BIA Estimates Local Broadcast TV Ad Revenues to Top $23.8 Billion in 2024, Bolstered by Political and Increased Auto and Legal Ad Spending
BIA CEO Addresses Television’s Share of the Local Advertising Marketplace for Key Ad Spending Verticals…
CHANTILLY, Va. (April 28, 2014) – In its newly released U.S. Local Media Forecast (2013-2018), BIA/Kelsey, adviser to companies in the local media industry, forecasts local media advertising revenues to climb from $133.2 billion in 2013 to $158.6 billion in 2018, representing a compound annual growth rate (CAGR) of 3.6 percent. Digital media continues to increase its share of total local media revenues, growing from $31.7 billion (23 percent) in 2014 to $52.7 billion (33.2 percent) in 2018.
“While the U.S. economy is not expected to grow very quickly over the next few years, we estimate the overall local media market will grow faster than previously thought through 2018,” said Mark Fratrik, senior vice president and chief economist, BIA/Kelsey. “Based on positive trends in the overall local media marketplace, such as faster growth in online and mobile advertising, and the fact that national and local advertisers were slightly more aggressive in their advertising expenditures in 2013 than originally thought, we are optimistic on the entire industry’s ability to grow advertising revenues.”
BIA/Kelsey expects revenue from traditional media, in aggregate, to slightly increase from $105.3 billion in 2013 to $105.9 billion in 2018 (CAGR: 0.1 percent). As expected, the political ad spend cycle contributes to a drop in revenues in odd-numbered years. Despite the year-over-year political advertising seesaw effect, traditional media revenues remain remarkably steady throughout the forecast period.
BIA/Kelsey analysts will present highlights from the forecast at the firm’s LEADING IN LOCAL: The National Impact conference, taking in Atlanta May 7-9. LEADING IN LOCAL is gathering senior executives from across the local media, advertising and marketing space, as well as brands, to examine how national’s local play is having an impact on local media.
The forecast is issued annually each spring and updated in the fall. In addition to the main forecast, drilldowns into key coverage areas are available. These coverage areas include Interactive/Online, Mobile, Video and Yellow Pages. The Social forecast will be published in early May. More details on these forecast segments are available here.
BIA/Kelsey defines the local media advertising marketplace as those media that provide local audiences to all types of advertisers. BIA/Kelsey’s Annual U.S. Local Media Forecast (2013-2018) draws from proprietary data; company, industry and country information in the public domain; and discussions with clients and non-clients about the direction and pace of development in the local media marketplace.
BIA/Kelsey custom advisory service clients receive the forecast reports. For information on gaining access to the forecast by becoming a BIA/Kelsey client or for details on purchasing the forecast, contact Steve Passwaiter, VP, business development, at email@example.com or (703) 818-2425.
BIA/Kelsey advises companies in the local media space through consulting and valuation services, research and forecasts, Custom Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at http://www.biakelsey.com, on the company’s Local Media Watch blog, Twitter (http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey). Stay connected by subscribing to the firm’s bi-monthly newsletter.
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