Local Ads To Hit $148.8 Billion In 2019, Traditional Media Share Drops

Although local media will continue to see rising digital ad revenue, traditional media -- at least in the near term -- will retain a majority share.

BIA Advisory Services says traditional media will have 60% share of the overall local media spend in 2019 -- $89.2 billion -- with digital ad revenue at a 40% share, with $59.5 billion.

BIA is slightly raising its original overall local media estimate for 2019 to $148.8 billion -- based on a strong economy, early strength in political advertising and rising mobile advertising.

A year ago, BIA estimated local advertising for 2018 at $151.2 billion, growing from $143.8 billion in 2017. Traditional media’s share last year was 64.7%, and digital media was at 35.3%.

Digital advertising revenue is estimated to see a 9% rise -- the compounded average growth rate (CAGR) -- over a four-year period, 2019 through 2023. At the same time traditional media will slip at a 1.4% CAGR over the same period.

Digital media -- which includes direct solicitation, coupons and catalogs -- will maintain the largest piece of local advertising, with a 25% share at $37.2 billion.



All local video -- over-the-air TV, local cable, local online video, out-of-home video and mobile video -- will total $29.5 billion, for a 19.9% share.

Mobile advertising is now at $21.8 billion -- a 14.6% share -- and growing. Mobile social advertising is contributing the most to overall spending. BIA says national advertisers drive a large portion of the localized share of mobile ad revenue.

Local advertising going to desktop/laptop/tablet devices will be at $20.2 billion, for a 13.6% share -- with spending increasing across all online segments, including online video rising, and desktop video and search increasing at a double-digit CAGR.

Local radio is at $14.5 billion -- a 9.8% share, with over-the-air radio advertising declining.

1 comment about "Local Ads To Hit $148.8 Billion In 2019, Traditional Media Share Drops".
Check to receive email when comments are posted.
  1. Eric Nelson from Dicom Inc., July 9, 2019 at 1:16 p.m.

    This makes almost no sense.  The combination of device and medium makes this data useless and invalid.  Local Video for example can be played on mobile or PC devices.  Radio can also be played on multiple devices. This just seems a missed matched data set taht isnt clear on what its actually trying to measure.

Next story loading loading..