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.
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In response, the digital team reallocated a portion of paid-search dollars to boost SEO and conducted a thorough technical site audit, which drove higher value for the corporation. And one high-tech company reallocated spending from low-performing paid search and display advertising and invested in its website. By profiling different consumer paths for all incomplete checkouts on its website, it developed a tailored retargeting strategy for each type of consumer, which resulted in a twofold increase in ROI.
Are aggressive advertisements helpful for selling small auto parts like car horn, car sound system or stickers businesses? I think you can’t spend a lot unless you can see a sure return in the future. This may be true for big businesses but for small businesses you have to be careful.