Local Ads To See Big Growth In 2016, Digital To Soar

Local advertising will soar by over 15% this year -- due to growing digital platforms with a rush of political advertising dollars.

A Borrell Associates report says local advertising will climb 16.4% to $132 billion in 2016 from $113 billion in 2015. This study is much strong than other single-digit growth expectations.

Some $5.5 billion will come from state and local elections in a political ad year.

Digital will see major growth as media platform -- up 36.4% to $65.9 billion, $17 billion more spending from local business on digital media than in 2015. Digital will have nearly a 50% share of local advertising expenditures, rising to two-thirds in four years.

Breaking down the digital category, targeted display will have the largest share, $46.3 billion; followed by digital video, $8.3 billion; and and paid search, $6.4 billion.

Traditional linear TV platforms will also witness big gains -- climbing 19.7% to $12 billion.

On the flip side, local newspapers -- the second-largest category -- will have a 4.6% decline to $13.5 billion. Radio will slip 1.2% to $10 million.

Other categories: Local cable will climb 5.6%; outdoor, up 1.6%; and magazines, 1.1% higher. Directories will slip 6.2% and direct mail losing 4.5%.



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