Traditional Radio to Maintain Position in Local Media Market

Local radio companies continue to invest new ways to help their clients reach the growing digital audience. But, they continue to do well in the radiodjtraditional ad market as well. BIA/​Kelsey analysts report that these companies are winning the battle against new national upstarts by broadening listener experiences. They're also expanding the types of opportunities that are available to advertisers. In 2014, radio operators will continue to lean heavily on key industries to maintain their share of the local ad market.

BIA/​Kelsey measures the local ad market at $132.7 billion for 2013.  From a radio station perspective, this market includes “all of the media that local radio stations compete against for national and local advertising spending in their markets.” Radio stations are doing well according to the last BIA/​Kelsey analysis which says the local market breaks out this this:

  • Direct mail 27.2%
  • Newspapers, 16.1%
  • TV 14.9%
  • Radio 11.5%
  • Cable 5.4%
  • OOH 5.8%
  • Yellow pages 5.1%
  • Online/​Interactive 8.6%
  • Mobile/​ERPM 3.1%

Radio stations can build their market share by focusing on their best clients. Top contributors to the bottom line of any local radio station are retailers (18% of total industry revenue) and finance/​insurance enterprises (17%). The study shows that 14.3% of all financial and insurance company ad spending is directed to local radio. A similar amount, 12.1%, of all restaurant ad money is all spent on local radio campaigns. Not surprisingly, restaurants contribute 14.5% to the bottom line for local radio stations. Other top contributors are automotive (14%) and tech companies (10%).

As you talk with your clients about their radio ad campaigns, check out the psychographic data for heavy radio listeners in the AudienceSCAN report available on the Research Store at ad​-ology​.com.

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.