For national brands to market their products and services to local consumers, there are tools today that connect the two and drive engagement. According to BIA Advisory Services estimates, by 2022, national brands will spend $74.8 billion in paid media to reach local audiences—which was the focus of a webinar, “Brands Going Local,” presented last week by the research firm.
Thanks to a host of new tools available to marketers, national brands are able to better target the local level via technology, platforms, data and automation. Their investments, looking forward, will be devoted to a variety of channels such as direct buying and funding, via co-op and market development fund programs.
“The rise of local marketing automation, aka, ‘through channel marketing automation,’ has reshaped the ecosystem for brands, agencies, local affiliates, and both digital and traditional media,” said Rick Ducey, managing director, BIA Advisory Services, who moderated the webinar.
BIA uses the label “Local as a Service” to designate national marketers and local media channels utilizing “LaaS” platform solutions. Already, these platforms enable data-driven, automated targeting and activation of local media channels.
According to its research, national brands will spend $15.2 billion more on local media between 2017 and 2022—rising from $59.6 billion to $74.6 billion. Panelist Frost Prioleau, co-founder and CEO, Simpli.fi—a programmatic platform that brings programmatic to localized advertising—offered, “Addressable programmatic is the ‘new local.’” He explained that local has become much more specific in short order. At one time, marketers were able to target by DMA—and then zip code, then geofencing. Today, he said, targeting is as specific as a consumer’s home address.
As an example of how local targeting has evolved, Prioleau explained how a car dealer might have targeted a specific upscale neighborhood for consumer prospects. “Now, with addressable targeting, the dealer is able to see households that have a luxury car coming out of a lease in the next three months.” He added that such targeting is effective for countless brands, including “a household that might have the propensity to buy insurance or healthcare. That data is now available to deliver better performance to local advertisers.”
Those tuning in to the BIA webinar were polled at the close, and asked if they believe that LaaS adoption by national brands will lead to more local media spend. Some 80% of participants said yes, 0% said no, and 20% were holding out with a response of “unsure.”