Local media ad revenues are forecast to rise at a compound annual growth rate (CAGR) of 2.8% for the five year period from 2012 through 2017, hitting $151.5 billion in 2017. Not surprisingly, that growth will be driven by online/digital ad revenues – forecast to enjoy a 13.8% while traditional media barely grows by a 0.1%.
Location targeted mobile advertising revenues, which are growing at a faster pace than overall mobile advertising, will increase from $2.9 billion in 2013 to $10.8 billion in 2017, accounting for 52% of overall U.S. mobile ad spending in 2017, BIA/Kelsey predicts. Total mobile ad spending will grow from $7 billion now to $20.7 billion in 2017.
Newspapers are expected to be the big losers in local ad market share, dropping to a 9.1% share in 2017. However, the online operations associated with newspapers are projected to claim 2.4% of local ad spending.
For television, local broadcast TV is expected to see its share slip slightly, while local cable grows. Now commanding 5.4% of the local ad market, Cable is forecast to increase that to 5.7% by 2017. Cable has been growing its share of political spending, but is also strong in non-election years.
Local TV is seen slipping slightly to 14.6% in 2017, although it will still be second only to direct mail, at 24.6%. Also, broadcast TV is growing local advertising on its digital properties, with the online operations of TV stations expected to claim 0.7% of local advertising in 2017.
Digital has become more important for both national and local advertisers, On the other hand, you still need local TV advertising campaigns – and national TV advertising campaigns – to move product. Automobile advertising, while they’re moving a lot of money online, still spend a lot of money on local television and local cable.