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BizReport : Advertising archives : November 02, 2015

Forecast: Mobile, Social, Video to push 2016 local ad spend

With only a few weeks left in 2015, BIA/Kelsey has released their local advertising forecast for the 2016 year, and their experts are predicting video, social and mobile advertising to take center stage. Overall, they expect the local ad spend to increase nearly 4%, pushed by political advertising budgets, to reach at least $141 billion.

by Kristina Knight

Of that increased spend, BIA/Kelsey predicts online and digital revenues to increase nearly one-third to reach about $42.6 billion.

"For 2016, we expect total local ad revenues to nudge upward, resulting from a slightly stronger U.S. economy and a substantial amount of political advertising. We also adjusted our 2015 estimate for total local media spending up slightly due to stronger mobile and social advertising," said Mark Fratrik, chief economist, BIA/Kelsey. "Mobile is the primary force behind the continuing increase in digital advertising, largely driven by social advertising. Mobile spending is growing faster than expected, cutting into the growth of other online advertising. For example, online spending on ads viewed through desktops is still increasing, but overall only at single digit growth rates as more of the attention of consumers and advertisers alike shifts to mobile."

Some interesting predictions include:

• Location targeted mobile ads will increase to $11.3b
• Local social will increase to $3.3b
• Local search will increase to $8.2b

Image via Shutterstock

Tags: 2016 ad forecast, advertising, advertising trends, BIA/Kelsey, local ad trends, local advertising forecast

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