Source: BIA/Kelsey [download page]
Notes: Local advertising spending is expected to increase by a compound annual rate of 3.6% from 2015 through 2020, when spending will total $168.9 billion, according to the latest forecast from BIA/Kelsey. Traditional media spend is projected to stay stagnant (CAGR of -0.1%) while digital spend will grow by double-digits (CAGR of 11.7%) through the forecast period, such that digital will rise from 26.9% of local ad revenues this year to 39.1% in 2020.
Highlights from the forecast include:
- Location-targeted mobile ad spend increasing at a compound annual rate of 25.7%, from $8.5 billion this year to $26.7 billion in 2020, at which point location-targeted ad spend is expected to capture 43% of mobile ad spend in the US;
- Local display increasing at a faster CAGR than local search (5.7% vs. 4.1%), buoyed by strong growth prospects (CAGR of 18.7%) for local video display; and
- Local social advertising climbing by a 27% compound annual rate, faster than the rate for national social advertising (18.7%).
It’s worth noting that location-targeted mobile advertising is defined as “mobile advertising that is targeted based on a user’s location, or including proximity-relevant content to trigger local offline conversions.” It does not include advertising that appears on tablets.