With economic indicators continuing to point to a strong finish for this year and into 2019, you’ll want to know which accounts plan to spend the most on advertising. BIA Advisory Services has done some of the legwork for you. At the Local Broadcast TV Annual Conference in NYC, BIA analysts shared their insights.
Political Media Spending for 2018
With the midterm elections growing more partisan and divisive, BIA analysts predict that local TV media will benefit from increased advertising. For the year, the resulting total growth in local ad spending will amount to 6 percent. The bullish forecast for higher ad local spending was echoed by another media research company this week. PQ Media expects political media spending will top $6.775 billion and break out as follows this year:
- Broadcast TV 46.4%
- Direct mail 21.4%
- Radio 7.4%
- Cable TV 7.0%
- Other, including online 17.8%
Retail Local Media Spending for 2019
Once the election and holiday season ends, local TV stations will be back to selling to noncyclical advertisers. In 2019, retail could be a particularly bright spot. BIA data indicates that TV will earn about 7.2% of what retailers spend on local media. Could they do better than that? Certainly. And BIA analysts recommend they go after some of the 43.1% of total local media spend that retailers allot to direct mail.
Top retail spenders in the local media market break out as follows. The amount of the media budget they allocated to over-the-air TV appears in parentheses:
- Furniture stores $1.2 billion (6.7%)
- Department stores $1.8 billion (7.1%)
- Women’s apparel $0.9 billion (6.6%)
- Home centers $2.9 billion (7.2%)
Local TV media groups can also grow their sales by targeting the retail verticals that are spending most heavily in online video. Two categories stand on the list of numbers released by BIA. Hobby, toy and game stores spend 4.4% of their media budgets on online video. And, bookstores spend 4.3 percent.
Start talking with your accounts about their ad spending plans for 2019. Before you make your calls, review the kinds of shoppers that frequent these retailers by checking out the AudienceSCAN profiles available at AdMall from Salesfuel.com.