U.S. Local Media Ad Revenues to Grow from $132.5B in 2012 to $148.8B
in 2017, According to BIA/Kelsey
National brands accounted for nearly one-third of total U.S. local
media ad spending in 2012
CHANTILLY, Va. (March 18, 2013) – BIA/Kelsey, adviser to companies
in the local media industry, forecasts local media advertising revenues
to climb from $132.5 billion in 2012 to $148.8 billion in 2017, representing
a compound annual growth rate (CAGR) of 2.3 percent. In its newly released
U.S. Local Media Forecast (2012-2017), the firm reports national brands
accounted for 32.1 percent or $42.5 billion of the $132.5 billion spent
on local media advertising in 2012. National’s share of local
ad spending is expected to grow to nearly $51 billion by 2017.
“Local media has become a key channel, not only for local small
businesses, but for regional businesses, national franchises and national
brands targeting locally,” said Mark Fratrik, vice president
and chief economist, BIA/Kelsey. “This is clearly seen in our
tracking of market shifts in mobile, social, search, promotions, coupons
and deals, native ads and sales transformation.”
Digital media continues to increase its share of total local media
revenues, growing from 17.4 percent in 2012 to 27.6 percent in 2017.
The firm expects traditional local media revenues to decrease from
$109.4 billion in 2012 to $107.6 billion in 2017 (CAGR: -0.3 percent).
As anticipated, traditional media revenues experienced a bump in 2012
from political advertising. The political ad spend cycle contributes
to a drop in revenues in odd-numbered years. Despite the year-over-year
political advertising seesaw effect, traditional media revenues remain
remarkably steady throughout the forecast period.
BIA/Kelsey analysts will present highlights from the forecast at the
firm’s LEADING
IN LOCAL: The National Impact conference, taking
place today through Wednesday, in Boston. LEADING IN LOCAL is gathering
senior executives from across the local media, advertising and marketing
space to examine how national's local play is having an impact on local
media.
About the Annual U.S. Local Media Forecast
BIA/Kelsey defines the local media advertising marketplace as those
media that provide local audiences to all types of advertisers. BIA/Kelsey’s
Annual U.S. Local Media Forecast (2012-2017) draws from proprietary
data; company, industry and country information in the public domain;
and discussions with clients and non-clients about the direction and
pace of development in the local media marketplace. The forecast is
issued annually each spring and updated in the fall. BIA/Kelsey custom
advisory service clients receive a full forecast report. For information
on gaining access to the forecast by becoming a BIA/Kelsey client or
for details on purchasing the forecast, contact Steve Passwaiter, VP,
business development, at spasswaiter@biakelsey.com or (703) 818-2425.
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, Twitter (http://twitter.com/BIAKelsey)
and Facebook (http://www.facebook.com/biakelsey).
For more information contact: MacKenzie Lovings
BIA/Kelsey
(703) 818-2425 mlovings@biakelsey.com
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