In case you missed it, local advertisements are having a moment. New research shows consumers appreciate national advertisers that customize messages to the local market.
This is great news. Media sellers and agencies are coming off a big year of political advertising. They may wonder where future growth will come from.
You can let them know that there’s plenty of optimism in several verticals and for local ads this year.
New Appreciation for Local Messaging
National advertisers spend up to $1 million for a 30-second ad that runs during prime-time television shows. Those ads have a broad reach and make an impression on consumers according to eMarketer.
When a national company runs a branding campaign, they don’t always get a boost in sales at the local level. New research finds that local advertisements purchased by national advertisers resonate with consumers. When an ad campaign is customized to the local market, consumers notice. And they appreciate it.
In a survey by Locality and The Harris Poll, consumers report their following reactions to national companies and local ads:
- Want to learn more about the advertiser: 66%
- More likely to purchase from the advertiser: 65%
- More likely to trust the advertiser: 65%
Share this data with your national advertisers and help them understand the nuances of your local market. Let them know that local advertisements drive revenue.
Local Verticals Ready to Soar
Earlier this week, we reviewed the general advertising outlook offered by Plural Strategy. We also highlighted how the new optimism of small and medium-sized business owners is likely to fuel ad spending. As a local media or agency seller, it’s helpful to know which verticals will increase their ad spend in 2025.
Local Ad Market Overview
Our partner, BIA Advisory Services, predicts that local spending looks particularly bright for several categories. They also have highlighted must-know local ad market details.
Local ad spending overall is poised to reach $170.9 billion in 2025. And for the first time, local digital spending (52%) will overshadow local traditional advertising (48%).
Promising Verticals
Before we look at 2025 predictions, let’s review what happened last year. The biggest spending categories in the local ad market in 2024 will be familiar to industry watchers. Businesses in these categories have long purchased ads on local TV and out-of-home formats.
These businesses understand the power of local advertisements.
- Retail $24.1 billion
- Recreation/Leisure $18.4 billion
- Restaurants and food $14.2 billion
This year, two of the fastest growing verticals will be unchanged from 2024: Retail and restaurants. But there’s another promising category waiting in the wings: real estate.
Here are the predicted growth percentages for 2025 for these verticals:
- Restaurants +9.5%
- Retail +5.5%
- Real estate +6.7%
Nicole Ovadia, the VP of forecasting and analysis at BIA Advisory Services, notes that these categories are ripe for expansion.
Restaurants
If you’ve been working with a local restaurant in the past year, it’s time to approach them with fresh ideas. You can start by sharing psychographic data from AudienceSCAN by AdMall.
Would your account be interested to know that frequent restaurant diners are more likely than average to treat themselves to retail therapy? They might want to participate in a joint ad campaign with a local retailer. The outcome would likely drive traffic to both locations.
Legal Services
Another healthy category for local ad market spending will be legal services. In 2024, BIA reported that legal services would spend over $8.4 billion promoting themselves. These businesses use a mix of traditional and digital media to connect with potential clients.
Significant life events often drive the need for legal services. With AudienceSCAN by AdMall, you can show your clients psychographic data on consumers who intend to marry in the next year. These consumers may want to draw up a prenuptial agreement. You can also delve into the details about home buyers. They will be looking for an attorney to help them close the deal.
Through the power of local advertisements, small and large businesses will be reaching out to consumers. National advertisers will also be looking to localize their ad spending. You can help clients generate an impressive ROI by sharing audience intelligence that makes a difference.
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