Borrell Associates expects total local advertising budgets to rise 5.8% compared with the previous year. Non-digital advertising will fall by 2.2%, whereas digital will rise 12.7%. In total, advertisers will spend $126.8 billion this year.

Local digital advertising will continue to rise from $68.4 billion in 2018 to $73.4 in 2020, and then slightly decline to $71.3 in 2022.

Out-of-home is the only traditional, non-digital type of advertising showing “consistent” growth in 2018, rising 2.8%.

Cory Elliott, vice president of research at Borrell Associates, said 42% of small businesses look to increase local budgets more than 5% this year, whereas 53% will keep budgets the same and 5% will decrease them.

In a study that Borrell conducted prior Facebook’s data fiasco, small business owners said they would pull back local ad investments in the social media company.

YouTube will replace Facebook as the media of choice in 2018, but Elliott believes small company owners and employees need a bit more instruction on how to use the media. “They’re teaching themselves how to use video and they’re willing to spend a little more to do it,” he said.

Indeed, 69% said they will increase the amount they spend this year on YouTube, whereas 61% said they would increase the amount spent on Facebook, 51% on Instagram, and 42% on Twitter.

The initial prohibiting factor, Elliott said, is that they considered “video was too expensive, but give it a year and they’re making movies on their phone,” Elliott said.

Still, social media will remain one of the most effective digital advertising media, followed by search engine marketing, email, and behavioral targeting. Video is down on the list at No. 7, simply because small companies need additional direction on how to use it.

About 74% said they use digital and traditional media together, with 22% saying they only use traditional such as outdoor media, magazines and radio.