Local Ad Spending Moving More to Mobile and Online; BIA/Kelsey’s
Media Ad View Reports Reveal Where Local Ad Dollars Are Flowing
Large ad revenue increases expected from financial, technology/telecom
and health care.
CHANTILLY, Va.. (May 17, 2012) – According to BIA/Kelsey’s Media
Ad View reports, local advertising spending will experience
a compound annual growth rate of 2.6 percent
between 2011 and 2016, with revenues climbing
from around $132 billion to more than $150
billion. BIA/Kelsey, adviser
to companies in the local media space, 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 (CAGR: 14.4
percent).
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).
“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, BIA/Kelsey. “Newspapers are also positioned
very well to continue to drive online ad revenues.”
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 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.
“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.”
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).
MAV Webinar Scheduled for May 23
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.
Media Ad View Reports
Covering 12 media, 12 ad categories and more than 94 detailed business categories,
BIA/Kelsey’s
Media Ad View reports track local
advertising spending by media for the most recent year and five years out (2011-2016)
for every local market. Markets are organized by the 362 Core Based Statistical
Areas (CBSAs) or TV/Radio markets. The reports also track the distribution
of online ad spending in every local market. For more information on BIA/Kelsey’s
Media Ad View reports, call (800) 331-5086 or email info@biakelsey.com.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through consulting and
valuation services, research, Continuous Advisory Services and conferences.
Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising,
telecommunications, Yellow Pages and electronic directory markets, as well
as to government agencies, law firms and investment companies looking to understand
trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives
from across industries seeking expert guidance on how companies are finding
innovative ways to grow. Additional information is available at http://www.biakelsey.com,
on the company’s Local
Media Watch blog and on Twitter at http://twitter.com/BIAKelsey.
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Company Information
BIA Advisory Services (BAS) is doing business as (d/b/a) BIA/Kelsey. BAS is owned by BIA Financial Network. For more information on this parent company and for a list of affiliated companies, please click now.
