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.
Receive regular news and technology updates. Sign up for our free newsletter here.