We’ve long been advocating for entrepreneurs to start an online business, and now it’s time to take your advertising online, too! On this morning’s WJR Business Beat, Jeff discusses trends and predictions in local ad sales for 2021.
Local businesses are estimated to spend $127 billion on advertising with local media in 2021, and that’s up 7.3% over last year.
Listen to the WJR Business Beat, below, to learn where you should focus your efforts this year if you’re in local ad sales:
“What sectors are spending the money in 2021? Well, look to automotive, restaurant and retail sectors to lead the way and make big gains in spending. So, focus there if you’re in local media sales.”
– Jeff Sloan
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Good morning, Paul.
Media and ad sales have always been a bellwether for how the business climate is fairing, and 2021 is beginning to look up as we begin to move away from the epicenter of the pandemic impact felt in 2020. Of particular relevancy to local businesses, how the local media sector is performing, and we’ve got the scoop today on the Business Beat.
Borrell Associates has recently released its 2021 to 2025 forecast, as well as its look back overview of the 2020 performance numbers.
First let’s look at how 2021 is shaping up for local ad sales. Local businesses are estimated to spend $127 billion on advertising with local media in 2021, and that’s up 7.3% over 2020’s numbers. And while that may not seem like a lot, it’s as much as three times the growth rate year-over-year on average.
Typically, total local ad spending grows at a rate of around 2 to 4% year-over-year.
What sectors lead the way in local ad sales? Not surprisingly, by a long shot, online media is forecast to consume 66% of the total market share in local ad sales in 2021. That’s two-thirds of all local ad sales.
Have we been telling you to take your business online? Well, take your advertising online, as well.
Number two sector in local ad sales, it’s local TV with 7.5% of the total market share. Our beloved radio is not far behind with a market share of 5.4%. But even more good news for radio? In some markets, radio is projected to grow by as much as double-digit percentages.
Sectors declining? Well, unfortunately, print media, other than direct mail, which ranks right behind radio at fourth, print media continues to get hit the hardest as this sector experiences more declines. Newspapers, for example, are expected to see as much as a 10 to 20 percent decline this year over last.
What sectors are spending the money in 2021? Well, look to automotive, restaurant and retail sectors to lead the way and make big gains in spending. So, focus there if you’re in local media sales.
I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.