BIA/Kelsey: Local Digital to Overtake Print by 2018

Wed Nov 9, 2016

Kathy Crosett

The local advertising marketing will grow by 2.4% next year, according to smartphonecoupleBIA/Kelsey. There are big changes to come in this ad market which BIA/Kelsey defines as inclusive of all advertising done at the local level by national, regional and local advertisers. One huge prediction centers on the growth of digital.

In 2016, the local ad market will likely top out at $145.2 billion. Look for that number to jump to $148.8 billion next year. By 2021, marketers will be spending $179.4 billion on local advertising. For next year, the market split by advertising type will look like:

  • Newspapers print 8.3%
  • Newspapers online 2.5%
  • Direct mail 24.9%
  • TV O-T-A 13.3%
  • TV Online 0.7%
  • Cable TV 4.6%
  • Radio O-T-A 9.6%
  • Radio Online 0.9%
  • Magazine 1.1%
  • Magazine Online 0.4%
  • Out-of-Home 5.7%
  • Yellow pages 1.3%
  • Online YP 1.7%
  • Online Interactive 12.5%
  • Email 1.8%
  • Mobile 10.8%

Next year, the percentage of total local ad market spending going digital will increase to $50.2 billion. This jump is 13.5% higher than the spending done this year. Whether it’s the local florist paying for search campaigns or the shoe store touting the latest fashions via online video, small businesses want to get themselves into the digital space.

They’re not the only businesses spending in the local ad market. Remember that national and regional companies are allocating digital ad money to reach consumers who are shopping at their local retail stores or eating at the closest fast casual restaurant in their chain.

The shift to digital is so unrelenting that BIA/Kelsey analysts predict the category will exceed print spending in the local market by 2018.

The analysts also pointed out where the most significant increases in digital spending are likely to occur at the local level next year:

  • Email 4.7%
  • Local search – desktop 5.7%
  • Local display – desktop (video and social) 10.3%

Reps who are selling digital marketing services may be able to capitalize on these growth plans by promoting themselves to local businesses. Media sellers should also be targeting national and regional companies with local bricks-and-mortar establishments in order to tap into traditional and digital ad budgets for next year.

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About Kathy Crosett

Kathy is the Research Director for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel.

View all posts by Kathy Crosett
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