Podcasters are sure to benefit from what will be another growth year in streaming audio advertising spending next year. In fact Borrell Associates, the media research and consulting firm, says no other digital media segment will grow faster. It forecasts streaming audio local ad spending will increase 17.1% next year.
“We see growth in streaming audio and streaming video as the internet becomes a lot more multimedia. It’s becoming less a media that’s just read and more of a media that’s watched and listened to,” firm CEO Gordon Borrell said Wednesday on a webinar.
The firm released its outlook for how three of the biggest local ad categories will spend their money in 2020 and it showed strong growth for the streaming audio segment. Borrell predicts local auto dealers will boost their streaming audio ad budgets 19.3% next year to $110.4 million. Real estate spending on streaming audio is forecast to increase 17.7% to $124.1 million. And home improvement retailers will increase their streaming audio ad budgets by an estimated 11.3% to $33.2 million.
Overall, Borrell analysts forecast local advertising revenue will grow 1.3% to $129.7 billion in 2020. “That is fairly small,” Borrell said. And in the latest signal that total digital advertising is decelerating, the Borrell number crunchers see a digital ad slowdown ahead. In fact after an estimated 9.2% increase in ad revenue this year, digital is forecast to grow by just 4.9% in 2020. “Online, after about 22 years of being an advertising medium, is going to decrease in its growth rate down to single-digits this year,” he said.
Next year will be both up and down for radio, depending on whether you look at over-the-air or digital ad sales. Local revenues for over the air are forecast to decline 4.4% in 2020. But there’s an entirely different radio narrative for digital. Radio’s digital dollars will jump 27% to $1.2 billion in 2020 for the biggest percentage increase among all traditional media.
“Radio has discovered this thing called the internet and they’ve just jumped on board pretty quickly and have really remarkably driven revenue in the past year,” Borrell said. “We have seen some pretty big investments by some radio companies in digital.”
In terms of dollars, the biggest 2020 increases are projected to come in the amount of money that advertisers are spending on digital services, like mobile and social media management and search engine optimization. For stations offering more than just advertising, Borrell said it presents a growing opportunity. “This is where the money is,” he said.