#LOAC2018
Welcome!
Total local ad growth
But the tide isn’t rising for all media….
2018 Local Advertising Forecast
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
DigitalNon-Digital
2018 Local Advertising Forecast
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
$126.8 billion
The Lines Crossed Last YearU.S. LOCAL ADVERTISING
Source: Borrell Associates © 2018 Borrell Inc. ALL RIGHTS RESERVED.
$ Billions
Expect flattening to begin in 2019.
Will the Digital Tide Stop Rising?U.S. LOCAL DIGITAL ADVERTISING EXPENDITURE GROWTH RATE
Source: Borrell Associates © 2018 Borrell Inc. ALL RIGHTS RESERVED.
---- Forecast
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
What’s Changing in 2018
Source: Borrell Associates
Change in U.S. Local Ad Expenditures, 2018 vs. 2017
Out of Home is the only traditional type of advertising that’s shownconsistent growth
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Local ‘Marketing’ ExpendituresContinue to Mushroom
U.S. Local Marketing Expenditures--$ Billions
Forecast
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
2.5x
Advertising Isn’t Driving That Growth
2.0x
$ Billions
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Where The Money Is Going
*Average annual expense for local businesses surveyed from April-July 2017Source: Borrell’s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)
Annual Expenditures
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
*Average annual expense for local businesses surveyed from April-July 2017Source: Borrell’s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)
Annual Expenditures
Where The Money Is Going
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
*Average annual expense for local businesses surveyed from April-July 2017Source: Borrell’s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)
Realty agents spend half as much on
advertising as the typical advertiser but nearly 2x the average
on managing social media.
Even businesses with 10 or fewer employees spend
big money on managing social
media.
Annual Expenditures
Where The Money Is Going
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Source: Borrell’s annual survey of Local Advertisers, April-August 2017; N = 3,508 responses
Old Media vs. New Media…So which is better?
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
14Source: Borrell’s 2017 Local Advertiser Survey; N= 3,511 responses
2.06
2.22
2.47
2.49
2.52
2.53
2.59
2.64
2.67
2.71
2.72
2.76
2.76
2.79
2.80
2.80
2.85
2.94
2.98
3.05
3.06
3.06
3.07
3.07
3.13
3.16
3.31
3.33
3.37
3.42
Response/ QR codes
Printed directories
Other printed publication
Online directory listings
Magazine
Online classified ads
Cinema
Display ads
In-game advertising
Newspaper
In-app advertising
Content
SMS or text-based ads
Cross-site ad networks
Deal promos /coupons
Audio ads, podcasts
Impression, ROS ads
Radio
Outdoor
Video ads
Postal mail
Native ad formats
Geo targeting
Event marketing
Behavioral targeting
Cable TV
Email marketing
Search engine marketing
Broadcast TV
Social media adv
Effectiveness on Scale of 1 to 5
Traditional
Digital
Scores of 3.0 and above are considered moderately effective or better.
Q. Of the types of media your business used in 2016, how effective were each at reaching your marketing/advertising goals?
Scale: Don’t know1- Not at all effective2 - Slightly effective3 - Moderately effective4 - Very effective5 - Extremely effective
Which Channels Are Most
Effective?
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
15
Digital Is Often a Combo Buy
Source: Borrell’s 2017 SMB Survey; N = 3,420 advertisers
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Traditional Media’s ‘Gut’
AdvantageHow 2,293 local advertisers
decide what to buy
Source: Borrell’s Annual Survey of Local Advertisers; April-June 2017; N = 2,293
responses
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
The Deer Have the Guns
Sources: Borrell’s Annual Survey of Local Advertisers; April-July 2017; N = 3,039 responses; & Borrell’s monthly advertiser panel, 208 responses
© 2018 Borrell Inc.
Rating the marketing experience of 3,039 local advertisers
70% Are LonersOf those with the least marketing expertise, 70% make marketing decisions without anyone’s help.
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
It’s a Confusing, Crowded SpaceWho Handles Digital Services For Local Businesses?
Source: Borrell’s Annual Survey of Local Advertisers; April-June 2017; N = 1,460 responses
Internal/Self3%
GoDaddy5%
CDK Global2%
Google, 2%
Wix, 1%
hibu, 1%
wife
Son-in-law
Relative
Notables
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Digital is a Huge Time SuckInternal Hours/Week Spent on Marketing
*Average annual expense for local businesses surveyed from April-July 2017Source: Borrell’s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)
The average local business manager
spends the equivalent of nearly 1½ days a week on
marketing activities.
A business with 10 or fewer employees spends nearly one
full day on marketing activities.
Imagine that!
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Local Ad Agencies I.D. Competitors
Source: Borrell’s Annual Survey of Local Advertisers; April-June 2017; N = 583 responses from local ad agencies
Who is your biggest competitor?
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Digital Dominators Emerge
Source: Borrell’s database of digital revenue for 2,789 local media entities.
Share ofIn-Market
AddressableDigital Ad Dollars
1Digital Marketing Region (DMR) Rank
Top 5%Get 30% or
More of Addressable
Dollars
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
One Of Those
Stars . . .
Jim Moroney
Jared Merves
Alison DraperMike Orren
Greg Colunga
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Randall RothenbergIAB
Josh MabryFacebook
Gian FulgonicomScore
Changes…
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Smart
Speakers
Steve GoldsteinAmplifi
Fred JacobsJacobs Media
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Peter NewtonGateHouse Media
Bob BrownSwift Communications
Caroline BeasleyBeasley Media
Is Local Media
Moving Fast Enough?
Nancy LaneLocal Media Association
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Entercom Is
A Leading . . .
Tim MurphyEntercom
American Entertainment
& Media Company
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Matt Sunshine
➢ Ray Carulli, Vivial
➢ Don Morris, Take5 Media Group
➢ Donny Dye, Simpli.fi
➢ Joe DiGiovanni, The Weather Co.
➢ Dan Lansman, SiteImpact
➢Mark Gorman, Matrix
➢ Kyoo Kim, Netsertive
➢ Shawn Pokorny, Clipcentric
➢ Jordan Bentley, Admatic
➢Afif Khoury, MeetSoci
➢ Kevin Gianatiempo, Zypmedia
➢ Stan Justice, Data-Dynamix
First-Class Stories
© 2018 Borrell Inc. ALL RIGHTS RESERVED.
Today’s
Keynoter
Rishad Tobaccowala