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BIA/Kelsey: National Brands Accounted for One-Third of Local Ad Revenue in 2012

CHANTILLY, VA. – Local media looks good to national advertisers, according to BIA/Kelsey’s latest numbers. The market research firm said national brand accounted for one-third of local ad spending in 2012.

Overall, the firm forecasts local media ad revenues will climb from $132.5 billion in 2012 to $148.8 billion in 2017, a compound annual growth rate of 2.3 percent. National brands accounted for 32.1 percent or $42.5 billion of the $132.5 billion spent on local media advertising in 2012, BIA/Kelsey’s report, “U.S. Local Media Forecast 2012-2017,” said. The national share of local ad spending is expected to grow to nearly $51 billion by 2017.

“Local media has become a key channel, not only for local small businesses, but for regional businesses, national franchises and national brands targeting locally,” said Mark Fratrik, vice president and chief economist, BIA/Kelsey. “This is clearly seen in our tracking of market shifts in mobile, social, search, promotions, coupons and deals, native ads and sales transformation.”

The report said digital media portion of total local revenues continues to rise, with growth projected to go from 17.4 percent in 2012 to 27.6 percent in 2017.

BIA/Kelsey expects traditional local media revenues to decrease at a CAGR of -0.3 percent, from $109.4 billion in 2012 to $107.6 billion in 2017. Traditional media revenues experienced a bump in 2012 from political advertising, as expected, which also translates into a dip in non-election years. Despite this “year-over-year political advertising seesaw effect,” BIA/Kelsey said, “traditional media revenues remain remarkably steady throughout the forecast period.”