According to a recent article published by by Ad Age, the latest local ad revenue forecast from BIA/Kelsey confirms that revenue from local-focused online ads will exceed that of traditional ads aimed at local audiences by 2018.
“BIA/Kelsey forecasts that in local markets, digital advertising, including mobile, will grow from $44.2 billion in 2016 to $50.2 billion in 2017 — a 13.5% increase. Meanwhile, the use of traditional media for local ads is expected to drop by 2.4% from $101.1 billion in 2016 to $98.6 billion in 2017. Local ad revenue from all platforms is expected to rise to $148.8 billion in 2017, a modest increase of 2.4% compared to this year.”
The good news is, according to Mark Fratrik, senior VP-chief economist at BIA/Kelsey, “The move towards digital platforms for targeted local ads does not signal the death knell of traditional ads, as marketers will continue to use a range of media tools to reach local markets. Even though digital is continuing to grow as an advertising segment, advertisers are not completely abandoning other modes of advertising such as broadcast, outdoor and radio.
What does this mean for local sellers? Integrating local radio assets with digital gets you a greater share of your client’s advertising dollars. By tapping into ad dollars beyond the broadcast budget, it opens up the opportunity for additional revenue. Why is this? Local advertisers are going to buy digital, period. It is an advertising medium that they know that they need to be a part of. To be completely transparent, yes – it is possible that some local advertising budget may come from traditional media budgets. However, as a seller, wouldn’t you rather have those digital dollars spent with you instead of a competitor?
By offering digital to small businesses, you are helping them keep up with consumers. You are simply expanding the reach of who they are trying to target through their marketing efforts. Instead of a potential customer just hearing a radio ad or seeing a tv commercial, digital can work to take the marketing message even further. Not only that, offering digital to your clients can actually even improve your client relationships and results. How? Because digital is so trackable, you are able to show your clients real, transparent results. You are able to provide to them data to help them determine if they are getting results. Each month, you will be able to provide to your clients monthly reports that will measure impressions, click through rate, conversions, view throughs, and top performing creative.
