According to a new report from BIA/Kelsey, digital ad spending in local media is on pace to grow at a compound annual rate of 14% in the next five years.
Digital ad spending will hit $23.1 billion this year and balloon to $44.5 billion in 2017.
More rapid digital growth is predicted to drive a 2.8% increase in total local media ad sales to $151.5 billion by 2017.
MediaPost reports that mobile local ad spending will grow especially fast, in part, “because it’s starting from a smaller base.”
After a 6% gain in 2013, BIA/Kelsey projects that local digital ad sales will jump almost 16% to $30.7 billion next year as a result of various factors, including a slightly improving U.S. economy, a more positive investor outlook, and the 2014 elections and Winter Olympics.
Not surprisingly, the market introduction of the Affordable Healthcare Act is also expected to drive greater local ad spending.