BIA/Kelsey: Local Ad Spending Moving More To Mobile And Online, Radio 'Holds It's Own'
May 17, 2012 at 5:04 AM (PT)
According to BIA/KELSEY’s Media Ad View reports, local advertising spending will experience a compound annual growth rate of 2.6% between 2011 and 2016, with revenues climbing from around $132 billion to more than $150 billion. BIA/KELSEY expects spending to increasingly shift from traditional media and direct advertising to digital alternatives. Mobile and online will account for the largest increase in local ad spending, nearly doubling from $11.1 billion in 2011 to $21.8 billion in five years (CAGR: 14.4%).
BIA/KELSEY’s Media Ad View reports provide a detailed picture by advertiser category of trends and competitive market intelligence across the entire local advertising spectrum. The Media Ad View analysis shows the major source of advertising in the mobile and online space will be technology/telecom, which will spend $5.1 billion by 2016 (up 80.7%). Other top spending categories include retail ($4.5 billion), automotive ($2.6 billion) and health care ($815.3 million).
"While we expect to see changes in ad spending in some advertising categories, it is significant to note that television and radio continue to hold their own, while out-of-home, online and mobile are having an impact on the overall share," said VP/Chief Economist MARK FRATRIK. "Newspapers are also positioned very well to continue to drive online ad revenues."
This year's Media Ad View revenue reports break down 12 primary categories for advertisers into 94 detailed business categories, further analyzing the spending in each of the 210 local television markets and the U.S. Census’ 362 Core Based Statistical Areas. The results provide a detailed picture of the spending in each market around business categories like automotive, education, financial/insurance, general services (i.e., legal, accounting, design), government/political/religion, health care, leisure/recreation, media, real estate, restaurants, retail and technology/telecommunications. The reports also include an analysis of online spending distribution to examine what dollars are being spent online and where.