Research: More Than Half Of Ad-Spending Is Local, Steady Shift To Digital/Mobile Media

Research More Than Half Of Ad-Spending Is Local, Steady Shift To Digital and Mobile MediaBIA/Kelsey published its US Local Media Annual Forecast (2009-2014) today detailing some interesting findings and predictions when it comes to local marketing and advertising in the US.  The overall message being that spending is increasingly being focused towards local advertising, as well as a continued shift towards digital media and primarily mobile.

Generally speaking, BIA/Kelsey predicts the US local advertising market to reach $144.9 billion in 2014, representing a modest compound annual growth rate of 2.2 percent from 2009.  A closer look at the forecast period reveals, following a significant contraction in 2009, local media spending is expected to be slow through 2011, with meaningful recovery beginning in 2012.  The group also forecasts spending on traditional media to decline from $115 billion in 2009 to $108.2 billion in 2014.  During the same period, however, spending on online/interactive/mobile media is projected to grow from $15.2 billion to $36.7 billion.

The interesting take-away from the forecast is the revelation that 55 percent of all ad spending is with local media, defined as “spending by small and medium-sized businesses and national advertisers or regional advertisers making local buys.”  In 2009, total U.S. ad spending was $235.6 billion.  Of that, the group estimates $130.2 billion was spent on local ad buys, with $105.4 billion attributed to national advertising.

This is interesting because as the shift to digital/interactive marketing mediums continues, so too does the interest in local advertising, likely fueled by much better targeting and relevancy potential over older, legacy forms of marketing.  This is a prime example of why mobile is increasingly becoming the channel of choice for forward-thinking brands wanting to get more bang for their buck.