Report: US Ad Market In Rude Health & Set To Hit $226 Billion By 2021

A new report into the state of the US ad market has predicted it will deliver solid and consistent growth over the next five years, rising to $US174 billion (or $A226.6 billion) annually by 2021.
The report by BIA/Kelsey and titled 2017 Local Advertising Forecast said the US market will be driven by double-digit growth in mobile and social advertising.
It also predicted strong growth in online ads and mobile video which, the report noted, could experience rises of as much as 17 per cent.
However, BIA/Kelsey noted that the rises weren’t unanimous with traditional advertising revenues (TV, print, radio etc) likely to fall 0.6 per cent in the coming five years.
Interestingly, the report found that the biggest form of advertising in the US in 2017 was still direct mail which represented a quarter of all US ad spends ($US37 billion).
TV was presently second, raking in 14 per cent of all ad dollars, followed by digital (11 per cent), newspapers (11 per cent) and mobile (11 per cent).
Speaking on the report’s findings, BIA/Kelsey’s chief economist, Mark Fratrik, said: “We are on the precipice of different advertising channels taking lead positions in the local advertising marketplace.
“Although national and local businesses still utilise a mix of digital and traditional advertising platforms, the opportunities afforded by mobile, social and video advertising are incredibly valuable due to their measurability, adoption by consumers and enhancements by technologies such as beacons and data attribution that blend extraordinarily well with today’s mobile consumer,” he said.
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