Impact of Global Economy Expected to Keep Most Business Categories Down; Without political the increase for the U.S. Local Ad Forecast in 2024 is only 2.2%
CHANTILLY, Va. (Oct 23, 2023) – In its newly released 2024 U.S. Local Advertising Forecast, BIA Advisory Services estimates revenues across all media in the U.S. will reach $175.6 billion next year, primarily due to the political season. The 8.6 percent increase over 2023 is slightly shadowed by concerns of an economic downturn and overall lower ad spending. With the forecasted political revenues removed, BIA’s projection in 2024 is $164.6 billion in total local advertising, only a 2.2 percent increase in local advertising year-over-year.
“As expected, 2024 will be driven by political spending, and, even in markets that are not highly contested there will be a large amount of political advertising,” said Nicole Ovadia, VP Forecasting & Analysis, BIA Advisory Services. “Local political advertising will be fueled by the Presidential and Senate campaigns as well as issue-based advertising. When we look at the forecast without political, we expect only a slight increase in ad spending due to both global and local economic trends that may create more cautious spending.”
The split between traditional and digital advertising shows that digital has a slightly smaller share, 48 percent, of the overall advertising spend at $84.1 billion. Traditional media ad revenue is slated at 52 percent of the ad spend at $91.5 billion.
Commenting on the ad split, Ovadia said, “Digital isn’t growing as fast as it once was. Meta, Alphabet, and others lowered their advertising revenue expectations several times throughout 2023, which in turn has caused us to reflect these reductions in the digital ad spend we track across 96 business categories.”
Key takeaways from the 2024 U.S. Local Advertising forecast include:
- Top five growth channels for 2024:
- CTV/OTT (+39.5 percent)
- TV OTA (+30.0 percent)
- TV Digital (+24.3 percent)
- Cable TV (+19.7 percent)
- Out-of-Home (+9.4 percent)
- Top three fastest growing categories year-over-year:
- Political (+2028.3 percent)
- Special Restaurants, Food & Beverage Stores (+17.2 percent)
- Realtors (+16.7 percent.)
- Key local business verticals declining year-over-year:
- Veterinary Services (-15.8 percent)
- Online Gambling (-15.3 percent)
- Funeral Homes & Services (-14.4 percent)
“When you look at which media will grow from this year to 2024, local political advertising is the main driver, which is terrific for local sellers of these channels,” said Ovadia. “Beyond political, several other verticals will increase next year. One category to keep an eye on is Realtors looking to advertise to drum up demand. Declining verticals include those that experienced growth during the pandemic, like veterinary services, that have now waned. Also worth noting is that many states legalized online gambling this year so we expect this sector to reduce its local ad spending and move towards National/Network advertising going forward.”
Where to Get the 2024 U.S. Local Advertising Forecast
BIA ADVantage clients can log into the platform to view the 2024 U.S. Local Advertising Forecast, which offers a nationwide and local view of paid U.S. local advertising spend for 16 media and 96 sub-verticals. To purchase access to BIA ADVantage, email advantage@bia.com.
The nationwide forecast for 2024 can also be purchased on the company’s shopping cart here.
About BIA Advisory Services
BIA Advisory Services is the leading authority for data-centered insights, analysis, strategic consulting, and valuation services for the local media industry. Since 1983, BIA has been a valuable resource for traditional and digital media companies, brands and agencies, the financial and legal community serving media and telecom, as well as the FCC and other government agencies. Today, we offer comprehensive local market advertising intelligence in our BIA ADVantageTM service to help clients discover the path to their best opportunities. Learn more about our offerings at https://www.bia.com.
Media Contacts:
MacKenzie Lovings
(703) 802-2991
mlovings@bia.com
Robert Udowitz
(703) 621-8060
rudowitz@bia.com
