Last November, BIA issued its 2023 U.S. Local Advertising Forecast, which provides our expectations on nationwide ad spend across all media and key business verticals. The forecast indicates that our analysts expect a slight decline of in local advertising in 2023 ($165.7 billion) compared to 2022 ($166.5 billion).
Explaining the expected decline, our head of forecasting, Nicole Ovadia, indicated contrasting economic indicators for the last three years have created significant challenges for the local advertising marketplace. For example, at the end of 2022, inflation and recession fears were stalling anticipated rebounds in key verticals such as automotive, yet retail showed strength during the holiday season.
To sort through the challenges and opportunities, BIA is hosting a three-part podcast series in January called: New Year New Insights. In each episode, our analyst team will dig into our U.S. Local Ad Forecast to provide insights and recommendations for the verticals profiled. Discussions will cover when a vertical is expected to rebound in comparison to 2019, the top media chosen for advertising, the share of wallet between digital and traditional media and what trends are affecting advertising. Each episode will also provide selling tactics for successful local selling.
This first episode covers two powerhouse verticals for local advertising: Auto and Retail. Hear from BIA’s Leyla Chatti, Senior Media Analysts, at BIA and Mark Dugan, our Director of Data Insights, and Client Relations, discuss estimates on overall ad spending, how trends (like EVs) are driving ad spend and how positive news around holiday shopping is shaping expectations for the new year.