BIA Advisory Services recently updated its local ad market prediction for 2018. The total estimate is now $146.6B. That projection’s down a bit from numbers released earlier this year. The good news is the experts still predict a 4% increase over the $140.9B spent on local market advertising last year.
BIA analysts say the following are the top three formats in local advertising this year:
- Direct mail $37.24B or 25.4%
- Mobile $19B or 12.9%
- Local TV (OTA) $18B or 12.3%
Local Market Hot Spots
If you’re selling local TV, you may be looking at a quota of around $500,000 this year. Can you see yourself increasing last year’s sales by 4.0 percent? The State of Media Sales survey conducted by SalesFuel earlier this year found that media sales managers believe reps are struggling with advertiser churn (64%), facing difficulties finding new business (50%), and encountering resistance to traditional advertising (47%).
Despite these challenges, 61% of media sales managers see the local market as being filled with opportunity. Business verticals with the top growth potential in 2018 include:
- Health care services (doctors’ offices, hospitals, etc.) 56%
- Local services (home repair, lawn services, etc.) 51%
- Entertainment 37%
- Recruiting/Employment 35%
Those verticals aren’t the only places you’ll find more revenue this year.
Sometimes, a case of untapped opportunity will lead you to higher revenue. If your prospects are operating in a sector that isn’t highly visible on TV, convince them to give it a try. Account Executive Hayley Curry scored new revenue in Winston-Salem, NC when she convinced her financial advisor clients to record brief “Money Matters” tips. She ran the spots during morning news shows when the targeted consumers ages 50 to 79 with specific income levels, were likely to be watching. They were a hit.
Other times, you might need to bring more research to the table. If a client is stuck in an advertising rut, give them a new reason to advertise. KFVS-TV/WQWQ-TV Success Manager Rebecca Lambert upsold an existing client with new data. The client had underestimated the size of the market that would potentially be interested in alternative energy solutions. Based on the new information provided by Lambert, they increased their ad buy and their business.
Don’t be discouraged by local ad market projections, especially if they look gloomy for your vertical. Instead, find a unique angle to convince prospects to buy more advertising, be persistent and helpful, and you’ll be able to meet your quota.