Digital plays a crucial role in local advertising in the US. According to BIA/Kelsey’s March 2013 forecast of US local ad spending, digital marketing will continue to develop. As more people use and depend on mobile devices, the shift from traditional ads to digital ads will increase. BIA/Kelsey found that traditional spending will decrease from $109.4 billion in 2012 to $107 billion in 2013 and digital spending will increase from $23 billion in 2012 to $25.7 billion in 2013.
Although this shift seems minor, BIA/Kelsey predicts digital ad spending will continue to grow in the coming years. The projected growth in local advertising between 2012 and 2016 is 2.3%, with most of the growth coming from digital media. Digital media is expected to increase throughout the decade and by 2016 more than one in every four local ad dollars will be spent on digital. Even though local advertisers are shifting to digital more slowly than advertisers overall, BIA/Kelsey estimates local ad spending on digital will increase over the decade and therefore close the gap. In 2012 the local market was 19.4% digital and by 2017 the local market is expected to be 27.6% digital (via emarketer).
One digital marketing strategy, mobile coupons, is part of the reason for this increase in spending for digital. More consumers are starting to use mobile coupons because they are readily available and convenient to use. Alex Romanov, founder of iSign Media, projects spending through mobile coupons to grow from $5.4 billion in 2012 to $43 billion by the end of this year. With dramatic increases such as these, it is easy to see why digital marketing spending is increasing and traditional marketing is falling behind (via mobile commerce daily).