Rough Ad Growth Ahead For Radio?


Are advertisers still cool on AM and FM radio stations? Do they consider radio’s ROI delivery a relic of the past, when radios such the one pictured ruled the nightstand in one’s home bedroom?

MAGNA Global’s Advertising Forecasts Spring Update, released today, suggests that’s the case. Not only is local broadcast TV sputtering, but broadcast radio ad revenue is sliding — and at a rapid rate.

Broadcast Radio started off 2017 with low demand from advertisers.

This low demand was seen across the board, and spanned a variety of spending categories such as Automotive, the fourth-largest category.

Auto dollars plummeted 14% in Q1.

Meanwhile, Finance & Insurance — the second-largest category — dipped 9%. The Restaurant category is off 12%.

As a result, ad sales for Broadcast Radio declined by 4% in the quarter.

Based on those results, MAGNA now expects broadcast linear radio ad sales to decline by 4.4% for 2017, to $13.4 billion.

This reflects an acceleration of the 3% decrease experienced in 2016.

Worse yet, MAGNA — without elaborating in its 17-page TV and digital-heavy report — expects a similar drop in Broadcast Radio revenue in 2018.