Colorado Media Newsroom
August 7th, 2024, 03:00 AM
From Radio Insight:
https://i0.wp.com/radioinsight.com/wp-content/uploads/2020/06/bia.png?resize=200%2C200&ssl=1
BIA Advisory Services? latest U.S. Local Advertising Forecast (https://www.bia.com/forecasts/local-advertising-forecast/) delivers initial expectations for 2025 and updates spending estimates for 2024. The projected revenues across all local media in the U.S. will reach $171 billion in 2025. This represents an increase of 5.5 percent in non-political spending over our revised 2024 estimate. When including political advertising, the 2025 estimate represents a 1.3% decline from the revised estimate of $173.7 billion for 2024. In this forecast, BIA raised its 2024 local advertising estimate primarily due to an expectation of increased political advertising of $560 million.
?With macroeconomic conditions impacting 2024 local advertising spending, it has been slower than anticipated, and we’ve adjusted this year?s forecast,? said Nicole Ovadia, VP of Forecasting & Analysis, BIA Advisory Services. ?We’ve refined our projections for local advertising, both with and without political advertising, to better reflect anticipated overall media spend and to offer a view in the advertising marketplace from different perspectives.?
The recent forecast update shows a small increase in expectations for local political advertising in 2024. BIA now projects $11.7 billion in spending this year, up $560 million from its previous estimate in March. This political spending estimate represents a significant increase of 21.3 percent over the last general election that took place in 2020. Local television continues to get the largest share of the spending. At the same time, the firm projects that Connected TV/Over-the-Top (OTT) will receive much of the additional political ad dollars added to the mix.
For 2025, Ovadia offered a measured perspective: “We’re taking a nuanced view to shape our expectations. If the Fed adjusts interest rates as indicated, post-Q1 2025 or early Q2, and inflation cools and the labor market settles out, we anticipate some economic relief by mid-year. This will boost consumer confidence and, subsequently, increase media ad spend. While we’re optimistic, we’re also being cautious with our projections at this early stage.?
In 2025, BIA?s forecast shows that digital?s share of total local advertising is greater than traditional media?s share for the first time. Digital ad revenue will get 52 percent of the overall advertising spend at $89 billion compared to traditional advertising revenue that is slated at 48 percent of the ad spend at $82 billion.
https://i0.wp.com/radioinsight.com/wp-content/uploads/2024/08/US-Local-2025-Graphic-2.png?resize=1606%2C930&ssl=1
Growing media in the forecast without political for 2025 include PC/Laptop (+13%)
more (https://radioinsight.com/headlines/277378/bia-issues-2025-advertising-spending-projections/)
https://i0.wp.com/radioinsight.com/wp-content/uploads/2020/06/bia.png?resize=200%2C200&ssl=1
BIA Advisory Services? latest U.S. Local Advertising Forecast (https://www.bia.com/forecasts/local-advertising-forecast/) delivers initial expectations for 2025 and updates spending estimates for 2024. The projected revenues across all local media in the U.S. will reach $171 billion in 2025. This represents an increase of 5.5 percent in non-political spending over our revised 2024 estimate. When including political advertising, the 2025 estimate represents a 1.3% decline from the revised estimate of $173.7 billion for 2024. In this forecast, BIA raised its 2024 local advertising estimate primarily due to an expectation of increased political advertising of $560 million.
?With macroeconomic conditions impacting 2024 local advertising spending, it has been slower than anticipated, and we’ve adjusted this year?s forecast,? said Nicole Ovadia, VP of Forecasting & Analysis, BIA Advisory Services. ?We’ve refined our projections for local advertising, both with and without political advertising, to better reflect anticipated overall media spend and to offer a view in the advertising marketplace from different perspectives.?
The recent forecast update shows a small increase in expectations for local political advertising in 2024. BIA now projects $11.7 billion in spending this year, up $560 million from its previous estimate in March. This political spending estimate represents a significant increase of 21.3 percent over the last general election that took place in 2020. Local television continues to get the largest share of the spending. At the same time, the firm projects that Connected TV/Over-the-Top (OTT) will receive much of the additional political ad dollars added to the mix.
For 2025, Ovadia offered a measured perspective: “We’re taking a nuanced view to shape our expectations. If the Fed adjusts interest rates as indicated, post-Q1 2025 or early Q2, and inflation cools and the labor market settles out, we anticipate some economic relief by mid-year. This will boost consumer confidence and, subsequently, increase media ad spend. While we’re optimistic, we’re also being cautious with our projections at this early stage.?
In 2025, BIA?s forecast shows that digital?s share of total local advertising is greater than traditional media?s share for the first time. Digital ad revenue will get 52 percent of the overall advertising spend at $89 billion compared to traditional advertising revenue that is slated at 48 percent of the ad spend at $82 billion.
https://i0.wp.com/radioinsight.com/wp-content/uploads/2024/08/US-Local-2025-Graphic-2.png?resize=1606%2C930&ssl=1
Growing media in the forecast without political for 2025 include PC/Laptop (+13%)
more (https://radioinsight.com/headlines/277378/bia-issues-2025-advertising-spending-projections/)