Home » BIA updates U.S. local advertising estimate for 2024 to $172 billion; indicating 9.3 percent growth from 2023

BIA updates U.S. local advertising estimate for 2024 to $172 billion; indicating 9.3 percent growth from 2023

by | Mar 13, 2024

In its update to the 2024 U.S. Local Advertising Forecast, BIA Advisory Services, based in Chantilly, Va, estimates revenues across all media in the U.S. will reach $172 billion in 2024, an increase of 9.3 percent over 2023. The rise will be driven by local political and other key local vertical ad spend, and significant ad growth for connected TV/over- the-top (CTV/OTT), TV OTA, and TV Digital. The forecast reflects a reduction of 2.0 percent from BIA’s October 2023 estimate.

“As expected, local political advertising will be substantial this year, and it’s fueling spend across the media landscape,” said Nicole Ovadia, VP of Forecasting & Analysis, BIA Advisory Services. “Our slight adjustment down for this year is mainly due to mixed economic signals, a slowdown in certain consumer purchases, and lower than expected spending in Digital and Direct Mail advertising at the end of 2023 that may flow into this year. However, we still anticipate 2024 to be better for local advertising than 2023 and certain media like TV OTA, TV Digital, and CTV/OTT are growing substantially.”

The 2024 forecast update shows a small increase in expectations for local political advertising. BIA estimates $11.1 billion in spending this year, up 15.5 percent from 2020. Local television will continue to get the largest share of the spending, with forecasted increases in
local political advertising going to CTV/OTT.

The split between traditional and digital advertising shows that digital has a slightly smaller share, 48.7 percent, of the overall advertising spend at $84 billion. Traditional media ad revenue is slated at 51.3 percent of the ad spend at $88 billion. Growth is occurring in both
types of media. TV OTA (+28.3 percent) and TV Digital (+24.9 percent) are both projected to grow this year, even when looking at forecast estimates with and without political advertising.

The breakout media this year will be CTV/OTT, whose growth can be attributed to high quality and more accessible inventory through the programmatic market, increased costs per thousand (CPMs), and demand to generate higher overall revenue. BIA forecasts that in 2024
CTV/OTT will grow 53.8 percent.

“Political and issue campaigns are recognizing that the combination of premium TV and targeted advertising can make a strong impact, using the same kinds of data ad buyers need with digital media,” said BIA’s Managing Director Rick Ducey. “Another factor supporting this growth is that we are observing spending leaking out of search and social and going into CTV/OTT.”

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