Using a definition of the local media marketplace as “all local media/services that provide access to local audiences,” BIA/Kelsey estimates total advertising spending on local media this year to be $132.7 billion, per data included in a newly-released study. Traditional media channels continue to dominate local advertising spend, per this definition, with direct mail (27.2%), newspapers (16.1%), TV (14.9%), and radio (11.5%) alone accounting for an estimated 7 of every 10 dollars spent accessing local audiences.
Beyond those top 4 traditional media lies the rising online/interactive (8.6%) segment, followed by out-of-home (5.8%), cable (5.4%) and Yellow Pages (5.1%). Magazines (2.4% share) are getting a small slice of the pie, as is mobile (1.7%) – for the time being.
Previous forecasts from BIA/Kelsey have projected big increases in local mobile advertising in coming years, while suggesting that traditional media’s dominant share of local mobile advertising dollars will gradually fall during that time span.
Meanwhile, the latest BIA/Kelsey data comes from a study focused on local radio, with that study indicating that local radio generates the bulk (almost three-quarters) of its revenues from 5 industries:
- Retail (18% share of local radio revenues);
- Financial/insurance (17%);
- Restaurants (14.5%);
- Automotive (14%); and
- Technology (10%).
In particular, finance and insurance companies (14.3%) and restaurants (12.1%) spend an above-average share of their local advertising dollars on local radio.