BIA/Kelsey's Annual U.S. Local Media Forecast 2011-2016
Matt Booth, 11/12/2012
BIA/Kelsey’s updated 2011-2016 U.S. Local Media Forecast projects moderate growth in the overall local ad market during the five-year forecast period. The continuing economic sluggishness has led to a slight pull back in our 2012 advertising revenue forecast, despite the boost provided by election-year advertising. By 2016 BIA/Kelsey expects digital revenues to account for more than a quarter of U.S. local media advertising. This document also features our forecast for local online advertising. Search advertising still dominates interactive spend, accounting for slightly more than 51 percent of the total online market. Local search will grow faster than the overall search market, at a 12.1 percent CAGR. The display-related ad market is 55.9 percent of the overall search market and the second largest contributor to interactive spend. Local display will also outpace display overall, growing at a 16.2 percent CAGR for the forecast period. BIA/Kelsey is anticipating desktop search growth to slow in the forecast’s outer years as mobile search traffic ramps quickly.