BIA/Kelsey Forecasts Continued Growth in Digital
According to BIA/Kelsey’s Media Ad View Plus forecast, automotive and financial/insurance advertising in local media channels is on the rise.
The company predicts the total local ad spend for the automotive sector will grow from $16.1 billion in 2012 to $17.5 billion in 2017, increasing its share of online advertising from 7.4% to 12%, and mobile from 0.5% to 4.4% in that same period. Similar changes are expected from the financial/insurance category, which will climb from $12.6 billion in local ad spending to $15.3 billion, with the mobile spend growing from 1.6% to 9.8%.
BIA/Kelsey expects the overall local ad market, defined by the company as advertising placed purely on local media outlets and including national, regional and local ads, will climb from $132.5 billion in 2012 to $148.8 billion by 2017.
“Online and mobile continue to be the top growing ad channels. By 2017, the real estate business category will increase its online ad spend to an astonishing 40.8% and automotive dealers will focus on video, spending 11.4% of their $2.4 billion online ad budget on video display,” said Mark Fratrik, vice president and chief economist, BIA/Kelsey.
Media Ad View Plus also shows that by 2017 newspapers’ share of real estate advertising will decrease to 7%, while online’s share will grow by nearly 18%. The report indicates that the quick service restaurant category will increase its online spending from $434.4 million to $618.6 million during that period.