Digital Jump Predicted in Local Advertising

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.

This year, marketers will spend an additional 13.1% on local digital advertising. The interest in online marketing at the local level means big growth through at least 2016 for formats like mobile search and social.  This year, the digital formats on track to exceed the local digital average growth rate are:

  •  Mobile search +77.2%
  • Online video +51.6%
  • Social +26.3%

Through 2016, the following compound annual growth rates for digital revenue are expected:

  • Newspapers 5%
  • Radio 11.8%
  • TV 12.8%
  • Digital out of home 11.7%
  • Online 9.4%
  • Mobile 44.9%
  • Internet Yellow Pages 12.5%
  • Email, reputation, presence management 14.9%
  • Social media 21%
  • Online video 36.7%

Mark Fratrik, vice president and chief economist, BIA/​Kelsey, says “As businesses examine their advertising opportunities, the trend is moving toward building a coordinated ad plan across different platforms, with different messages across different media.” This leaves media companies needing to show how their formats work with digital. While many marketers are ready to explore high-​profile formats like social media, traditional operators like newspaper companies will be working harder to “migrate important sectors of advertising to online” in the next few years. This selling effort will be particularly important in the local market as smaller advertisers embrace digital.

[Source: Digital Ad Revenues for Local Media to Grow 13.1% in 2012. BIAKelsey​.com. 16 Jul. 2012. Web. 24 Jul. 2012] 
Kathy Crosett
Kathy is the Vice President of Research 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. Previously, she was co-​owner of several small businesses in the health care services sector.