growing share of ad wallet in 2019 - bia advisory servicesinformed marketing consultant . and a...

© 2018 BIA Advisory Services. All Rights Reserved.

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Growing Share of Ad Wallet in 2019

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


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Opportunities & Challenges in 2019 and Beyond

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

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

HEADWINDS TAILWINDS


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With BIA ADVantage you can be an Informed Marketing Consultant and a Trusted Advisor to your clients

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

Success in 2019 will require you to:


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Think Broadly: Local Market May Be Larger than Expected

Growth2018 2019 Rate

Direct Mail 975.3 982.9 0.8%TV 645.9 633.0 -2.0%Radio 363.5 367.2 1.0%Out of Home 218.1 225.9 3.6%Newspapers 187.5 177.7 -5.2%Cable 185.1 180.3 -2.6%Directories 35.7 28.6 -19.9%Magazines 35.3 33.7 -4.5%Traditional Media 2,646.4 2,629.3 -0.6%

Mobile 481.4 584.9 21.5%Online 448.0 477.8 6.7%Email 86.9 97.4 12.1%News Online 74.4 80.4 8.1%Radio Online 47.7 53.3 11.7%Internet YP 47.4 50.1 5.7%TV Online 28.9 29.6 2.4%Magazines Online 16.5 18.7 13.3%Online Media 1,231.2 1,392.2 13.1%

Total Ad Revenue 3,877.60 4,021.5 3.7%

BIA Take

TV gets just 12% to 18%

of local advertising in most markets.


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Orient Around Ad Spend by Vertical in Your Market

2019/2018

% of Total Growth

2018 2019 Advertising RateRetail Advertising 739,211 772,475 19.2% 4.5%Financial/Insurance Advertising 453,783 483,279 12.0% 6.5%General Services Advertising 445,196 469,682 11.7% 5.5%Automotive Advertising 442,053 466,366 11.6% 5.5%Restaurants Advertising 421,624 453,246 11.3% 7.5%Technology Advertising 387,792 418,815 10.4% 8.0%Leisure/Recreation Advertising 309,749 331,431 8.2% 7.0%Health Advertising 265,458 278,731 6.9% 5.0%Media Advertising 114,894 120,639 3.0% 5.0%Real Estate Advertising 93,317 99,849 2.5% 7.0%Other Advertising 60,637 50,100 1.2% -17.4%Education Advertising 47,210 49,571 1.2% 5.0%Gov't/Pol/Rel'g Advertising 96,737 25,300 0.6% -73.8%

$3,877,661 4,021,503 100.0%

BIA Take

6 key verticals account for

70% to 80% in most markets.


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Set Realistic Targets for Online Advertising

2018 2019Google 524.5 605.0 Facebook 118.3 140.8 Bing 24.6 26.8 Yahoo 23.9 25.3 Yelp 20.4 25.2 Pandora 12.6 14.7 AOL 10.7 10.8 Twitter 9.3 11.1 Reach Local 4.8 5.3 National Online 749.1 60.6% 865.0 62.0%

Email 86.9 97.4 News Online 74.4 80.4 Radio Online 35.1 38.6 Internet YP 47.4 50.1 TV Online 28.9 29.6 Magazines Online 16.5 18.7 Other Online 196.9 216.4 Local Online 486.1 531.2

BIA Take

60%-plus of local online advertising

goes to outside competitor.


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Let’s Look at New York • 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


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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


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National Economic Overview

10 © 2016 BIA/Kelsey. All Rights Reserved.

INFORM

- Track paid media spending to target local audiences.

- Estimate shares by vertical to identify potential revenue.

- Compare your media to other in-market media and identify where ad spend can be expanded.

TARGET

- Identify verticals to increase share of wallet.

- Drive strategic thinking as it relates to digital.

- Isolate revenue generation activities to stay competitive.

ADVISE

- Use forecast and advertiser survey data to prepare sales plans.

- Explain advertising opportunities to customers.

- Become trusted, expert advisor to your advertising clients.

BIA ADVantage

Questions & Comments:

Explaining Local

© 2016 BIA/Kelsey. 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 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.

© 2018 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 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.

Mark R. Fratrik, Ph.D. SVP, Chief Economist

BIA/Kelsey 703-802-2982

[email protected]

mailto:[email protected]

growing share of ad wallet in 2019 - bia advisory servicesinformed marketing consultant . and a...

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