BIA has released its US Local Advertising Forecast for 2021. A summary of the analysis was reported in TV NewsCheck. According to BIA:
“BIA Advisory Services estimates total local advertising revenue across all media in the U.S. will reach $137.5 billion in 2021. This estimate represents a 2.5% year-over-year growth from the firm’s final post-COVID estimate for 2020 of $134.1 billion, as businesses start to adapt and rebound from the pandemic lows.
As the expected presence of vaccines will help with the continuing rebound in the economy, BIA expects this increase will occur throughout 2021 even without the presence of significant political advertising.
In 2021, traditional media revenue will account for 55.3% of total local advertising at $76.1 billion, a slight decline from 2020 levels. Digital media revenue will grow to $61.5 billion in 2021 to obtain 44.7% of total local media revenue, a share increase of 3.7% from 2020.”
While a rebound is expected, BIA does not believe advertising will reach pre-COVID levels in 2021. That will take another year.
“Although we are estimating an overall increase in total local advertising next year, we do not expect spending to recover to pre-COVID (2019) levels until 2022,” said Mark Fratrik, chief economist-SVP at BIA Advisory Services. “The availability of a vaccine early in the new year will be a key factor to a much stronger year for almost all vertical advertising as the economy rebounds and consumers start moving around more freely and even going back into the office.”
To see a more complete analysis in TV NewsCheck click HERE.
For more details go to the BIA website HERE.
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