2012-17: Auto, Financial Local Ad Spend Up

Automotive and financial/insurance advertising in local media channels is growing steadily, according to BIA/Kelsey’s Media Ad View Plus forecast released today. BIA/Kelsey said it expects the total local ad spend for the automotive sector will grow from $16.1 billion in 2012 to $17.5 billion in 2017, increasing its share of online advertising from 7.4% to 12%, and its mobile advertising from 0.5% to 4.4% in that same timeframe.

Similar leaps are expected from the financial/insurance category, which will climb from $12.6 billion in local ad spending to $15.3 billion, with the mobile spend growing from 1.6% to 9.8%.

As reported in March in its U.S. Local Media Forecast (2012-17), BIA/Kelsey expects the overall local ad market will climb from $132.5 billion in 2012 to $148.8 billion by 2017. To supplement the forecast and offer a more detailed picture of advertising trends and competitive market intelligence, the firm is now releasing its Media Ad View Plus forecast that offers both a local and a national comparative forecast that allows businesses to evaluate market opportunities across multiple dimensions: local markets, media and business categories.

“The local media market continues to experience positive growth as media buyers look both locally and nationally to identify the right mix of traditional and digital channels for reaching local targets,” says Mark Fratrik, BIA/Kelsey VP-chief economist. “Online and mobile continues to be the top growing ad channels. By 2017, the real estate business category will increase its online ad spend to an astonishing 40.8% and automotive dealers will focus on video, spending 11.4% of their $2.4 billion online ad budget on video display.”

Media Ad View Plus also reveals that by 2017 newspapers’ share of real estate advertising will decrease from 27.7% to 7%, while online’s share will grow by nearly 18%. The report also shows that the quick service restaurant category (subset of restaurants) will increase its online spending from $434.4 million to $618.6 million during that same time period.

BIA/Kelsey defines local media advertising as advertising placed purely on local media outlets, including national, regional and local ads on radio stations, television stations and newspapers.

Covering 12 media, 12 ad categories and more than 94 detailed business categories, BIA/Kelsey’s Media Ad View Plus  tracks local advertising spending by media for the most recent year and five years out (2012-17) for every local market. Markets are organized by the 362 Core Based Statistical Areas (CBSAs) or 210 television markets.

For example, for market No. 1, New York, the 2012 total ad spending for 12 media across 12 categories  is $9.35 billion, with TV accounting for $1.3 billion. This is also broken down by media per population, per household and per $1,000 or retail sales with corresponding estimates for 2017.

That $9.35 billion total is estimated to rise to $10.3 billion in 2017, and TV’s share to $1.5 billion.

Online accounted for $809.9 million in 2012, climbing to $1.2 billion in 2017. Newspapers total last year was $1.7 billion in New York, falling to $1.3 billion in 2017.

BIA/Kelsey will preview its 2013 Media Ad View research, forecast, trends and methodology behind the numbers, during a free webinar on Wednesday, June 19, at 2 p.m. ET. More information and webinar registration is available here.