Local Ad Spending By Auto And Financial/Insurance Segments On The Rise; Continued Growth in Digital, Finds BIA/Kelsey
June 10, 2013 at 3:23 AM (PT)
According to BIA/KELSEY's Media Ad View Plus forecast, automotive and financial/insurance advertising in local media channels is growing steadily. BIA/KELSEY expects the total local ad spend for the automotive sector will grow from $16.1 billion in 2012 to $17.5 billion in 2017, increasing its share of online advertising from 7.4% to 12%, and its mobile advertising from 0.5% to 4.4% in that same timeframe. Similar leaps are expected from the financial/insurance category, which will climb from $12.6 billion in local ad spending to $15.3 billion, with the mobile spend growing from 1.6% to 9.8%.
As reported in MARCH by BIA/KELSEY's U.S. Local Media Forecast (2012-2017), the forecaster expects the overall local ad market will climb from $132.5 billion in 2012 to $148.8 billion by 2017. To supplement the forecast and offer a more detailed picture of advertising trends and competitive market intelligence, the firm is now releasing its Media Ad View Plus forecast that offers both a local and a national comparative forecast that allows businesses to evaluate market opportunities across multiple dimensions: local markets, media and business categories.
"The local media market continues to experience positive growth as media buyers look both locally and nationally to identify the right mix of traditional and digital channels for reaching local targets," said VP/Chief Economist Dr. MARK FRATRIK. "Online and mobile continues to be the top growing ad channels. By 2017, the real estate business category will increase its online ad spend to an astonishing 40.8% and automotive dealers will focus on video, spending 11.4% of their $2.4 billion online ad budget on video display."
Media Ad View Plus also reveals that by 2017 newspapers’ share of real estate advertising will decrease from 27.7% to 7%, while online's share will grow by nearly 18%. The report also shows that the quick service restaurant category (subset of restaurants) will increase its online spending from $434.4 million to $618.6 million during that same time period.
"Our clients have told us that the key value of Media Ad View Plus is that it allows them to review the state of their market in one place," said FRATRIK. "By expanding the data in Media Ad View Plus, we are giving our clients a comprehensive snapshot of the activity in their local markets so they can decisively identify trends, revenue opportunities and competitors in an interactive format."
BIA/KELSEY defines local media advertising as advertising placed purely on local media outlets, including national, regional and local ads on radio stations, television stations and newspapers. The methodology for Media Ad View Plus includes analysis based on client requests.
Media Ad View Plus Forecast Webinar Scheduled For June 19
BIA/KELSEY will preview its 2013 Media Ad View research, forecast, trends and methodology behind the numbers, during a free webinar on WEDNESDAY, JUNE 19th, at 2p ET. More information and webinar registration is available at www.biakelsey.com.