Google and YouTube are predicted to increase their local advertising sales by a whopping 42% by 2022 – from $19 billion in 2018 to $27 billion by 2022. That’s according to research from BIA Advisory Service obtained by Mobile Marketer.
As consumers are transitioning to mobile in terms of their media consumption, brands and large retailers are likely to shift their budgets to providers such as Google and Facebook in order to reach them. Indeed, mobile media channels are likely to grow the fastest for local ads.
The research also indicates that local Google ads were already higher than ads from all 11,044 US radio station combined. They also easily outscore the ads produced for US television.
It is forecast that by 2022, local Google ads will be twice the ads produced by US radio stations.
The success of Facebook and Google is largely driven by smaller advertisers and brands, which are able to purchase cheaper placements on mobile and social media.
BIA also estimates that Google will attract a local digital ad share of 40% in 2018. Indeed, Facebook and Google combined are now earning around 48% of all local digital ad revenue.