In its new U.S. Local Advertising Forecast 2017, BIA/Kelsey, projects total local advertising revenues in the U.S. to reach $148.8 billion in 2017, up from $145.2 billion this year, representing a growth rate of 2.4 percent.
Faster growth in online/digital advertising revenues is a major component of the projected increases in the overall local advertising pie. BIA/Kelsey estimates online/digital will increase at 13.5 percent, from $44.2 billion in 2016 to $50.2 billion in 2017. That compares with a decrease of 2.4 percent next year for traditional – print and over-the-air – advertising revenues, going from $101.1 billion in 2016 to $98.6 billion in 2017.
“A range of factors will drive local ad revenues higher in 2017 and through the end of the next year,” said Mark Fratrik, SVP and chief economist at BIA/Kelsey. “An improving U.S. economy, increased spending by national brands in local media channels, extraordinary growth in mobile and social advertising, and the continued expansion and selection of online/digital advertising platforms. In fact, we are predicting that online/digital local ad share will exceed the share of print media by 2018.”
