Between 2016 and 2021, local advertising spending in the U.S. will grow 3.8% annually to $174 billion, according to BIA/Kelsey’s mid-year projections on the market, reports TVNewscheck, which added that the compound annual growth “will be driven by double-digit increases in mobile and social advertising and local online and mobile video, all slated to experience at least a 17% increase by 2021,” the report says.
“During the five-year period, growth in online/digital advertising will grow at 11.9% annually, while advertising on traditional media like broadcasting will bump along with 0.6% growth.
“”We are on the precipice of different advertising channels taking lead positions in the local advertising marketplace,” said Mark Fratrik, chief economist, BIA/Kelsey.
“”Although national and local businesses still utilize a mix of digital and traditional advertising platforms, the opportunities afforded by mobile, social and video advertising are incredibly valuable due to their measurability, adoption by consumers and enhancements by technologies such as beacons and data attribution that blend extraordinarily well with today’s mobile consumer.”
- Direct Mail: $37.1 billion (25% share)
- Local TV: $20.9 billion (14% share)
- Online / Interactive: $18.6 billion (11% share)
- Newspapers: $16 billion (11% share)
- Mobile: $16 billion (11% share)
- #6 – Local Radio: $15.6 billion (10% share)
“”Mobile has replaced radio in the top five media this year, but the dominant player continues to be direct mail,” said Fratrik.”