CHANTILLY, Va. – Local advertising in Los Angeles will top $9.1 billion in 2018, while statewide spending is expected to exceed $18.8 billion across California’s 12 media markets, according to BIA Advisory Services’ local advertising forecast. BIA will present its California market intelligence to advertising and media executives at its LOCAL IMPACT Los Angeles conference at the Hotel Indigo on July 12.
Industry at a tipping point where the ad wallet will be shared almost equally between digital media and traditional media in key verticals, says BIA’s ad market forecast for California.
The LA market represents 48 percent of California’s local ad spending. Key vertical markets of retail, general services and financial/insurance across the state will cumulatively spend nearly $8 billion divided between traditional and digital media, with mobile advertising experiencing the highest growth of any media. BIA’s forecasting shows that financial and insurance industry advertisers will increase its spend by at least 18 percent from 2018 through 2022.
“We’ve been monitoring a major shift in ad spend over the last five years and believe we are at a tipping point where the ad wallet will be shared almost equally between digital media and traditional media in key verticals like retail and financial/insurance in California,” said Mark Fratrik, chief economist and SVP, BIA Advisory Services.
Of the 16 advertising platforms tracked in the BIA’s forecast, the top five choices for expenditures in California for 2018 include:
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Direct mail ($4.81 billion) | |
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TV Over-the-Air ($2.66 billion) | |
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Mobile ($2.38 billion) | |
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Online ($2.21 billion) | |
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Radio Over-the-Air ($1.66 billion) |
Over the next five years, local Financial/Insurance digital and traditional ad spending growth in is projected to grow through:
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Mobile (+$290 million) | |
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Online (+68 million) | |
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Email (+$29 million) |
In the top three California markets — Los Angeles, San Francisco and Sacramento – the spend by the top three verticals varies significantly, according to BIA’s forecast.
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Retail: LA $1.74 billion; San Francisco $869 million; Sacramento $350 million | |
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General Services: LA $1.07 billion; San Francisco $493 million; Sacramento $192 million (General services includes various professional services ranging from legal services to landscaping) | |
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Financial/Insurance: LA $1.00 billion; San Francisco $489 million; Sacramento $199 million |
BIA will present its California market intelligence at its LOCAL IMPACT Los Angeles event on Thursday, July 12 in LA. Nationwide and local market forecasts are available in BIA ADVantage that delivers a direct view of national and local market ad spending.
BIA is the leading authority for data-centered research, analysis, strategic consulting and valuation services for the local media industry. http://www.bia.com.
