Traditional Ads Flat, Local Digital Forecast To Hit $71B In 5 Years

Traditional local advertising will remain flat in the next five years -- with local digital advertising experiencing continued double-digit percentage compounded growth.

BIA/Kelsey says overall local advertising will grow at a compounded annual growth rate of 4.2% to $172.2 million by 2020.

Local digital advertising -- online, interactive, digital -- revenues will grow 12.8% on a compounded basis in five years to $71.6 billion. This represents 41.6% of all local advertising, up from a 28% share in 2015.

BIA/Kelsey says digital growth will be mostly from mobile and social -- coming at the expense of traditional print media.

For 2016, the media research/consultancy now estimates direct mail spending will hit $36.9 billion; local TV, $21.9 billion (it had estimated $22.3 billion in February); newspapers, $17.4 billion; online/interactive, $17.3 billion; and radio, $15.4 billion.

BIA/Kelsey defines local advertising to include U.S. ad spending in local markets for direct mail, local video, local over-the-air television, local cable television, out-of-home/ OOH video, newspaper, online, radio, mobile, directories, social and local magazines.

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