Digital Ad Spend Overtakes Local Media Competitors

Media Post

U.S. ad spend­ing, which used to be heav­i­ly focused on local media and TV spots, has shift­ed to nation­al media and dig­i­tal pub­li­ca­tions.

Automak­ers and deal­ers need to under­stand this trend in ad spend­ing.

Growth prospects for U.S. ad spend­ing this year haven’t been all that bright, with most fore­cast­ers pre­dict­ing increas­es in the low sin­gle-dig­it range on a per­cent­age basis.

Now, accord­ing to Piv­otal Research, there won’t be any growth at all. Accord­ing to a new­ly issued Piv­otal report ad rev­enues will decline in the U.S. by 0.5% to $176.25 bil­lion. Ear­li­er, the com­pa­ny had pegged growth this year at 1.2%.

Adver­tis­ers will con­tin­ue to shift dol­lars away from local media. Piv­otal pre­dicts rev­enues in that sec­tor will decline 1.6% to $61.5 bil­lion.

News­pa­pers will expe­ri­ence anoth­er sharp decline per the Piv­otal report, issued today by senior research ana­lyst Bri­an Wieser. Local news­pa­per rev­enue will fall by more than $1.6 bil­lion or 9% to $16.57 bil­lion.

Local radio rev­enue will also take a hit with Piv­otal fore­cast­ing a 1.6% drop this year to $13.9 bil­lion.

In nation­al media, Eng­lish-lan­guage broad­cast net­work TV is a lag­gard this year with rev­enues expect­ed to decline near­ly 2% to $13.36 bil­lion, per the Piv­otal fore­cast. Cable will be up 5% to $24 bil­lion and Span­ish-lan­guage will be up more than 7% to $1.35 bil­lion.

Dig­i­tal rev­enue growth will con­tin­ue to be robust this year, par­tic­u­lar­ly in the nation­al seg­ment accord­ing to the report. Nation­al dig­i­tal dol­lars are expect­ed to climb near­ly 15% to $12.9 bil­lion. Local dig­i­tal rev­enue will be up 7% to $4.8 bil­lion.




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