Forecast: U.S. local advertising to top $161 billion

In its U.S. Local Advertising Forecast 2020, BIA Advisory Services predicts that total local advertising revenue in the U.S. will reach $161.3 billion in 2020, up from $152.5 billion this year, reflecting a growth rate of 5.8 percent. 

Traditional media revenue will generate 58.5 percent of total local advertising in 2020 at $94.4 billion, growing with the addition of political spend from $93.2 billion in 2019, the forecast says.

Online/digital revenue will reach $66.9 billion in 2020, or 41.5 percent of total local media revenue, up from $59.3 billion in 2019. 

The forecast sees $6.58 billion being spent in local political advertising in 2020.

“The expectation of an aggressive presidential election next year, along with primaries and state-wide races, indicate that political ad spending will be a serious driver of local ad revenue next year,” said Mark Fratrik, chief economist and SVP at Virginia-based BIA Advisory Services. “Combine these factors with the ongoing growth of mobile and social advertising and the emergence and future significant advancement in over-the-top (OTT) advertising, the revenue landscape for next year looks robust.”

The report forecasts that $29.5 billion will be spent on mobile in 2020, growing to $44.6 billion by 2024. Close to 40 percent of mobile spending will be tied to native social, the forecast says.

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