Strengthened by Political Season, BIA Projects $175.6 Billion in 2024 Local Advertising Marketplace Spending
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CHANTILLY, Va. (April 22, 2015) – In the spring update to its U.S. Local Media Forecast 2015, BIA/Kelsey forecasts location-targeted mobile advertising revenues in the U.S. to grow from $6.7 billion in 2015 to $18.2 billion in 2019, representing a 28.5 percent compound annual growth rate (CAGR).
According to the forecast, mobile is driving most of the change in digital media, gaining traction with advertisers, and jumping to an 11.5 percent share of the total local media pie by 2019, up from a 4.8 percent share in 2015. This will make mobile the fourth largest local media in 2019, behind direct mail (23.6 percent share), over-the-air television (13.7 percent share) and pure-play online (12.9 percent share).
“Online spending is growing on ads viewed through desktops, but general online ad unit pricing faces headwinds as the attention of audiences and advertisers alike drifts more towards mobile,” said Mark Fratrik, SVP and chief economist, BIA/Kelsey. “Online will gain just a few points of local advertising market share, as mobile nearly triples its share.”
Mobile’s impact on the local media marketplace will be a key theme at BIA/Kelsey’s upcoming BIA/Kelsey NOW conference (June 12, San Francisco), which will examine the emerging local on-demand economy (LODE).
“We live in an on-demand culture, conditioned by the mobile device to get whatever we want, whenever we want it,” said Michael Boland, chief analyst, VP, content, BIA/Kelsey, and co-chair for BIA/Kelsey NOW. “This is really reshaping the local service economy, with demand being captured and revealed for service providers in real time. At BIA/Kelsey NOW, we’ll examine how this may impact the traditional local advertising model, in which advance marketing is required to connect buyers with sellers.”
BIA/Kelsey issues its annual U.S. Local Media Forecast each fall, followed by a spring update six months later, incorporating actual figures from the recent year end. The forecast 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. BIA/Kelsey defines the local media advertising marketplace as all media generating revenues by selling access to local audiences to all types of advertisers. “Local” audience advertising sales include buys specifying local and regional markets.
The forecast offers a 360-degree view of the market for all spending on local advertising, including breakouts for 12 media segments: newspapers, radio, over-the-air TV, cable TV, out-of-home, direct mail, directories, magazines, online, mobile and social.
To order a copy of the U.S. Local Media Forecast 2015 spring update, please visit BIA/Kelsey’s online store.
BIA/Kelsey advises companies in the local media space through consulting and valuation services, research and forecasts, Custom Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at https://www.bia.com, on the company’s Local Media Watch blog, Twitter (http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey). Stay connected by subscribing to the firm’s bi-monthly newsletter.