Political and over-the-top advertising, plus growth in mobile and social ads will be key elements in local media next year.
The analysts say that’s up 2.4% from this year’s projected $145.2 billion. Digital ad revenue increases are driving the growth, they say, up 13.5% to $50.2 billion. Broadcast and print revenues will take a 2.4% dip, however, to $98.6 billion in 2017.
A new report from BIA/Kelsey says that while television stations will experience many new challenges between now and 2020, they will also maintain an important presence in the local media marketplace, remaining a major part of national and local advertising plans.
BIA/Kelsey forecasts U.S. local television station advertising revenues to reach $20.8 billion in 2016, up 12.1% from 2015. In addition, TV station online ad revenues will grow to just over $1billion in 2016, up 13.3% over last year.
BIA/Kelsey is projecting local ad revenue to grow at a rate of 2.8% per year, hitting $151 billion by 2017. The firm had previously forecast an annual rate of 2.3%, but revised its report based on an expected increase in online ad spending.
That’s up from $1.32.5 billion in 2012. According to BIA/Kelsey, national brands accounted for nearly one-third of total U.S. local media ad spending last year. Digital media grows from 17.4% in 2012 to 27.6% in 2017.