Economic Outlook for Radio Unclear, Says BIA
Radio's future remains unclear, said BIA Advisory Services Chief Economist Mark Fratrik in a Tuesday webinar his firm hosted. The economy and local advertising showed signs of improvement in May and June as states and localities reopened, but recent surges…
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in COVID-19 cases could “put a stop sign on recovery,” Fratrik said. Ad trends tend to lag slightly behind the broader economy, said BIA Managing Director Rick Ducey. Pandemic economic issues also affect regions differently, so a station’s outlook can depend on its market, Fratrik said. Radio is slowly reclaiming its audience reach, Fratrik said. Its audience reach numbers are overall 95% of March, he said. Drive-time listening numbers are down because of a drop in commuting, but midday numbers are up from listeners working from home, he said. Stations shouldn’t expect much of a boost from political commercials because radio traditionally isn't a main outlet for political spots, Fratrik said. That could change this year as campaigns look for replacements for in-person political rallies, said Mark Levy, president of Revenue Development Resources. Money that would have gone to campaign branded merchandise for such rallies or for donor luncheons could get snapped up by radio, he said.