The good news is that media sellers can expect revenue of $197 billion in 2018. Without the cyclical spending of politics and the Olympics, the ad market growth will be more like 3.7%.
Last week, I discussed BIA/Kelsey’s new annual Local Media Forecast in the context of the outlook for radio stations. The firm’s report projects a strong outlook for the local media market every year between now and 2017. Not surprisingly, BIA/Kelsey’s analysts point out that digital formats will be the growth stars of the local ad market over the next several years.
Most traditional media companies have changed their strategies and business models to better compete in the digital age. Directory companies are no exception. These businesses have always relied on businesses to pay for upgraded listings in order to generate revenue, but in today’s digital environment, directory publishers are branching out into marketing services and targeting small and medium-size businesses (SMBs) in new ways.
Local media companies may find new revenue this year from national advertisers. This is especially true if they offer a mobile solution. While local advertisers spend at the rate of over 2 to 1 in the local ad market, when compared to national advertisers, the national money remains important to media companies.
Last year, research firm Balihoo pointed out the difficulty that large marketers face when they try to advertise on the local level. These enterprises know they can better compete with local businesses and increase sales when they engage with customers on a personalized basis. New research from the CMO Council explains how enterprises can go about this process.
Whether it’s a wine tasting or a dance competition, small and medium-sized businesses (SMBs) are sponsoring events to generate foot traffic. While businesses historically promoted these events through radio or local newspapers, they have more channels to use these days. In particular, SMBs are realizing that mobile technology can help them spread the word about their upcoming events.
With more marketers flooding the mobile space, some are looking to stand out from the crowd and make sure their campaigns are noticed. Several studies have been released lately that point to when social media posts should be released with regard to specific day and time of day. Another recently published study pinpoints the seasonality of click-through rates (CTRs).
Earlier this week, I highlighted the immr Local Search study that links rapid industry growth to the booming use of smartphones. The local mobile advertising market has been growing, too, though more slowly than originally projected by BIA/Kelsey this year. But the company is predicting huge increases in the sector, fueled by small and medium size businesses (SMBs) as well as national brands.
Both small and large businesses are shifting their local promotional budgets into digital. For now, about 75% of the local ad market still goes to traditional media. But, BIA/Kelsey analysts are predicting big changes as a result of their most recent research.
Marketers who aim for a national audience may believe that they can effectively reach their target by using media formats like broadcast TV. But a significant number of these advertisers also allocate a portion of their media mix to local marketing initiatives. Doing so has both challenges and rewards.
One of the biggest challenges facing forecasters this year has been economic uncertainty. The continued threat of a double dip recession has merchants staying conservative with respect to ad spending. As a result, some analysts have revised their earlier forecasts for the local digital advertising market down slightly but spending overall for 2011 will be higher than it was last year.