Local Ads Up Single Digits In 2017, Digital Gains Sharper

Local advertising revenues will inch up by small single-digit percentage growth next year -- with local digital/online business continuing to soar by much higher gains.

Media researcher BIA/Kelsey says overall local media advertising will grow 2.4% to $148.8 billion.

All online/digital advertising -- pure-play as well as traditional media-based digital efforts -- will remain a major performer -- gaining 13.5%, to $50.2 billion in 2017 from $44.2 billion in 2016 .

There will be 2.4% decline next year for traditional print and over-the-air advertising revenues, rising to $98.6 billion in 2017.
from $101.1 billion in 2016. The online/digital local ad share is estimated to exceed the share of print media by 2018.

Local TV will see a decline to $19.7 billion, says BIA/Kelsey, from $20 billion to $21 billion this year, according to a number of other estimates. TV will have a 13.3% share of all local media, while digital-based local TV is estimated to be $1.04 billion next year.



Direct mail will still command the largest share for local media -- 24.9% -- getting to $37.1 billion.

Looking at specific major digital areas, mobile advertising will command a 10.8% share of local media -- $16.1 billion. Local desktop display advertising (which include video and social) will grow 10.3%; local search on desktop devices will climb 5.7%. Email advertising will climb 4.7% to $2.68 billion.

Long term, BIA/Kelsey says the local media market will rise to $156.8 billion in 2018; $162.0 billion, 2019; $170.6 billion, 2020; and $174.9 billion in 2021.

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