In the incredibly competitive local advertising marketplaces throughout the U.S., national advertisers are playing a bigger role. National advertisers are increasing their spending in these local markets to target consumers in specific geographic areas. While they still spend on nationwide networks (e.g., NBC, ESPN), they are increasing their spending with local media companies such as local radio and television stations, and local online properties.
Overall we expect national advertisers to increase their spending in local markets from $50.2 billion in 2013 to 68.9 billion in 2018, growing at a 6.5% compounded annual growth rate. The chart below shows the annual estimates of the spending in local media markets by national and local advertisers.
One of the key drivers in this growth is the growth in mobile advertising. While local advertisers will grow in importance, national advertisers will still account for 70% of all mobile advertising in 2018, resulting in over $11 billion in advertising spending. Pure online advertising will also see growth coming from national advertisers, resulting in $20.8 billion being spent in 2018.
Clearly, advertisers of all sorts are looking for all ways to reach their existing and potential customers. Increased usage of local media outlets by national advertisers is just an example of that.