Mobile: The new high-end advertising platform
Overall, digital ad spend will hit $ 76.8 billion, with Google and Facebook controlling more than half of the spend. Google takes the lion’s share with $ 26.8 billion, compared to Facebook’s 14.3 billion.
Ducey highlights four reasons why mobile has become the number one advertising medium: (1) the impact of COVID on increasing the time consumers spend with mobile and other digital media, making digital the place where to find and target consumers; (2) the global digital momentum to earn a greater share of the traditional media media time revenue; (3) the rise of virtual consumption channels like delivery, curbside pickup and e-commerce in major categories like retail, restaurants, CPGs where physical channels like store visits detail decrease; and (4) greater consumer acceptance and use of virtual and e-commerce channels.
Mark Fratrik, senior vice president and chief economist of BIA, said the company’s local advertising forecast in the United States also projects an increase in local radio advertising revenue in 2022 and is expected to generate $ 12.7 billion. dollars split between airwaves ($ 11.0 billion) and digital ($ 1.7 billion). By 2026, digital radio revenues are expected to reach $ 2.4 billion, while OTA fluctuates with even political years and ends at $ 11.7 billion in 2026.
“Radio does not fare as well as local television, and it does not have the same bump as television during the political years,” said Fratrik. “But it is approaching its pre-pandemic levels as people continue to return to work, commute to work and travel by car.”
“I like to call our data on local television our ‘piano key charts’, because even during political years it’s very evident that ad revenue will rise and then fall the following year.”
As reported at the end of September, BIA predicts that local television in 2022 will reach $ 19.3 billion in OTA advertising and $ 1.7 billion in digital; a sign of a $ 21 billion strong industry that offers its audience to political activists.
U.S. Local Ad Forecast Report