National Advertisers to Pour Money into Local Digital Campaigns
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.
In 2013, about 67% of the local ad market, $90 billion, comes from local advertisers. The balance, $42.8 billion will come from national advertisers. By 2017, the local advertising market will be worth 148.8 billion and local enterprises will account for a slight smaller share of the spending, $97.8 billion of 66% while national advertisers will spend $51 billion. BIA/Kelsey calculated these projections.
The research firm also believes that the different types of advertisers favor different media formats. National advertisers prefer to use mobile and cable TV ads. Smaller advertising like to spend in the TV, online, radio, newspaper and yellow page formats.
One big change in the local ad market this year is the national advertiser interest in local mobile and online. These marketers will spend $4.6 billion in local digital and another $1.9 billion on local mobile campaigns. The mobile effort should grow exponentially over the next few years and will stand at $6.4 billion by 2017, a bit higher than the $6.3 billion projected that same year for local online.
Have you noticed more national accounts spending on local digital campaigns this year?[Source: U.S. Local Media Ad Revenues. BIAKelsey.com. 18 Mar. 2013. Web. 27 Mar. 2013]