Source BIA Kelsey
2017 could be a “transformative” year for tech and media industries. That’s according to a new report from BIA/Kelsey, which expects 2017 to be the year of new marketing trends within mobile, digital, programmatic and many other areas. The What’s Next: BIA/Kelsey 2017 Analyst Predictions report covers trends and predictions within these developments annually.
When it comes to ad spending, the research expects national brands to outpace regional and local businesses in targeting local audiences.
Rick Ducey, Managing Director, BIA/Kelsey explains that brand marketers will be increasing their ad expenditure by $17.1bn from 2015 to 2020.
“Regional advertisers’ spending will be relatively flat, and local SMBs will increase their spend by $10.6 bn.”
In addition, voice search is set to reach 25% in mobile search volume, predominantly through personal assistance apps like Google Assistant, Apple Siri or Microsoft Cortana.
Michael Boland, Chief Analyst and VP of Content, believes that Google will be the clear winner among these apps.
“These wars will be won with data, which Google possesses from its search index and knowledge graph. Amazon’s Alexa will shine for product and commerce applications, while Microsoft and Apple will seek to excel with vertically specific content niches where they can establish best of breed content with data partners (i.e., using weather data).”
However, cable and satellite businesses may suffer by offering weakly bundled services, (referred to as “skinny bundles”) and more consumers opting out. This in turn could benefit more local TV broadcasters, as customers will have fewer cable channels to view and instead turn to local programming.
Though not mentioned in the report, this shift away from cable services is likely being led by smart devices including smartphones and tablets and the streaming revolution with companies such as Netflix at the forefront. Fewer consumers require a cable TV service as they are turning to their phones to watch the latest programme whenever it suits them.
Celine Matthiessen, Vice President, Analysis & Insights, believes that print will evolve this year and maintain a dominant share of SMB expenditure through an extension into digital.
“Print is evolving and still holds a large share of small businesses’ ad dollars. This will continue as smart companies extend print campaigns through native and digital targeted media. In our forecast for 2017, $53bn will be spent on local print. Newspapers, magazines and Yellow Pages are offsetting declines in print revenue with digital. These traditional digital efforts are projected to grow 4% annually from 2017 to 2021. Newspapers and Yellow Pages companies continue to extend their advertisers’ reach through large networks via programmatic ad buying beyond their owned and operated properties, which levels the playing field and helps them to retain advertisers that are shifting their share to digital.”