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18 Local Advertising Stats Every Marketer Needs to Know in 2018

April 10, 2018 at 12:22 PM

18 Local Advertising Stats for 2018

Local advertising is no longer just for small business. Multinational conglomerates, political candidates, and e-commerce giants are all turning to local advertising as a means of better segmenting their audiences in order to contextually relevant messages that resonate with a local market.

Around the world, we’re seeing a shift from a “one-size-fits-all” approach to marketing to a people-based approach rooted in physical location.

And for good reason.

Local advertising offers brands a superior ROI and better addresses the needs of an increasingly mobile and on-the-go consumer. It appeals to a sense of urgency inherent to local search, and it helps marketers cut through the noise with a personalized touch.

But don’t take our word for ithere are 18 local advertising stats that shed a little light on local’s past, present, and future:

Local advertising is essential to growth

Whether it’s Walmart or a corner coffee shop, businesses of all sizes are taking a local approach to their marketing. And for good reasonthat’s where the ROI is. Check out these shocking stats to see just how critical local advertising is to the growth of a business:

  1. 58% of senior marketers consider local marketing an essential factor for a business’s profitability and growth [CMO Council]
  2. On average, businesses make $2 in revenue off of every $1 invested in local advertising through AdWords. [Google]
  3. Retailers advertising locally on Facebook see an average ROI of 152%. [Nanigans]
  4. In a survey of 3,511 local marketers, respondents ranked social media advertising as the most effective out of a list of 30 promotional channels that included TV, radio, print, and offline advertising. [Borrell Associates]

Local advertising stats: Google AdWords has a 200% return on investment (ROI)

Twitter icon Click to tweet this local advertising stat. 

Local search brings in intent and urgency

What’s driving the high ROI of local advertising? The quality of leads it brings in.

Leads acquired through local marketing tend to have higher intent and a greater sense of urgency. In other words, they have a specific need and are looking for an immediate solution.

  1. 88% of consumers making local searches from a mobile device take an action (calling a business, making a purchase, or visiting a store) within 24 hours. [Google]
  2. 51% of local mobile searches result in a store visit.  [Google]
  3. 74% of shoppers indicate being more likely to respond to location-specific messaging. [SIM Partners]
  4. 63% of local searches are made by consumers still undecided on a provider or retailer, meaning this high-intent traffic is ripe for the picking. [Local Search Association]

Local advertising statistics: Over half of all local Google searches on mobile result in a store visit.

Twitter icon Click to tweet this local advertising stat. 

Consumers want to patronize local business

While it may seem like local and small business is on the decline, studies show that consumers actually prefer local business and would rather visit a store near them than a website or a large brand that hasn’t adopted a local-first approach.

  1. One out of every three mobile searches is local, meaning it has a location-based keyword: restaurants near me or closest coffee shops. [Google]
  2. Local searches on mobile devices are growing 50% faster than mobile searches overall. [Google]
  3. 80% of consumers prefer locally relevant advertising. [SIM Partners]
  4. 69% of consumers expect business search results to be within five miles of their current location. [Google & Nielsen]
  5. One out of every four consumers consider proximity of a business location to be the most important factor when evaluating search results. [Telmetrics]

Local marketing stats: Eight out of ten consumers prefer contextually relevant marketing

Twitter icon Click to tweet this local advertising stat. 

Local ad spending is growing. Fast.

Despite its recent growth, local marketing is still in its infancy. Across the globe, marketers are starting to reap the rewards of hyperlocal and doubling down on this lucrative channel.

  1. Local ad spend is growing at a double-digit compounded annual growth rate (11.9% from 2016 to 2021), and revenues derived from local advertising are expected to hit $174 billion in the U.S. alone by 2021. [BIA/Kelsey]
  2. In a survey of 3,511 marketers, 63% reported increasing their local digital advertising budgets in 2017. [Borrell Associates]
  3. 80% of mobile marketers are using location-based advertising, the majority of which highlighted it as a priority. [xAd]
  4. Local isn’t just for small business either: Two out of three national brands invest in local marketing. [Balihoo]
  5. 40% of enterprise marketers plan on increasing their local digital spending in 2018. [Street Fight]

Local marketing statistics: 66% of enterprises invest in local ads

Twitter icon Click to tweet this local advertising stat. 

The future is local

Today’s consumers want personalized and contextually relevant messaging. They want to shop local, and they want to know that their needs can be met within hours of making a search or engaging with an advertisement.

And big brands and small businesses alike are picking up on this.

It’s the reason e-commerce giants like Amazon and Warby Parker are opening brick-and-mortar stores and the reason why enterprises everywhere are adopting a “glocal” mindset of thinking globally and acting locally.

Local marketing isn’t just here to stay. It’s the future, and the proof is in the data.

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