Local Ad Spend Forecast, 2015-2020

November 4, 2015

This article is included in these additional categories:

Digital | Display & Rich Media | Local & Directories / Small Biz | Mobile Phone | Paid Search | Social Media | Spending & Spenders | Video

BIAKelsey-Local-Media-Ad-Spend-Forecast-2015-2020-Nov2015Source: 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.

      Related: Consumers Say Smartphones Top PCs For Local Shopping Research


      Explore More Articles.

      Marketing Charts Logo

      Stay on the cutting edge of marketing.

      Sign up for our free newsletter.

      You have Successfully Subscribed!

      Pin It on Pinterest

      Share This