According to a study by Borrell Associates, which was reported on by PaidContent, online ad spending is likely to rise 18% next year rising to $16.1 billion dollars. Ad spending overall is expected to hit $51.9 billion which equals a 14% growth.
This is a nice leap over this year’s spending which is likely to rise less than 2% from last year. Borrell says this upswing is coming mostly from the rise in targeted advertising to local audiences and “everything involving social media.”
None of this is surprising given that “local” is the magic word of late. Everyday the marketing news is filled with stories about new mobile apps, websites and social media sites that are helping business target the customers in their neighborhood.
Technology is making it much easier for the mom and pop bicycle business to compete with Toys R Us and thanks to mobile and social media marketing, dad doesn’t have to dress up as a bumble bee in order to make sales.
Sadly, I do miss the days of Crazy Eddie screaming at me about how his prices are INSANE and my week is never complete until I’ve heard that mattress guy sigh, “You’re killing me, Larry!” But the truth is, as much as I enjoy those local commercials, I’ve never been compelled to by their product. On the other hand, an email for a free entree at the restaurant up the street will have me there by the end of the week.
As an interesting side note, Borrell lists Monroe, LA – El Dorado, AR, Albany – Schenectady, NY, and Des Moines – Ames, IA, as the fastest growing areas for local advertising.
Among the slowest? Fairbanks, AK. Imagine that.