2018 Local Advertising Forecast
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1 Welcome! #LOAC2018
2 2018 Local Advertising Forecast Total local ad growth But the tide isn t rising for all media.
3 2018 Local Advertising Forecast Non-Digital Digital $126.8 billion
4 The Lines Crossed Last Year U.S. LOCAL ADVERTISING Expect flattening to begin in $ Billions Source: Borrell Associates
5 Will the Digital Tide Stop Rising? U.S. LOCAL DIGITAL ADVERTISING EXPENDITURE GROWTH RATE ---- Forecast Source: Borrell Associates
6 What s Changing in 2018 Change in U.S. Local Ad Expenditures, 2018 vs Out of Home is the only traditional type of advertising that s shown consistent growth Source: Borrell Associates
7 Local Marketing Expenditures Continue to Mushroom U.S. Local Marketing Expenditures--$ Billions Forecast
8 Advertising Isn t Driving That Growth $ Billions 2.5x 2.0x
9
10 Where The Money Is Going Annual Expenditures *Average annual expense for local businesses surveyed from April-July 2017 Source: Borrell s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)
11 Where The Money Is Going Annual Expenditures *Average annual expense for local businesses surveyed from April-July 2017 Source: Borrell s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)
12 Where The Money Is Going Realty agents spend half as much on advertising as the typical advertiser but nearly 2x the average on managing social media. Annual Expenditures Even businesses with 10 or fewer employees spend big money on managing social media. *Average annual expense for local businesses surveyed from April-July 2017 Source: Borrell s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)
13 Old Media vs. New Media So which is better? Source: Borrell s annual survey of Local Advertisers, April-August 2017; N = 3,508 responses
14 Effectiveness on Scale of 1 to 5 Which Channels Are Most Effective? Source: Borrell s 2017 Local Advertiser Survey; N= 3,511 responses Social media adv Broadcast TV Search engine marketing marketing Cable TV Behavioral targeting Event marketing Geo targeting Native ad formats Postal mail Video ads Outdoor Radio Impression, ROS ads Audio ads, podcasts Deal promos /coupons Cross-site ad networks SMS or text-based ads Content In-app advertising Newspaper In-game advertising Display ads Cinema Online classified ads Magazine Online directory listings Other printed publication Printed directories Response/ QR codes Traditional Digital Scores of 3.0 and above are considered moderately effective or better. Q. Of the types of media your business used in 2016, how effective were each at reaching your marketing/advertising goals? Scale: Don t know 1- Not at all effective 2 - Slightly effective 3 - Moderately effective 4 - Very effective 5 - Extremely effective 14
15 Digital Is Often a Combo Buy Source: Borrell s 2017 SMB Survey; N = 3,420 advertisers 15
16 Traditional Media s Gut Advantage How 2,293 local advertisers decide what to buy Source: Borrell s Annual Survey of Local Advertisers; April-June 2017; N = 2,293 responses
17 The Deer Have the Guns Rating the marketing experience of 3,039 local advertisers 70% Are Loners Of those with the least marketing expertise, 70% make marketing decisions without anyone s help. Sources: Borrell s Annual Survey of Local Advertisers; April-July 2017; N = 3,039 responses; & Borrell s monthly advertiser panel, 208 responses 2018 Borrell Inc.
18 It s a Confusing, Crowded Space Who Handles Digital Services For Local Businesses? Notables wife Sonin-law Internal/Self 3% GoDaddy 5% CDK Global 2% Google, 2% Wix, 1% Relative hibu, 1% Source: Borrell s Annual Survey of Local Advertisers; April-June 2017; N = 1,460 responses
19 Digital is a Huge Time Suck Internal Hours/Week Spent on Marketing The average local business manager spends the equivalent of nearly 1½ days a week on marketing activities. A business with 10 or fewer employees spends nearly one full day on marketing activities. Imagine that! *Average annual expense for local businesses surveyed from April-July 2017 Source: Borrell s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)
20 Local Ad Agencies I.D. Competitors Who is your biggest competitor? Source: Borrell s Annual Survey of Local Advertisers; April-June 2017; N = 583 responses from local ad agencies
21 Digital Dominators Emerge Share of In-Market Addressable Digital Ad Dollars Top 5% Get 30% or More of Addressable Dollars Source: Borrell s database of digital revenue for 2,789 local media entities. 1 Digital Marketing Region (DMR) Rank
22 One Of Those Stars... Jim Moroney Mike Orren Alison Draper Greg Colunga Jared Merves
23 Randall Rothenberg IAB Changes Josh Mabry Facebook Gian Fulgoni comscore
24 Smart Speakers Fred Jacobs Jacobs Media Steve Goldstein Amplifi
25 Is Local Media Moving Fast Enough? Nancy Lane Local Media Association Peter Newton GateHouse Media Bob Brown Swift Communications Caroline Beasley Beasley Media
26 Entercom Is A Leading... American Entertainment & Media Company Tim Murphy Entercom
27 First-Class Stories Ray Carulli, Vivial Don Morris, Take5 Media Group Donny Dye, Simpli.fi Joe DiGiovanni, The Weather Co. Dan Lansman, SiteImpact Mark Gorman, Matrix Kyoo Kim, Netsertive Shawn Pokorny, Clipcentric Jordan Bentley, Admatic Afif Khoury, MeetSoci Matt Sunshine Kevin Gianatiempo, Zypmedia Stan Justice, Data-Dynamix
28 Today s Keynoter Rishad Tobaccowala
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