Study: Local advertisers to keep budgets steady, but shift more spend to social, mobile

Brief:

Local advertisers said they will boost their spending on mobile and social media platforms this year, according to a survey that consulting firm BIA Advisory Services shared with Mobile Marketer. Only 13% of businesses said they weren't currently using mobile advertising but intended to do so in 2019, the survey found.
Location-targeted ads will make up the biggest part of mobile ad growth. More than a third (35.5%) of businesses are using mobile location-aware ads and almost 24% are using mobile search, per the survey.
While mobile and social ad spending will grow, most local advertisers nationwide will maintain relatively stable total ad spend and media allocations in 2019. Entertainment industry advertisers — amusement parks, sports teams, motion picture theaters and other entertainment venues — plan to boost spending, while retailers, professional service providers and home service businesses will keep ad budgets the same.

Insight:

BIA's survey indicates that, while local advertisers plan to maintain their ad budgets in-line with last year's levels, they will shift spending to mobile and social media outlets to reach consumers whose media consumption has increasingly become centered around smartphones, tablets and other devices. Location-targeted ads that only mobile devices can provide will become more prominent as businesses try to reach consumers when they're on the go and available to stop into nearby stores, gas stations and restaurants.

Traditional media channels like TV, radio and print that have a mobile presence also have an opportunity to sell targeted ads, Celine Matthiessen, BIA's vice president of analysis and insights, said in an statement.

"Buyers of traditional media are extremely comfortable purchasing a myriad of digital ads from their local salesperson so sellers should be prepared to sell offers across multiple platforms," she said.

The growth in location-based ads among local advertisers comes as nationwide advertisers like Burger King, Toyota and MillerCoors are more often leveraging similar tactics to drive foot traffic into restaurants, dealer lots and stores. Location-based ad personalization has given 91% of U.S. location data buyers a better understanding of their audiences, according to a Factual survey cited by eMarketer. About two-thirds (62%) of data buyers said they experienced more accurate targeting, while 35% saw an increase in store visits, the survey found.

However, location-based ads also have led to criticism from privacy advocates. AT&T and T-Mobile last month said they will stop providing the real-time locations of individual U.S. consumers to data resellers after a report indicated sensitive personal information is easy to get without informed consent. Sen. Ron Wyden renewed his call for the Senate to adopt his proposed legislation to ban carriers from selling mobile subscribers' location data.