An early start to the 2020 election, a strong economy, and most notably, increases in mobile and mobile-social advertising is driving the $148.8 billion estimate for local ad spend. BIA is raising its original estimate put out earlier this year slightly an has an update to its U.S. Local Advertising Forecast 2019.
“This is a very interesting time for local media,” said Mark Fratrik, SVP and chief economist at BIA. “Although it’s a non-political year, the sheer number of Democratic candidates running and the significant attention this presidential race is garnering is driving earlier than usual advertising revenue across television and mobile/social channels.”
Traditional media is forecast to account for 60% of the overall spend, $89.2 billion, with digital ad revenue at 40% ($59.5B). However, online/digital advertising revenue is forecast to grow at a compound annual growth rate (CAGR) of 9% from 2018-2023, while traditional advertising revenues are forcast to decrease at a CAGR of -1.4% over the same period.
Fratrik noted, “we are more bullish on certain digital advertising platforms like mobile due to its targetability, measurability, attribution and high level of adoption by consumers.”
The U.S. Local Advertising Forecast 2019 can be purchased on BIA’s online store.