Radio Ad Spend

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Radio Ad Spend 2020

The Traditional Broadcast Radio, Terrestrial Online Radio, and Satellite Radio categories are expected to grow in terms of ad spending in 2020. The Traditional Broadcast Radio is expected to have the slowest growth; projected to be up just 0.13% in 2020 to $15.94 billion. Satellite radio, will grow 5.81% to $182 million in 2020. Finally, the fastest growing category is Terrestrial Online Radio growing at 7.82% into 2020 up to $1.93 million.

Radio categories Expected to Grow in Ad Spending in 2020

Research Strategy

This research was conducted primarily by investigating reports on the United States radio industry and then the subsequent breakdown and analysis on these reports. The Compound Average Growth Rate was calculated using the formula CAGR = (End Value / Start Value) ^ (1 / 1) - 1.
  • Terrestrial Online Radio = ($1.93 b / $1.79 b) ^ (1 / 1) - 1 =7.82%.
  • Traditional Broadcast Radio= ($15.94 b / $15.92 b) ^ (1 / 1) - 1 =0.13%.
  • Satellite Radio Advertising = ($182 m / $172 m) ^ (1 / 1) - 1 =5.81%.
Part
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Radio Ad Spend 2019

The ad spend of traditional radio advertising in 2019 is expected to be $15.92 billion. The ad spend of terrestrial radio online advertising is $1.8 billion in 2019. The 2019 ad spend of terrestrial radio broadcast advertising was calculated to be $15.93 billion.

2019 US BROADCAST RADIO CATEGORIES AD SPEND

  • The ad spend of traditional radio advertising in 2019 is expected to be $15.92 billion.
  • The calculated 2019 CAGR of traditional radio advertising revenue is 0.13%
  • The ad spend of terrestrial radio online advertising is $1.8 billion in 2019.
  • The calculated 2019 CAGR of terrestrial radio online advertising is 8.33%.
  • The 2019 ad spend of terrestrial radio broadcast advertising was calculated to be $15.93 billion.
  • The calculated 2019 CAGR of terrestrial radio broadcast advertising is 0.16%.
  • In 2019, satellite radio ad spend is $181 million.
  • The calculated 2019 CAGR of satellite radio advertising is 3.87%.

RESEARCH STRATEGY

We started the research by looking at the US radio industry reports, since they normally provide insights into the ad spend of the various broadcast radio categories. We searched Deloitte, Biakelsey and TechNavio. We determined the ad spend, but the CAGR was not stated and we had to get creative to calculate it. The calculations are detailed below:

Calculation done

CAGR= [(Final ad spend -Initial ad spend)/ Initial ad spend x 100] / Number of years

2019 CAGR of traditional radio advertising

Ad spend in 2019= $15.92 billion
Expected ad spend in 2020= $15.94 billion
Therefore CAGR= ($15.94 billion-$15.92 billion)/ $15.92 billion x 100=0.13%

CAGR of terrestrial radio online advertising

Ad spend in 2019= $1.8 billion
Expected ad spend in 2023= $2.4 billion
CAGR= [($2.4 billion-$1.8 billion)/$1.8 billion x 100]/4= 8.33%

CAGR of terrestrial radio broadcast advertising

Ad spend in 2018= $15.9 billion
Expected ad spend in 2022= $16 billion
CAGR= [($16 billion-$15.9 billion)/$15.9 billionx100]/4= 0.16%

Therefore, ad spend in 2019= (0.16%x$15.9 billion) + $15.9 billion=$15.93 billion.

CAGR of satellite radio advertising

Ad spend in 2019= $181 million
Expected ad spend in 2023= $209 million
CAGR= [($209 million-$181 million)/$181 millionx100]/4= 3.87%

Sources
Sources