Strengthened by Political Season, BIA Projects $175.6 Billion in 2024 Local Advertising Marketplace Spending
Impact of Global Economy Expected to Keep Most Business Categories Down; Without political the increase…
CHANTILLY, Va. (Oct. 26, 2016) – In its new U.S. Local Advertising Forecast 2017, BIA/Kelsey, the leader in broadcasting and local advertising research and valuations, projects total local advertising revenues in the U.S. to reach $148.8 billion in 2017, up from $145.2 billion this year, representing a growth rate of 2.4 percent. If political advertising was excluded, the growth rate would be 3.9 percent for 2017. BIA/Kelsey defines local advertising as all advertising platforms that provide access to local audiences for national, regional and local marketers.
Faster growth in online/digital advertising revenues is a major component of the projected increases in the overall local advertising pie. BIA/Kelsey estimates online/digital will increase at 13.5 percent, from $44.2 billion in 2016 to $50.2 billion in 2017. That compares with a decrease of 2.4 percent next year for traditional – print and over-the-air – advertising revenues, going from $101.1 billion in 2016 to $98.6 billion in 2017.
“A range of factors will drive local ad revenues higher in 2017 and through the end of the next year,” said Mark Fratrik, SVP and chief economist at BIA/Kelsey. “An improving U.S. economy, increased spending by national brands in local media channels, extraordinary growth in mobile and social advertising, and the continued expansion and selection of online/digital advertising platforms. In fact, we are predicting that online/digital local ad share will exceed the share of print media by 2018.”
Online/digital revenues are generated by online companies that sell locally targeted advertising that includes display, search and classified/vertical advertising. The advertisements are sold by local pure-play online companies, national online companies offering geo-targeted advertising, and local traditional media groups’ online/digital efforts.
The forecast examines the growth and opportunities in the different areas of online/digital:
BIA/Kelsey will present findings from the local online/digital segment of the forecast at its upcoming conference, BIA/Kelsey NEXT: The Future of Local Digital Advertising and Marketing, which takes place December 5-7, 2016, in Boston. Visit https://www.bia.com/NEXT2016 for complete conference information, including the agenda, speakers and online registration.
About the BIA/Kelsey U.S. Local Advertising Forecast 2017
The BIA/Kelsey U.S. Local Advertising Forecast 2017 is a five-year forecast that draws from proprietary data; company, industry and country information in the public domain; and discussions with clients and non-clients about the direction and pace of development in the local media marketplace. The forecast is issued annually each fall to preview the upcoming year and is updated in the following spring.
Contents of the forecast include a national overview of total U.S. spending in local markets and a forecast for each individual media breakouts for direct mail, local video, local over-the-air television, local cable television, out-of-home/OOH video, newspaper, online, radio, mobile, directories, social and magazines.
BIA/Kelsey defines local advertising as all advertising platforms that provide access to local audiences for national, regional and local marketers.
For information on gaining access to the forecast by becoming a BIA/Kelsey client, contact Mark Giannini, COO and SVP, business development, at email@example.com or (703) 818-2425.
BIA/Kelsey (@BIAKelsey) combines data, analytics and insights to provide its clients with the information they need for grounded financial and strategic action. Since 1983, BIA/Kelsey has been a valuable resource for many of the leading companies in media and the financial and legal community serving media and telecom, as well as the FCC and other government agencies. Today, BIA/Kelsey offers a broad range of research, consulting services and conferences to traditional and new media companies. Learn more about BIA/Kelsey at https://www.bia.com.