It’s hardly a surprise that the 2024 U.S. presidential election will likely bring more political ad dollars to broadcast media than in any prior political season. Just how impactful to local advertising dollars is the election-oriented activity?
Ex-political, the growth rate between 2023 and 2024 decreases by 6.4%, newly released data from BIA Advisory Services show.
The projection from BIA, ex-political, for total local advertising in 2024 is $164.6 billion, reflecting a 2.2% increase in local advertising year-over-year.
But, factor in the political advertising, and 2024 revenue across all media in the U.S. is forecast to reach $175.6 billion next year, an 8.6% increase over 2023.
BIA suggests that high single-digit growth could have been bigger, as it is ” slightly shadowed by concerns of an economic downturn and overall lower ad spending.”
TRADITIONAL MEDIA’s WAFER-THIN ADVANTAGE
As seen below, 52% of all local advertising dollars are associated with “traditional media,” including spot cable, spot television, spot radio, and out-of-home advertising, in addition to print. Together, some $91.5 billion of the $175.6 billion in total 2024 U.S. ad dollars will go to what some also refer to as linear media.
Commenting on the digital versus traditional media split, BIA Advisory Services VP of Forecasting and Analysis Nicole Ovadia said, “Digital isn’t growing as fast as it once was. Meta, Alphabet, and others lowered their advertising revenue expectations several times throughout 2023, which in turn has caused us to reflect these reductions in the digital ad spend we track across 96 business categories.”
She added that Senate races and issues-based advertising are also fueling political ad dollars in 2024.
Ovadia is one of four panelists appearing at Forecast 2024 on November 15 in New York, and will be sharing her perspectives on the strong pockets of opportunity for broadcast advertising, and potential challenges to growing its share.
Ovadia’s appearance is scheduled for an opening Forecast 2024 session at 8:30am, featuring Miller Kaplan Partner Andrew Rosen as the moderator. Other panelists include Bottom Line Marketing CEO Jackie Brooks, MAGNA EVP/Managing Partner of Global Market Intelligence Vincent LeTang and Silver Oak Political President Steve Passwaiter.
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