SMBs to Increase Share of Local Ad Spend
Small to medium-sized
businesses account for about 36 percent of local media spending. So finds
BIA/Kelsey, which is getting ready to publish a forecast for U.S. local media
spending for 2015.
The research company thinks spending on local media by “SMBs” will total $50.4 billion in 2015. Of that, the small/medium-sized
businesses will allocate $37.7
billion to traditional media and $12.4 billion to digital.
“SMB spending on
local media is on par with that of national brands, which will spend $50.5
billion on local media in 2015, representing 35.9 percent of total local media
spending,” the company stated. “An additional $39.8 billion in local media
spending will come from local brands that are not SMBs.”
It believes each of these local advertiser segments — SMBs, national
brands and non-SMB local business — will increase local media spend by
double-digit percentages. The chart below projects total local media advertising growth to 2019.
segments covered include radio, newspapers, over-the-air TV, cable TV,
out-of-home, direct mail, directories, magazines, online, mobile and social.
BIA/Kelsey also has shifted release of its annual forecast to
the fall, when clients are starting budget planning.