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National Brands Will Reach Further Into Local Media
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Radio
sees itself foremost as a local medium; so the latest projections about local
media advertising will be of interest to your station’s sales manager today.
Consulting and
research firm BIA/Kelsey believes U.S. local
media ad revenues will grow at a compound annual rate of 2.3 percent through
2017, reaching $148.8 billion. However, it also believes that traditional local
media’s share of that will decrease from $109.4 billion in 2012 to $107.6
billion in 2017.
“As anticipated, traditional media
revenues experienced a bump in 2012 from political advertising,” the company
stated. “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.”
It said national brands
accounted for about 32% of the $132.5 billion spent on local media advertising
last year, and national’s share of local business likely will grow to $51 billion by 2017. The company’s
Mark Fratrik said the use of local media by regional and national businesses is
reflected through market shifts in “mobile, social, search, promotions, coupons
and deals, native ads and sales transformation.”
And
the company believes that digital media will continue to grow as a percentage of total
local media revenues, from about 17% to 27%.
BIA/Kelsey defines local media as those that provide local audiences to all types of
advertisers.
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