BIA/Kelsey today released a new projection that puts SMB local ad spending “slightly ahead” of previous forecasts, with the sector expected to make up 35.8% of total local media spending in 2015. The firm predicts $12.4 billion of that spending will be in digital.
Through cross-media initiatives such as C7 ratings, mobile DTV and increasing online access to local broadcast content, TV stations are clearly aware and responding to the many rapid shifts in media consumption. That’s with good reason. Anticipating change is the best way to avoid some of the painful lessons in the history of media.
Digital and mobile advertising expected to be key drivers of this growth. Email marketing, mobile advertising and online video are also increasing in popularity among local media companies.
According to BIA/Kelsey’s Media Ad View reports, local ad spending will experience a compound annual growth rate of 2.6% between 2011 and 2016, with revenues climbing from around $132 billion to more than $150 billion. Mobile and online will account for the largest increase in local ad spending, nearly doubling from $11.1 billion in 2011 to $21.8 billion in five years.