Local advertising is becoming cross screen with 3 out of 4 buyers utilizing traditional and digital together.
Platforms utilized by local advertisers:
1) Traditional + Digital — 74%
2) Traditional only — 22%
3) Digital only — 3%
4) Other — 1%
The challenge: 72% of local advertisers describe themselves as novice/apprentice. 70% are making marketing decisions without anyone’s help.
More digital: A recent study estimates that local broadcast stations are getting ≈ 5% of their revenue from digital.
Quote from Shereta Williams — President @ Videa:
“At a macro level, local TV advertising needs to be able to compete with digital… TV is a much better value for advertisers, local broadcast in particular because there’s such a strong connection to the viewer, but if it’s too difficult to buy TV, then it becomes easy for advertisers and agencies to default to digital.”
Top platforms for $174b local spend (% of total):
1) Direct Mail: $37.1b (25%)
2) Local TV: $20.9b (14%)
3) Online / Interactive: $18.6b (11%)
4) Newspapers: $16b (11%)
5) Mobile: $16b (11%)
6) Local Radio: $15.6b (10%)