part of this post is an excerpt from InsideRadio.com
BIA/Kelsey says strong gains for mobile and digital advertising are powering revenue growth, and, over the next five years, the total local ad market is expected to increase at a 3.8% compound annual growth rate to $174 billion by 2021. In a demonstration of digital’s strength, BIA/Kelsey says digital and mobile will grow at an 11.9% CAGR from 2016 to 2021, while traditional media will slow to a -0.6% decline over the same five-year period. The growth rate for digital ad revenue is higher than BIA originally projected, with mobile, social and local online and mobile video all expected to grow at least 17% by 2021.
BIA/Kelsey chief economist Mark Fratrik says while local businesses are not abandoning traditional media stalwarts, they are beginning to embrace digital media platforms. “We are on the precipice of different advertising channels taking lead positions in the local advertising marketplace,” Fratrik said. “Although national and local businesses still utilize a mix of digital and traditional advertising platforms, the opportunities afforded by mobile, social and video advertising are incredibly valuable due to their measurability, adoption by consumers and enhancements by technologies such as beacons and data attribution that blend extraordinarily well with today’s mobile consumer.”
“Mobile has replaced radio in the top five media this year, but the dominant player continues to be direct mail,” said Fratrik.
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