• Cumulus/Westwood One Blog Post Rounds Up Predictions For Audio Revenues, Growth

    November 23, 2021 at 11:10 AM (PT)
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    Forecast

    CUMULUS MEDIA and WESTWOOD ONE's AUDIO ACTIVE GROUP has rounded up some revenue forecasts and key trends for the coming year, and Chief Insights Officer PIERRE BOUVARD offers highlights from the aggregated predictions in a post at the company's blog.

    Takeaways include KATZ MEDIA GROUP CEO MARK GRAY predicting 5-6% growth for national spot revenues (excluding digital and political); DENTSU Chief Product Officer DOUG RAY calling for a 10% increase in audio revenue, driven mostly by podcasts and streaming; PQ MEDIA's pessimistic prediction that total audio ad spend won't recover to 2019 levels until 2023; MAGNA predicting a 6% increase in ad spend for radio in 2022 and insisting that "demand is returning to radio”; BIA/KELSEY VP/Chief Economist MARK FRATRIK putting AM/FM radio's 2022 growth at 8% to reach $13.4 billion, with $1.9 billion of that attributed to digital; B. RILEY SECURITIES Equity Research Analyst/Media & Communications DANIEL DAY looking for sequential growth in spot radio revenue and “robust" digital performance with political especially strong; eMARKETER looking at 11% digital audio revenue growth and 6% AM/FM radio growth; and the IAB and PwC forecasting 31% growth for podcast advertising to $1.7 billion in 2022.

    In addition, local AM/FM radio is hoping for a surge in spending from travel, entertainment, and retail with more of those businesses reopening; network radio is seeing trending increases for insurance, financial, pharmaceutical, B-to-B, recruitment, restaurants, government, and automotive. BOUVARD points to AM/FM radio being "discovered" as a major agent for ad spend lift for more brands using radio to boost their TV campaigns, citing NIELSEN Media Impact figures showing a big lift for a GM campaign by shifting some TV dollars to radio.

    More predictions, some based on EDISON RESEARCH's Share of Ear study, include continued recovery for AM/FM radio, podcasts to reach 50% of AMERICA, stagnation for SPOTIFY and "freefall" for PANDORA, and growth for AM/FM streaming.

    Read the blog post here.

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