Local advertising reached more than $150 billion last year, according to Borrell Associates’ recent annual report, with digital display and social media advertising further separating itself from the long-reigning Search as “the largest single slice of the local advertising pie.”
Borrell Associates (Photo Source: MediaPost)
“Things are changing within the digital sector,” the report’s executive summary says. “By 2028, Search will get bumped down another notch when spending on streaming video/OTT is expected to surpass it.”
YoY digital ad growth declined after “two decades of strong expansion,” with the annual rate expected to fall short of 3% in 2029.
“The industry is no longer competing against digital disruption,” the report summary says. “It is competing within a mature digital economy where winners are defined by precision, discipline, and the ability to systematically take share.”
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FAST FAQ
With social media surpassing search in local advertising, should I shift my budget now?
This report shows the largest share of local ad dollars is now flowing to social and digital display platforms rather than search engines. For publishers and marketers, this is, if nothing else, a signal to audit your channel mix. If search still dominates your local ad budget, you may be over-invested in a maturing channel. Begin testing incremental budget shifts toward social and streaming video now before OTT pushes search even further down the rankings.
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