Radio may be 100 years old, but it’s one of the new things local advertisers say they’re trying this year. While rediscovering radio is probably a better description of what’s occurring, Borrell Research says AM/FM sits alongside digital channels like search engines and social media marketing as having caught the attention of small and medium-sized businesses.
A sizable chunk of dollars is up for grabs. In its latest “Chart of the Week” series, Borrell says 41% of local ad buyers said in the firm’s spring survey that they’re trying something new this year.
“Advertisers are mixing things up. In fact, 62% of advertisers are either adding something new into the mix or they’re spending more on something that they used in the past. This is fantastic news for sellers,” says Elizabeth Bernberg, Senior Director of Business Development at AdCellerant, which partnered with Borrell on the data. “Gone are the days when you needed a really crazy compelling pitch, and perhaps even a tire iron, to pry money from preset budgets at mid-year,” she says on a video presenting the findings.
Bernberg says mobile text message ads may be the number one new thing that local advertisers say they’re trying this year, but traditional media like AM/FM and outdoor advertising also make the list. “It is super encouraging to see these long established, established forms of media really still attracting advertisers and that spend,” she says.
Borrell’s survey also found that 46% of local advertisers said they’re increasing spending for at least one of the types of media they use. Tops on that list is social media marketing, followed by search engine marketing, banner ads, event sponsorships, and direct mail — areas where many local radio sales reps today have an opportunity to sell into as part of their digital marketing packages.
Borrell’s updated 2024 Local Ad Outlook released in June expects total local ad spending to climb 3.2% this year. While it expects radio to post a 2.3% decline in over-the-air ad revenue, Borrell is forecasting that online audio will help make up the difference, with streaming radio and podcasting ad spending expected to increase 7.8% vs. a year ago to hit $1.2 billion. That is the second largest growth area, second to the growth forecast for online listings, which encompasses sites for cars, jobs, merchandise, real estate, and services.
The steepest declines are pegged for yellow pages (-14.3%), untargeted banner advertising (-8.4%), print newspapers (-6.7%) and cable TV (-6%). Longer range, Borrell sees local advertising growing at a 2.2% clip over the next five years.
Comments