Los Angeles may be the second largest market in terms of population, but BIA’s advertising forecast puts it firmly in 1st place in terms of local advertising spend -with BIA projecting $9.1 Billion in 2018. That’s almost half of the $18.8 Billion in local ad spend BIA forecasts for the entire state of California in 2018. Auto dealers and manufacturers are spending the biggest share of the $9.1B on over-the-air TV followed by digital advertising (with mobile showing the largest growth) and over-the-air radio.
“Our California ad forecast shows that key advertisers are getting more comfortable with a cross-platform advertising approach that includes significant mobile and digital along with their traditional advertising,” said Mark Fratrik, chief economist and SVP, BIA Advisory Services.
Other than Auto dealers several other key business categories are spending big in 2018 on advertising in Los Angeles?
Retail – $1.74 billion. The biggest spending sub-verticals in the retail are discount department stores, warehouse clubs and super centers, and home centers.
General Services – $1.07 billion. The biggest spending sub-verticals among General Services are legal services, architectural/engineering and related services, and accounting/ tax prep /bookkeeping /payroll services.
“We’ve been monitoring a major shift in ad spend over the last five years and believe we are at a tipping point where the ad wallet will be shared almost equally between digital media and traditional media in key verticals like retail and financial/insurance in California. As a result, traditional media is speeding up its efforts to enhance their selling of digital services like streamed programming and other digital services and their efforts are paying dividends.” said Fratrik.
BIA will present its California market intelligence to advertising and media executives at its LOCAL IMPACT Los Angeles conference at the Hotel Indigo on July 12.