BY Denise Gibson
A new study from Digiday and Locality indicates big companies want to advertise locally to reach fragmented audiences. Over 80% of surveyed businesses believe that around 20% of their revenue is specifically linked to their local ad spending. This change could be an opportunity for you to pitch your media to large marketers.
This data point is leading 83% of agencies and media buyers for large companies to indicate that up to 20% of their marketing budget will go to local advertising in 2025.
Sources of Funding
To make this happen, 24% are shifting budget from national to local spending. For 20% of large companies, the local ad allocation is coming from another budget line item.
A local advertising approach doesn’t replace a national campaign. It “reinforces” branding. National brands want to advertise locally, and they are doing so in the following formats:
- Social media 67%
- Cable TV 53%
- Direct mail 46%
- CTV/OTT 45%
- Radio 43%
- Broadcast TV 38%
- Print media 28%
- OOH 19%
When approaching these accounts, keep in mind that a local advertising approach doesn’t replace a national campaign. These marketers are seeking to “reinforce” branding and increase revenue.
Advertise Locally: Understanding the Challenges
One challenge large brands face when localizing content is complexity. You can win their business by being easy to work with. You can serve as the expert in targeting local audiences with the right tools. AdMall allows you to pinpoint audiences by zip code, a key factor for many brands seeking to buy advertising on CTV and broadcast TV.
More About CTV Advertising
Your accounts have many ways to develop their CTV and streaming campaigns. 56% of big businesses use zip code targeting, and 54% go for location-based targeting. AudienceSCAN from AdMall provides zip code data that you can share with these accounts.
More About Local Broadcast TV Campaigns
National advertisers also see value in local TV advertising. They partner with local TV stations (53%) for event sponsorships and seasonal ads. And 21% use exclusive promotions to drive local store sales. This strategy also makes it easier to measure the success of the local-advertising initiative set by your accounts.
Other Local Strategies
To connect with local audiences and to be authentic, 47% of big companies collaborate with local influencers. Big advertisers are also developing partnerships with local media (34%) and building content-relevant ads (33%).
Cost Effectiveness of Local Advertising
Locality analysts emphasize that national campaigns are more expensive than local campaigns. At least 48% of national advertisers believe that local advertising is more cost-effective for them.
But businesses also point out that “buying local can be complex.” This complexity can drive up the cost of a national business’s strategy to advertise locally. As a media seller, you can simplify the process. For example, large businesses need to understand who their major competitors are locally. You can easily provide that information.
Impact of Local Advertising
In an era of personalization, local advertising allows brands to customize ads and strengthen relationships with consumers. Businesses hope to gain the following benefits from their local ad efforts:
- Improved targeted audience reach 78%
- More foot traffic 61%
- Relevant messaging to the location 61%
- Better customer relationships 59%
Around 62% report that these campaigns tend to be more “performance or outcome-based versus brand awareness.”
The Benefit of AI
Advances in AI technology have made it easier to create locally targeted ads. Buying decisions are made at the local level, and consumers respond to details such as cultural details or important landmarks in their market.
Summary
To get the most out of their advertise-locally initiatives, 47% of large marketers plan to establish local insights teams. Connect with these ad buyers to pitch your media company’s offerings.
Image by Vitaly Gariev on Pexels.
