Borrell Associates recently released an infographic on the local advertising ecosystem, key trends and future industry projections. Take a look below for more info but here were my quick takeaways:
- Digital is bigger than every other channel and has a steep trajectory growth. Set to increase 30% this year while other channels are flat or down.
- Broadcast TV to see a sizable decline of 8% after being flat over the last 5 years. The shift to online video is well documented, but until this year seemed to lift broadcast. Now we are seeing it erode, even as political spending is at all time highs.
- Radio is flat to up. Interesting. Political spending positively boosting these numbers.
- Directories are declining at a lesser rate. Print still has inherent value, especially in secondary and tertiary markets where they have relationships. There will be interesting opportunities to marry directories and couponing with online redemption.
Overall, you see an industry in a well-documented state of flux. The shift to digital will be a boon to those who can adapt and bundle existing channels and best leverage their strategic differentiation, rather than just resell 3rd party products (PPC, ad networks, FB ads, etc.).