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BizReport : Advertising archives : June 06, 2016

Forecast: Local ad revs to push $170b by 2020

Look for steady growth in the local ad segment. That's the takeaway from BIA/Kelsey's new Local Advertising Forecast 2016. Researchers suggest that local ad revenues will continue at a nearly 5% CAGR over the next four years.

by Kristina Knight

The local spend will be driven by new media - online/digital revenues. Those outlets will see stronger than average growth of nearly 13% through 2020, suggests the forecasters.

"While digital's impressive growth, driven by mobile and social, comes mainly at the expense of traditional print media, it's important to note other traditional media segments are maintaining a position in the local marketplace," said Mark Fratrik, chief economist, BIA/Kelsey. "National and local businesses still utilize a mix of advertising platforms, comprised of digital and traditional formats, capitalizing on the strengths of various media to get the message out."

Other interesting takeaways from the US Local Advertising Forecast 2016 include:

• Overall local ad revenues are expected to hit $172.2 billion by 2020
• Traditional ad revenues are expected to be flat (0.0%) through 2020
• Online/digital local spending will push past $71b

Overall, online/digital ad spending is expected to account for more than 40% of the total local ad spend through 2020.

The research breaks down other ad types as direct mail at $36.9b, local TV at $21.9b, newspapers at $17.4b and radio at $15.4b.

Tags: advertising, BIA/Kelsey, local advertising, US local advertising spend

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