Local Mobile Ads Soar, Growth Forecast To Surpass Traditional Media Ads

Local advertising on mobile devices is estimated to show continued strong growth for the next five years, overtaking local TV as the second-biggest local media platform.

This year, revenues will rise 30% to $22 billion from $17 billion last year, according to BIA/Kelsey, a local advertising researcher. Of the $22 billion, $3 billion will come from traditional media companies: radio, television and newspapers.

Over the next five years, local mobile advertising is expected to rise by a 17.8% and compound annual growth to $38.7 billion.

In 2018, direct mail retained its top position in local advertising -- with a 25.4% share ($38.5 billion); local TV is next at 13.8% ($20.8 billion).

Pure-play mobile providers will see $19 billion in 2018, representing 12.6% share. This is on a pace to reach 19.2% by 2022, overtaking local TV.

Overall, for this year, BIA/Kelsey says local advertising is set to rise 5.2% to $151.2 billion -- from $143.8 billion in 2017. Traditional media will comprise 64.7% of the revenue, with online/digital securing 35.3%.

BIA/Kelsey estimates come from analyzing the top 12 local media platforms.

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