August 13, 2022

Digital Marketing Education

Latest news and events

2022 local ad spending outlook improves

The total year-over-year increase in expected local ad revenue is $35.8 billion—a 26% lift.

“2021 has been a year of fluctuations. The first two quarters of the year saw strong growth, with some stalling in Q3 once the Delta variant appeared late summer. We’ve taken pandemic concerns plus inflation and supply chain issues into account to prepare our local media estimates and, overall, we are bullish on ad revenue for 2022,” said Mark Fratrik, senior vice president and chief economist for BIA Advisory Services.

For the ad industry, much is still uncertain for next year regarding these recent disruptions. Hopes for nearing post-pandemic growth may now have to sit on ice as the omicron variant spreads rapidly throughout the country, dashing business for verticals like retail, which is forecasted to fall from its longstanding position as top spender in local advertising. Still, surging popularity in nascent digital channels like the metaverse could open new avenues for spending.

Other takeaways from the BIA forecast indicate digital’s role in the increasing levels of local media consumption. Mobile represents the highest paid media channel for 2022, expecting to accrue $35.7 billion in revenue, followed by direct mail ($33.4 billion) and PC/laptop ($32.1 billion). Over-the-top (OTT) is expected to grow 57.4% in 2022—a rate that is higher than that of mobile.

Political advertising is also expected to drive ad revenue next year, in-part due to efforts surrounding the congressional midterm elections in November. To this end, spending on local television is forecast to grow 28.4%.