Local Ad Spending Makes a Big Move to Mobile

Local ad spending is getting really comfortable in mobile territory. That’s the newest discovery by BIA/Kelsey, which shows that local advertising spending will experience a compound annual growth rate of 2.6 percent between 2011 and 2016.

During that time, revenues are projected to climb from $132 billion to well over $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.

“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 Mark Fratrik, vice president and chief economist at BIA/Kelsey. “Newspapers are also positioned very well to continue to drive online ad revenues.”

BIA/Kelsey defines local media advertising as advertising placed on local media outlets, including national, regional and local ads on radio stations,

“Media buyers require not only the big picture but the granular one as well,” said Fratrik. “Our approach to Media Ad View this year was to analyze and report it from every possible angle to help ad managers better understand where the money is flowing in both the national and local markets. Our online breakout will be particularly important for understanding the competitiveness and pricing of online advertising.”