National Advertisers Forecast To Spend More On Local Media Than Local Marketers

National advertisers' spending on local media will grow at a faster rate than spending by local marketers in the coming years.

Some 43.4% of local media budgets will come from national advertisers -- $68.9 billion -- by 2018, according to Chantilly, Va.-based BIA/Kelsey forecast. Currently, national advertisers represent a 37.7% share in 2013, or $50.2 billion.

National advertisers are forecast to spend $54.4 billion (39.4%) in 2014; $56.1 billion (39.4%) in 2015; $61.4 billion (41.7% ) in 2016; and $63.4 billion (41.8%) in 2017.

Through the next five years, local advertisers will still continue to comprised the bulk of all spending on local media. It will tally $83.0 billion in 2013.

BIA/Kelsey expects local advertisers' contributions to rise through 2018 -- but at a much slower rate than national advertisers' -- $83.6 billion in 2014; $84.7 billion in 2015; $85.7 billion in 2016; $88.1 billion in 2017; and $89.7 billion in 2018.

Mark Fratrik, senior vp/chief economist of BIA/Kelsey writes:

“One of the key drivers in this growth is the growth in mobile advertising. While local advertisers will grow in importance, national advertisers will still account for 70% of all mobile advertising in 2018, resulting in over $11 billion in advertising spending.”

He adds:  “Pure online advertising will also see growth coming from national advertisers, resulting in $20.8 billion being spent in 2018.”

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3 comments about "National Advertisers Forecast To Spend More On Local Media Than Local Marketers".
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  1. William Hoelzel from JWB Associates, May 12, 2014 at 8:47 p.m.

    Not sure your headline is accurate.

    Headline says: "National Advertisers Forecast To Spend More On Local Media Than Local Marketers"

    Story says: "Through the next five years, local advertisers will still continue to comprised the bulk of all spending on local media. It will tally $83.0 billion in 2013."

    Data supports story:

    ¤ Local advertisers =·$88.1 billion (2017).

    ¤ National advertisers = $63.4 billion (2017).

    Right?

  2. Bob Gordon from The Auto Channel, May 13, 2014 at 11:35 a.m.

    In the "old" days.. TV stations had a Local and National Sales team and different rates for inventory... buh bye!

  3. Paula Lynn from Who Else Unlimited, May 13, 2014 at 8:26 p.m.

    Bob, newspapers still do.