The updated outlook calls for online/digital advertising revenues to be stronger than originally predicted, climbing at an annual rate of 12.8% from 2015-20. But traditional advertising revenues will hold their own with flat revenues forecast during the same period.
“While digital’s impressive growth, driven by mobile and social, comes mainly at the expense of traditional print media, it’s important to note other traditional media segments are maintaining a position in the local marketplace,” Mark Fratrik, chief economist, BIA/Kelsey, said in a news release. “National and local businesses still utilize a mix of advertising platforms, comprised of digital and traditional formats, capitalizing on the strengths of various media to get the message out.”
Zeroing in on the present year, radio will capture 11% of local media ad dollars in 2016, or $15.4 billion, to rank fifth out 12 media channels tracked by BIA/Kelsey. At 25%, direct mail will pull in the largest share in 2016, capturing one of every four local ad dollars, or $36.9 billion. Local TV is second with 15% ($21.9 billion), followed by newspapers in third place with 12% ($17.4 billion) and online interactive fourth at 12% ($17.3 billion).
By 2020, local online/interactive/digital advertising revenues will add up to $71.6 billion, representing 41.6% of total local media advertising revenues, up from 28% in 2015.
BIA/Kelsey defines local advertising as all ad platforms that provide access to local audiences for national, regional and local marketers. Its five-year forecast offers individual media breakouts for direct mail, local video, local over-the-air television, local cable television, out-of-home/OOH video, newspaper, online, radio, mobile, directories, social and local magazines.
4 Local Media provides targeted digital solutions utilizing online & in-location promotions!
Become a National Media Broker: www.4localmedia.net