National Advertisers Forecast To Spend More On Local Media Than Local Marketers

MediaDailyNews

by Wayne Friedman, Yesterday, 1:03 PM

National advertisers' spending on local media will grow at a faster rate than spending by local marketers in the coming years.

Some 43.4% of local media budgets will come from national advertisers -- $68.9 billion -- by 2018, according to Chantilly, Va.-based BIA/Kelsey forecast. Currently, national advertisers represent a 37.7% share in 2013, or $50.2 billion.

National advertisers are forecast to spend $54.4 billion (39.4%) in 2014; $56.1 billion (39.4%) in 2015; $61.4 billion (41.7% ) in 2016; and $63.4 billion (41.8%) in 2017.

Through the next five years, local advertisers will still continue to comprised the bulk of all spending on local media. It will tally $83.0 billion in 2013.

BIA/Kelsey expects local advertisers' contributions to rise through 2018 -- but at a much slower rate than national advertisers' -- $83.6 billion in 2014; $84.7 billion in 2015; $85.7 billion in 2016; $88.1 billion in 2017; and $89.7 billion in 2018.

Mark Fratrik, senior vp/chief economist of BIA/Kelsey writes:

“One of the key drivers in this growth is the growth in mobile advertising. While local advertisers will grow in importance, national advertisers will still account for 70% of all mobile advertising in 2018, resulting in over $11 billion in advertising spending.”

He adds:  “Pure online advertising will also see growth coming from national advertisers, resulting in $20.8 billion being spent in 2018.”