Local Ad Spending Begins Recovering, BIA Forecasts 2.5% Growth Next Year

Against the backdrop of double-digit percentage declines in U.S. local media spending this year, 2021 will recover somewhat -- up 2.5% over 2020 to $137.5 billion, according to BIA Advisory Services.

The research company says 2021 spending levels for advertising dollars will be lower than 2019 -- when it was estimated that a total $161 billion was spent.

The market this year was hurt by COVID-19 pandemic-related issues, with total U.S. local advertising projected to be down 17% from 2019, totaling $134.1 billion.

BIA says it does not expect a full recovery until 2022.

For next year, the research company expects only mobile and online and interactive advertising to grow -- up 18.4% to $23.4 billion and 9.5% to $23.3 billion, respectively.

Together mobile and online represent a third of all U.S. local advertising.

Direct mail -- the largest U.S. local media platform, with a 23% share -- will rise 2.2% to $31.2 billion.

Local TV will sink 14.2% to $15.7 billion next year -- largely due to an expected big boost with political advertising in 2020. Local radio will inch up 1.4% to $12.6 billion.

One of the biggest growth areas for TV station local OTT and CTV advertising --- up 20% to $1.2 billion in 2021 from $1.0 billion in 2020.



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