Local Ad Revenue To Increase $16 Billion
That forecast comes form BIA/Kelsey in its newly released <i>"U.S. Local Media Forecast,"</i> report. National brands accounted for 32.1 percent or $42.5 billion of the $132.5 billion spent on local media advertising in 2012. National's share of local ad spending is expected to grow to nearly $51 billion by 2017. Digital media continues to increase its share of total local media revenues, growing from 17.4 percent in 2012 to 27.6 percent in 2017.
BIA/Kelsey Vice President and Chief Economist Mark Fratrik says "Local media has become a key channel, not only for local small businesses, but for regional businesses, national franchises and national brands targeting locally. This is clearly seen in our tracking of market shifts in mobile, social, search, promotions, coupons and deals, native ads and sales transformation."
The firm expects traditional local media revenues to decrease from $109.4 billion in 2012 to $107.6 billion in 2017. As anticipated, traditional media revenues experienced a bump in 2012 from political advertising. The political ad spend cycle contributes to a drop in revenues in odd-numbered years. Despite the year-over-year political advertising seesaw effect, traditional media revenues remain remarkably steady throughout the forecast period.
BIA/Kelsey analysts will present highlights from the forecast at the firm's LEADING IN LOCAL: The National Impact conference, taking place today through Wednesday, in Boston. LEADING IN LOCAL is gathering senior executives from across the local media, advertising and marketing space to examine how national's local play is having an impact on local media.
BIA/Kelsey defines the local media advertising marketplace as those media that provide local audiences to all types of advertisers. BIA/Kelsey's Annual U.S. Local Media Forecast (2012-2017) 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 spring and updated in the fall. BIA/Kelsey custom advisory service clients receive a full forecast report. For information on gaining access to the forecast by becoming a BIA/Kelsey client or for details on purchasing the forecast, contact Steve Passwaiter, VP, business development, at firstname.lastname@example.org or (703) 818-2425.
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