advertising to hit $161.2 billion, an 11.8% increase over 2023.