With Digital Booming, Local Advertisers Want More Mobile, Social Ads

March 19, 2019 - 3 minutes read

Local businesses want to up their digital advertising investment, and radio stations are in a prime position to capture that business. After all, local radio sellers already has established relationships with businesses in the community, and we have expertise in both traditional and digital media advertising.

This year, local business owners say they’ll increase spending on mobile and social media, according to a BIA Advisory Services’ new 2019  U.S. SAM Survey of Advertising and Marketing report.

Entertainment-related advertisers, including amusement parks, sports teams, motion picture theaters and other entertainment venues, said they planned to increase their total local ad spending this year, while other key categories, such as financial services, technology, retail, professional service providers and home/trade service advertisers, plan to maintain last year’s spending levels.

Across the board, local advertisers want to increase their digital advertising. This is good news for radio stations, who have invested in digital platforms and developing cross-platform sales initiatives.

The most popular digital advertising purchased through traditional channels include social and mobile media, email, video, display and SEO, BIA noted. Local businesses are particularly interested in mobile advertising. Currently, only about a third of local advertisers said they were using mobile location-based advertising, while just a quarter are used mobile search. That means there are plenty of clients on the sidelines who may want to explore mobile, but have yet to commit any ad dollars.

Radio companies’ digital ad efforts are already paying off. Last year, local radio’s digital revenue jumped 15% to about $800 million and that’s expected to hit $949 million this year, according to a report from the RAB and Borrell Associates. Even better, 85% of radio advertisers are also buying some form of digital advertising, and three-quarters of those clients are buying both digital and on-air ads. Digital is becoming a critical piece of station revenue, accounting for 7.5% of the average station’s ad billings last year, up from 6.3% in 2017.

At Federated Digital Solutions, we offer clients the latest in digital solutions, including the social and mobile options that local businesses want to explore.  And, in good news for radio, the BIA study noted that small and medium-sized businesses said they’re comfortable buying digital from traditional media partners, putting radio in a strong position to make these multiplatform deals.

With local advertisers saying they want more personalized, targeted advertising, radio’s mobile and social solutions can deliver that experience. Combine that with the power and reach of on-air radio advertising and we can help local businesses exceed their goals.