A new report from Nielsen shows that the online advertising market is growing, with an estimated 2.1 billion unique visitors each month and an average monthly spend of $1,600.
But the report also shows that local advertising is growing faster than online, with local advertising spending up to 3.5 times the online spending, and local advertising revenue is projected to be about 20% higher in 2021 than it is today.
While the number of online visitors to a given website has risen, the number that visit local websites is expected to decline, according to the report.
For local advertisers, that means a higher price tag.
Nielsen said it estimates that online advertising revenues will be $6.7 billion in 2021, up from $4.9 billion in 2020.
The online advertising industry will be worth $19.4 billion in the same period, up nearly $1 billion from 2021.
While Nielsen doesn’t include data on local ads in its estimate, the average amount spent per visitor in 2021 is $1.60, and a typical visit costs $6, the report said.
While online ad spending has been growing faster over the past several years, the market is expected, in 2021 at least, to grow at a much faster pace than local ads.
Local advertising is estimated to generate an average of $5.5 billion in online ad revenue, while online ad spend is estimated at $8.1.
The report found that while local advertisers may be seeing a bump in online traffic, local traffic will still be a fraction of the amount of online traffic.
The increase in online advertising traffic is likely due to increased digital advertising spending, the study found.
Local advertisers are more likely to spend on local content, such as television and radio.
The study also found that, in 2017, local advertising revenues in the U.S. totaled $12.3 billion.
That’s up from the $9.6 billion generated in 2020, and the $8 billion generated last year.
However, the decline in local advertising over the last two years likely comes from changes to how local ads are priced, according the report, which found that local ads for both print and digital are now about half as expensive as print ads.
The average amount paid by local advertisers in 2021 was $2.90, up $1 from the 2021 average.
Local ads are still seen as a cheaper way to advertise, the Nielsen report said, but the report says that “the trend toward lower-cost, local-based advertising may be temporary.”