Our Local Advertising Forecast projection for 2018 shows the largest annual ad increase in the past five years. While local advertising marketplace revenue has been growing steadily, total local advertising revenue in the U.S. will reach $151.2 billion in 2018, up from $143.9 billion this year, representing a growth rate of 5.2 percent.
“The strong economy and the expectation of highly-competitive statewide political races next year reinforce our outlook that local advertising revenue will show strong growth in 2018, in fact, higher than we’ve seen for five years,” said Mark Fratrik, chief economist and SVP at BIA/Kelsey. “Combine these factors with the continued strength of traditional and online media and the revenue landscape for next year looks robust.”
What’s driving the significant growth in 2018?
Looking at the top categories for 2018, traditional channels are strong yet mobile takes the third spot with social contributing to the mobile growth.
The forecast also projects significant ad spending in native social advertising in 2018 due to its ability to target and reach local consumers. Social media ad revenues from mobile (not including tablets) now represent about 71 percent of total social ad spending and will grow to nearly 80 percent by 2022 as more of the user activity shifts away from desktops.
“Social channels such as Snapchat and Instagram have evolved their mobile native ad models to include new targeting and reporting features, “Fratrik said.
BIA ADVantage clients can login to the dashboard to view the full forecast. A client briefing will be held on Wednesday, Dec., 13.
The forecast can be purchased separately online. For information on gaining access to the forecast by becoming a BIA/Kelsey client, contact Mark Giannini, COO and SVP, business development, at email@example.com or (703) 818-2425. BIA ADVantage clients can login to the dashboard to view the full forecast. A client briefing will be held on Wednesday, Dec., 13.