Growing Share of Ad Wallet in 2019

Transcription

1 Growing Share of Ad Wallet in 2019 #belocalimpact 2:15 pm - 3:00 pm Mark Fratrik Chief Economist SVP BIA Advisory Services Travis Rothstein CEO/Founder, Connect the Dots Neeraj Kulkarni President, CIEK John Hane President, The Spectrum Company 1

2 Opportunities & Challenges in 2019 and Beyond #belocalimpact HEADWINDS Digital Leakage: GroupM s alert, Google, Facebook, OTT siphon TV $ Political/Olympic: Loss of spending Brands: Cutting back on local media agencies, shifting spend to national platforms, reducing ad spend in traditional media Consumers: Continued shift in viewing patterns Media Agencies: Complicated and lengthy workflow for local TV, headcount reductions, multiple systems needed to plan, buy, activate, evaluate Tariff Impacts: Auto, CPG, Retail Social Platforms: Facebook limits upside for local TV TAILWINDS Attribution: More solutions in the market for local TV to show its efficacy OTT: New subscriber and ad revenue streams Digital: Premium inventory, native ads, transparency and fraud-free Addressability: Smart TV and connected devices provide audience data Metrics: Progress in developing cross-platform video currency metrics Mobile: High growth channel creates new opportunities for local TV Premium Video: Local TV delivers most attractive programming, still owns lion s share of video audience, news leaders

3 #belocalimpact Success in 2019 will require you to: Properly size the local ad market. Identify the split between traditional and online advertising. Build market-by-market forecasts that prioritize against local verticals and revenue opportunities Deliver tactical market assessments to your local sales teams Arm local Sales leaders with data and insights With BIA ADVantage you can be an Informed Marketing Consultant and a Trusted Advisor to your clients

4 #belocalimpact Think Broadly: Local Market May Be Larger than Expected Growth Rate Direct Mail % TV % Radio % Out of Home % Newspapers % Cable % Directories % Magazines % Traditional Media 2, , % Mobile % Online % % News Online % Radio Online % Internet YP % TV Online % Magazines Online % Online Media 1, , % Total Ad Revenue 3, , % BIA Take TV gets just 12% to 18% of local advertising in most markets.

5 Orient Around Ad Spend by Vertical in Your Market #belocalimpact 2019/2018 % of Total Growth Advertising Rate Retail Advertising 739, , % 4.5% Financial/Insurance Advertising 453, , % 6.5% General Services Advertising 445, , % 5.5% Automotive Advertising 442, , % 5.5% Restaurants Advertising 421, , % 7.5% Technology Advertising 387, , % 8.0% BIA Take 6 key verticals account for 70% to 80% in most markets. Leisure/Recreation Advertising 309, , % 7.0% Health Advertising 265, , % 5.0% Media Advertising 114, , % 5.0% Real Estate Advertising 93,317 99, % 7.0% Other Advertising 60,637 50, % -17.4% Education Advertising 47,210 49, % 5.0% Gov't/Pol/Rel'g Advertising 96,737 25, % -73.8% $3,877,661 4,021, %

6 Set Realistic Targets for Online Advertising #belocalimpact Google Facebook Bing Yahoo Yelp Pandora AOL Twitter Reach Local National Online % % News Online Radio Online Internet YP TV Online Magazines Online Other Online Local Online BIA Take 60%-plus of local online advertising goes to outside competitor.

7 Let s Look at New York #belocalimpact Local advertising spending in New York City this year will exceed $11.5 billion in 2018, spread across TV, cable TV, direct mail, radio, mobile and 9 other media Five leading vertical market categories in NYC are Automotive Education Financial/insurance General services Government/political/religious Of the 12 media tracked in the firm s forecast, the primary vertical expenditures in New York for 2018 include: Direct mail $2.9 billion Mobile $1.4 billion TV Over-the-Air $1.4 billion Online $1.32 billion Radio Over-the-Air $769.7 million

8 #belocalimpact Forward Looking Prediction By 2022, BIA estimates the market will grow to $12.98 billion. Online and mobile will continue to increase their shares in the market, while categories like print newspapers and magazines will decrease. 9/28/2018

9 #belocalimpact Let s dive into more data and analysis with our local intelligence platform BIA ADVantage 2018 BIA Advisory BIA/Kelsey. Services. All Rights Reserved. 9

10 #belocalimpact BIA ADVantage INFORM TARGET ADVISE - Track paid media spending to target local audiences. National Economic Overview - Drive strategic thinking as it relates to - Estimate shares by vertical to identify potential revenue. - Compare your media to other inmarket media and identify where ad spend can be expanded. - Identify verticals to increase share of wallet. digital. - Isolate revenue generation activities to stay competitive. - Use forecast and advertiser survey data to prepare sales plans. - Explain advertising opportunities to customers. - Become trusted, expert advisor to your advertising clients BIA/Kelsey. All Rights Reserved.

11 Explaining Local Questions & Comments: Mark R. Fratrik, Ph.D. SVP, Chief Economist BIA/Kelsey BIA/Kelsey. All Rights Reserved BIA Advisory Services, LLC. All Rights Reserved. This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil This or published criminal penalties material under is for federal internal law. client BIA/Kelsey use only. disclaims It may all warranties not be duplicated regarding or the distributed accuracy of in the any information manner herein not permitted and similarly by contract. disclaims any Any liability unauthorized for direct, distribution indirect or consequential could result damages in termination that may of result from the use or interpretation of this information. the client relationship, fines and other civil or criminal penalties under federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.