Native Mobile Advertising
Mobile Advertising Watch is a leading technology media property dedicated to covering the rapidly evolving world of mobile advertising, reviewing new solutions, giving reliable and actionable tips and breaking important technology news.

A new report from research firm BIA/Kelsey forecasts that local advertising in California will reach $18.5 billion in 2017 across 12 markets, with real estate, retail, general services, and automotive at the head of the pack.

The key vertical markets of retail, automotive and general services (which includes professional services from such as legal services to landscaping) will together spend nearly $8 billion divided between traditional media and online/digital, with mobile advertising experiencing the highest growth.

The fastest growing California ad category? That would be real estate, projected to grow by 29 percent through 2021.

A granular look at the state’s top three markets — Los Angeles, San Francisco, and Sacramento — shows that spend varies:

  • Retail: LA $1.58 billion; San Francisco $815.3 million; Sacramento $361.3 million.
  • Automotive: LA $1.03 billion; San Francisco $411.9 million; Sacramento $190.0 million.
  • General Services: LA $994.6 million; San Francisco $474.2 million; Sacramento $204.6 million.

“Our California forecast reveals that advertisers still heavily trend to traditional advertising choices like direct mail and TV, however future growth favors digital advertising options,” said Mark Fratrik, the chief economist and SVP at BIA/Kelsey. “As digital solutions mature, there will be new opportunities for local advertisers to market products even more efficiently and effectively than today.”

Of 12 media tracked in this forecast, the top five choices for vertical expenditures in California for 2017 include: Direct mail ($4.60 billion); TV Over-the-Air ($2.68 billion); Online ($2.30 billion); Mobile ($1.99 billion); and Radio Over-the-Air ($1.58 billion).

Interestingly, over the next five years, local real estate digital and traditional ad spending growth in California will trend toward the digital, with online ($197 million) and mobile ($155.6 million) in the lead over Television Over-the-Air ($43.9 million), Out of Home ($42 million); and Newspaper/Print ($36.2 million).

BIA/Kelsey will present its California market intelligence at its LOCAL IMPACT California event on Wednesday, June 7 in Los Angeles.

Leave a Reply