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.
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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.
