Mirroring trends in the national market, advertisers in New York State are shifting more money to digital media. In 2017, among the top 10 NYS markets, online and mobile will rank as the No. 2 and No. 4 ad categories, respectively, according to a new survey by BIA/Kelsey, with online accounting for $1.78 billion in ad spend and mobile representing $1.54 billion.
Only direct mail ($3.57 billion) and broadcast TV ($1.73 billion) account for more ad spending. Terrestrial radio ranked No. 5 with $992 million in ad billings.
Over the next five years, BIA/Kelsey says mobile will move up two spots and rank as the No. 2 overall media in New York State.
“Our New York State forecast reveals a similar trend to what we are seeing across the country. Most of the companies in the top verticals still pour dollars into traditional advertising choices like direct mail and TV,” Mark Fratrik, chief economist and senior VP, BIA/Kelsey, said in the report. “However, when we look at the growth media in New York, a few striking shifts will occur over the next five years. For example, mobile and online radio advertising are dramatically increasing in share and revenue generation.”
Among ad categories, five verticals represent about 60% of all ad spend in the state, the report noted, and those top categories include retail, general service, financial/insurance, auto and restaurants. By 2021, BIA/Kelsey expects financial and insurance companies to increase ad spend by 22%, pouring money into digital media. Over the next five years, the firm projects that financial/insurance services brands will increase mobile spending by $256.4 million, add $60.3 million to digital advertising, pump $13.1 million in radio online and add $8.5 million to email advertising. These investments are reflective of how many brands and categories are shifting their ad spending, Fratrik noted.
“The fluctuating media landscape offers new opportunities for emerging digital solutions to capture more revenue dollars, and for other traditional media to both maintain their positions and strengthen their value to advertisers with offerings such as programmatic,” he said.