According to BIA/Kelsey’s Media Ad View Plus, radio garnered nearly $14.7 billion in advertising revenue in 2012, representing over 11% of total advertising spend, placing it in fourth place behind direct mail, newspaper and television.
Unlike other media, radio advertising is quite diverse, generating 10% or more of its advertising from five different verticals. Retail (18%), Financial/Insurance (17%), Restaurants (14.5%), Automotive (14%), and Technology (10%) accounted for almost 3/4 of advertising on radio in 2012.
Diving into the top vertical, Retail, warehouse clubs and supercenters accounted for the largest share of retail advertising, 22.7%, just as it was in other media I’ve discussed, such as newspaper and direct mail.
Three out of eleven subcategories accounted for a combined 67% of the advertising spend in the financial/insurance category: commercial banking, securities brokerage and auto insurance.
Media Ad View Plus breaks the restaurant category into seven subcategories. Three of these subcategories accounted for 83.5% of advertising revenue in this category for radio: full-service restaurants, supermarkets and other grocery stores (not including convenience stores) and quick-service/fast food restaurants.
In the Technology category, the wired telecommunications carriers and wireless telecommunications carriers (except satellite) accounted for a combined 72% of the advertising spend in the category.
BIA/Kelsey projects radio advertising revenue to increase at a compound annual growth rate (CAGR) of 2.85% from 2012 through 2017. In 2017, radio advertising is projected to reach nearly $16.9 billion, representing 11.4% of total advertising spend for the year. Retail, financial/insurance, restaurants, automotive and technology are expected to remain the top categories for radio advertising spending in 2017.
More information on Media Ad View Plus is available here.