Local advertising revenues will climb slowly over the next four years.
Revenues will inch up by a compound annual growth rate of 2.3% through 2017, getting to $148.8 billion from $132.5 billion in 2012, per BIA/Kelsey.
National consumer brands currently account for around a third of all local advertising dollars, or $42.5 billion. This is expected to grow to $51 billion in four years.
Digital media will continue to rise by double-digit increases, with its share climbing -- to 27.6% in 2017, from 17.4% in 2012. Last year, BIA/Kelsey estimated that local digital advertising revenue would climb to $38 billion in 2016 from $21 billion in 2011.
Traditional local media will drift lower to $107.6 billion in 2017, from $109.4 billion in 2017. That is a compound annual rate decline of 0.3%. Local political advertising witnessed its usual jump in big election years -- and that trend will continue.
"Local media has become a key channel, not only for local small businesses, but for regional businesses, national franchises and national brands targeting locally," stated Mark Fratrik, vice president and chief economist, BIA/Kelsey. "This is clearly seen in our tracking of market shifts in mobile, social, search, promotions, coupons and deals, native ads and sales transformation."