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America's local media ad revenue to reach $148.8 bn in 2017

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MUMBAI: America‘s independent media research company BIA/Kelsey has forecasted the local media advertising revenues to climb from $132.5 billion in 2012 to $148.8 billion in 2017 representing a compound annual growth rate (CAGR) of 2.3 per cent.

In its newly released U.S. Local Media Forecast (2012-2017), the firm reports national brands accounted for 32.1 per cent or $42.5 billion of the $132.5 billion spent on local media advertising in 2012. National‘s share of local ad spending is expected to grow to nearly $51 billion by 2017.

"Local media has become a key channel, not only for local small businesses, but for regional businesses, national franchises and national brands targeting locally. This is clearly seen in our tracking of market shifts in mobile, social, search, promotions, coupons and deals, native ads and sales transformation," said BIA/Kelsey VP and chief economist Mark Fratrik.

Digital media continues to increase its share of total local media revenues, growing from 17.4 per cent in 2012 to 27.6 per cent in 2017.

The firm expects traditional local media revenues to decrease from $109.4 billion in 2012 to $107.6 billion in 2017 (CAGR: -0.3 percent). As anticipated, traditional media revenues experienced a bump in 2012 from political advertising.

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.

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