Local advertising on mobile devices is estimated to show continued strong growth for the next five years, overtaking local TV as the second-biggest local media platform.
This year, revenues will rise 30% to $22 billion from $17 billion last year, according to BIA/Kelsey, a local advertising researcher. Of the $22 billion, $3 billion will come from traditional media companies: radio, television and newspapers.
Over the next five years, local mobile advertising is expected to rise by a 17.8% and compound annual growth to $38.7 billion.
In 2018, direct mail retained its top position in local advertising — with a 25.4% share ($38.5 billion); local TV is next at 13.8% ($20.8 billion).
Pure-play mobile providers will see $19 billion in 2018, representing 12.6% share. This is on a pace to reach 19.2% by 2022, overtaking local TV.
Overall, for this year, BIA/Kelsey says local advertising is set to rise 5.2% to $151.2 billion — from $143.8 billion in 2017. Traditional media will comprise 64.7% of the revenue, with online/digital securing 35.3%.
BIA/Kelsey estimates come from analyzing the top 12 local media platforms.