U.S. Local Advertising Spend To Increase 7.6% In 2018

• by Laurie Sullivan  @lauriesullivan, Yesterday

Local advertising in the U.S. will increase 7.6% in 2018, up from 0.4% in 2017, according to new data from Borrell Associates.

Estimates for 2018 U.S. local ad expenditures highlight billboards as one of the only traditional media to show growth in the coming year as the sector moves toward digital, Gordon Borrell, founder of Borrell Associates, said during a webinar Wednesday.

Compared with 2017, rising sectors in 2018 include telemarketing at 1.4%, out-of-home, 2.8%, local TV, 14.6%, and online, 16.8%.

Directories will fall by 10.1% in 2018 compared with the prior year. Newspapers will fall 10.3%; while other print will decline 7%; radio, 3.0%; direct mail, 2.8%; cable TV, 2%; and cinema remaining flat.

The study, conducted between April and July 2017, analyzed responses from 3,511 respondents. About 22% of advertisers participating in the study consider themselves master marketers; 56%, novice marketers; 35%, apprentices; and 7%, practitioners.

When marketers were asked what type of media used were most effective, marketers said social, broadcast television, search, email marketing, and cable TV. Behavioral targeted advertising followed, along with event marketing, geotargeting, native ad formats, postal mail, and video ads.
While 76% of respondents said they are using some type of digital advertising, on average only 26% of the dollars spent go to digital media such as social, search, and email.

Marketers say social media is important, but marketers will only invest about 4% of their budget there.

Email marketing is used by 47% of respondents, but less than 1% of the budget goes to this media.
Broadcast TV is used by fewer respondents, but those who use the media spend the most of their ad budgets there. Even with fewer marketers using broadcast TV, marketers say the value outpaces other widely used media.

Borrell estimates 5.9% as the average of gross revenue spent on advertising. Broadcast TV takes 22%, cable TV, 12%; radio, 11%; search engine marketing, 8%; outdoor, 6%; postal, 6%; event maketing, 4%; social media, 4%; magazines, 3%; display ads, 3%; impression-based, ROS ads, 2%; and 18 other types, 12%.