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.