Borrell Report Focuses On The Rapid Growth Of Digital In The Local Marketplace
January 22, 2015 at 8:18 AM (PT)
BORRELL has released a new report, "2015 Outlook: Local Digital Advertising." In it, CEO GORDON BORRELL writes, "in 2015, it’s clear that targeted banners and video advertising are hot, and paid search and static display are not. Targeted display has grown to the point at which it will comprise 59% of all digital advertising this year. The growth of programmatic networks, where advertisers increasingly buy demographics instead of 'sites,' is part of the reason that sales of targeted display will nearly double in a year’s time. There’s also the mobile effect. Last year, 38% of all online advertising was delivered on a mobile device. By 2019, we expect it to be 70%. And mobile devices offer a plethora of targeting capabilities, from location to usage patterns to demographics."
The report notes, "If local advertising were a train, digital would be its locomotive, first-class passenger car and dining car. It continues to be responsible for nearly all growth in local advertising, barreling along at an acceleration rate of 40% last year and forecast rate of 42% this year. It even seems to be dragging along print and broadcast media -- the coaches and caboose -- which are now frequently bought by advertisers in order to drive digital action.
"Traditional print and broadcast media are still a significant market force. At the end of 2014, they accounted for more than two-thirds of all advertising buys. But, digital has gained share faster than another 'new medium' over the past century. It took radio 25 years to peak at a 15% share of all advertising by the late 1940s, and it took television 34 years to peak at a 22% share. Digital blew past both of those markers in 12 years.
"This year, total local advertising is forecast to grow to $115 billion, up 11.3% over 2014. Digital advertising is forecast to reach $47.8 billion, accounting for two-fifths of all expenditures. That type of share hasn’t been seen since 1998, when newspapers peaked at 40% of all local ad expenditures."
The report found that only 4 radio companies grew more than the industry average. They are:
- UNIVISION (TV & RADIO)
- SALEM COMMUNICATIONS