5-18-2012
The report says local ad spending will grow at a rate of 2.6 percent through 2016 to more than $150 billion. That's the good news, the bad news is, 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. BIA/Kelsey VP and Chief Economist Mark Fratrik said, ?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.?
BIA/Kelsey?s Media Ad View reports provide a detailed picture by advertiser category of trends and competitive market intelligence across the entire local advertising spectrum. The Media Ad View analysis shows the major source of advertising in the mobile and online space will be technology/telecom, which will spend $5.1 billion by 2016 (up 80.7 percent). Other top spending categories include retail ($4.5 billion), automotive ($2.6 billion) and health care ($815.3 million).
This year?s Media Ad View revenue reports break down 12 primary categories for advertisers into 94 detailed business categories, further analyzing the spending in each of the 210 local television markets and the U.S. Census? 362 Core Based Statistical Areas. The results provide a detailed picture of the spending in each market around business categories like automotive, education, financial/insurance, general services (i.e., legal, accounting, design), government/political/religion, health care, leisure/recreation, media, real estate, restaurants, retail and technology/telecommunications. The reports also include an analysis of online spending distribution to examine what dollars are being spent online and where.
BIA/Kelsey will preview their 2012 Media Ad View ad revenue research, forecast, trends and the methodology behind the numbers, during a free webinar on Wednesday, May 23, at 2 p.m. ET. More information and webinar registration is available at https://www1.gotomeeting.com/register/306775761.
BIA/Kelsey defines local media advertising as advertising placed on local media outlets, including national, regional and local ads on radio stations, television stations and newspapers. One of the fastest growing categories, technology/telecommunications, will increase by $2.9 billion by 2016. The reports illustrate the industry will increase its investment in online and mobile advertising by 35.1 percent, while reducing its spending in newspapers and magazines, direct mail, TV and radio.
Using retail furniture stores in the Tampa-St. Petersburg, FL-market as an example, Fratrik says that in 2011, $2.3 million in advertising was spent across classifieds/verticals (45.4 percent), local search (38.5 percent), other display ads (11.2 percent) and video (4.9 percent). In 2016 that profile is forecast to become a $3.7 million spend across local search (42.4 percent), classifieds/verticals (37.5 percent), video (14.7 percent) and other display ads (5.4 percent).
(5/18/2012 2:26:11 PM)
Wow, great article! Thanks for sharing! Radio Mobile Apps are HOT right now and our in HIGH demand! Great to see local's moving to mobile advertising.
Andy Lynn
www.kickanotch.com
To people who have been paying attention over the past decade, there is really no news within this article.
The scenario is playing out exactly as the "naysayers" suggested it would.
The question now is, at what point will the non-naysayers admit that change needs to be made?
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