Zenith’s just-published Advertising Expenditure Forecasts report for June 2022 shows radio ad spend in a continuing growth mode since COVID-impacted 2020, with predicted spend for this year at $14.8 billion, up 6.6% from 2021 and 16.9% from 2020, although off 15.9% from pre-pandemic 2019. Local accounts for 94% of total radio ad spend, even with where it was in 2021.
Radio's share of total major media ad spend – which also includes internet, television, out-of-home, magazines, newspapers and cinema – is expected to be 4.6% in 2022, according to Zenith. That's good for third-most in ad spend behind internet's 67.1% and TV's 20.3%, and ahead of out-of-home's 2.9%. Looking in the crystal ball at Presidential election year 2024, radio is expected to grow another 4.6% to $15.5 billion, good for 4.3% of major media ad spend.
Zenith's global forecast predicts radio ad pricing to be up nearly 4% in 2022. That's even with out-of-home media, under online video's 7% and well behind TV's 11-13% boost, while ahead of digital's 3% and no price change for print media.
From that global standpoint, total ad spend is expected to increase 8% to $781 billion, driven by 12% growth in North America. Online video and social media are expected to be key growth areas, with ad spend up 15% annually for each through 2024. Zenith sees this growth coming from the Winter Olympics, America's mid-term elections and soccer's World Cup, the latter of which will for the first time take place in the most ad-intensive period of the year, in the run-up to Christmas.
“Ad spend has remained on track despite the macroeconomic headwinds that emerged this year,” Zenith's forecasts says. “High inflation is forcing consumers to reprioritize their spending, particularly the less well-off, and has led to a drop in consumer confidence. But for now, consumer spending continues to grow, as consumers demonstrate their strong appetite for the travel and entertainment experiences that were denied to them over the pandemic. Business confidence is generally high, and corporate investment is rising, and there is little evidence of widespread cost-cutting.”
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