SMBs to Increase Share of Local Ad Spend - Radio World

SMBs to Increase Share of Local Ad Spend

BIA/Kelsey sees local media sector growing
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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.

Media 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.

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