It appears radio broadcasting companies aren’t the only ones who may be increasingly worried about the rapid growth of local digital advertising and, in particular, location-targeted mobile advertising.
New findings from BIA Advisory Services show advertisers will spend $20.8 billion in local television in 2018. That’s $1.1 billion less than what advertisers will spend on location-targeted mobile to target audiences this year.
The data comes from the new BIA report “Local TV and Location: How Targeted Mobile Intelligence Creates High Impact Campaigns,” which examines the growth for each media and how marketers are integrating the channels to unify their ability to effectively reach, target and engage consumers in a multi-platform environment.
BIA Advisory Services Managing Director Rick Ducey sees the data differently. He believes TV and mobile, “two of the most powerful platforms that audiences are using daily in a unified, not fragmented, experience,” are powerful for marketers when used together.
“Today’s marketers increasingly rely on data-infused audience targeting to deliver relevant cross-platform messaging throughout the consumer’s journey to purchase,” said Ducey. “Advertisers who integrate audience targeting on TV with location targeting on mobile can achieve an incredibly powerful one-two marketing punch.”
Local television is the largest segment of local video advertising. According to BIA, local television station revenue is estimated to reach $27.7 billion this year, up from $26.2 billion in 2017.
Additionally, of the local advertising mix – TV, radio, newspapers, digital and OOH – marketers spent 31.8% of their local budget on television, the highest allocation.
In BIA’s survey of small and medium-sized businesses (SMBs), Local Commerce Monitor, 59% give television the highest ROI ratings of any media.
“While local television provides the broadest audience reach among media channels, location intelligence adds value to a television campaign by layering in audience-targeting and the ability to tie outcomes to the campaign,” BIA notes. “As the technology, data and business processes around mobile advertising using location targeting have expanded over the last several years, location targeting provides a performance-based buying model for marketers that ties offline and online media together in an integrated campaign execution.”
Downloading the Report
“Local TV and Location: How Targeted Mobile Intelligence Creates High Impact Campaigns,” examines strategies that integrate television and mobile to create ad campaigns that are smarter, more effective, and more accountable. The free report, courtesy of GroundTruth, a location technology company, is available here.