Borrell Associates has released its Annual Digital Benchmark Report, and it shows that local digital advertising revenue is expected to accelerate by more than 13% by 2028.
Local digital advertising hit a milestone in 2024, reaching $100 billion for the first time. It now accounts for 70% of local advertising.
That figure was significantly accelerated by the COVID-19 pandemic. And that doesn’t show any signs of slowing down anytime soon.
“Fully emerged from the effects of the pandemic, it’s clear that digital’s growth jag hasn’t ended,” the report says. “In fact, the trajectory is accelerating, albeit only mildly. It’s the same thing that occurred after the two other economic triggers that preceded it – the Dotcom Bubble Burst of 2000 and the Great Recession of 2008-2009. We foresee that acceleration as slight, growing 3.9% this year to roughly 4.2% annually over the next three years. Still, that growth is enough to continue the trend where digital forms of advertising gain market share at the expense of broadcast, print and cable advertising.”
Local digital advertising revenue is expected to increase by just under 4% in 2025, up to $107 billion. According to projections from Borrell Associates, that figure is expected to steadily increase at just over 4% each year until it hits $120.9 billion in 2028.
“The pandemic had another, more subtle effect. It altered the source of advertising expenditures – the thousands of SMBs in each market,” the report adds. “That reshaping has sparked an uneven growth pattern at the local level and has dislodged the accuracy of sales organizations’ longstanding prospecting methods. It’s a phenomenon which we’ll address further in Chapter 2.
“Finally, the pandemic triggered one more notable phenomenon. It familiarized people even more with streaming-video programs and short-form videos such as those found on TikTok and Instagram Reels. Note the trajectory of the green line – Video/CTV/OTT. Within three years, SEM, Banner Ads, and CTV/OTT will account for 78% of all digital advertising and 57% of all local advertising.”
Borrell Associates is offering its 2025 Annual Digital Benchmarking Analysis for free to those who attend the company’s webinar, scheduled for Thursday, May 29th at 11 AM ET. To register for the free-of-charge webinar, click here.
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