U.S. Local Digital Ad Revenues Remain Strong, Bolstering Slower Growth Overall in Local Media Market, According to BIA/Kelsey
U.S. local digital ad revenues will grow from $21.2B in 2011 to $38.5B in 2016 (CAGR: 12.7%)
CHANTILLY, Va.. (March 20, 2012) – In its newly released U.S.
Local Media Forecast (2011-2016), BIA/Kelsey,
adviser to companies in the local media industry, expects strong growth
in the digital segment of local media advertising through 2016. According
to the firm’s forecast, local online/interactive/digital advertising
revenues will climb from $21.2 billion in 2011 to $38.5 billion by
2016, representing a compound annual growth rate (CAGR) of 12.7 percent
(this figure includes mobile). The growth in the digital segment will
offset slower than anticipated growth in total local media advertising
BIA/Kelsey analysts will present highlights from the forecast at next
Local Media East conference, March 26-28,
in Boston. ILM East is the premier gathering of senior executives from
across the local digital media, advertising and marketing space.
Local Advertising Feeling the Impact of Global Economic Factors
The U.S. economy remained slow through most of 2011, owing to a variety of
factors including concerns about the European economic crisis, continued high
unemployment and the housing market’s lack of recovery. These factors
led to consumers and businesses “holding back” in their spending.
The weaker than expected level of economic activity resulted in a lower level
of local advertising revenues.
“In October, we projected the total of the U.S. local media
market to be $135.9 billion in 2011,” said Mark Fratrik, vice
president and chief economist, BIA/Kelsey. “But we now expect
it to be $132.8 billion. Based on the changes in our estimates going
forward, we expect the overall local media market will grow a bit more
slowly over the next five years.”
BIA/Kelsey forecasts total local media ad revenues to grow from $132.8 billion
in 2011 to $151.3 billion in 2016 (CAGR: 2.6 percent).
The firm expects traditional local media revenues to grow from $111.5 billion
in 2011 to $112.7 billion in 2016 (CAGR: 0.2 percent). Predictably, traditional
media revenues experience a bump during election years from political advertising,
which appears as a drop in revenues in odd-numbered years. Despite the year-over-year
political advertising seesaw effect, traditional media revenues remain remarkably
steady throughout the forecast period.
About the Annual U.S. Local Media Forecast
BIA/Kelsey defines the local media advertising marketplace as those media
that provide local audiences to all types of advertisers. BIA/Kelsey’s
Annual U.S. Local Media Forecast (2011-2016) draws from proprietary data; company,
industry and country information in the public domain; and discussions with
clients and non-clients about the direction and pace of development in the
local media marketplace. The forecast is available to clients of the firm’s
Continuous Advisory Services. For information on BIA/Kelsey’s CAS offerings,
contact Steve Passwaiter at firstname.lastname@example.org or visit http://www.biakelsey.com/Research-and-Analysis/Coverage-Areas/.
About ILM East
This year’s Interactive
Local Media East conference, which takes place
March 26-28 in Boston, focuses on channels, commerce and conversion — the
essential elements for succeeding in the local media and marketing space. The
agenda will cover the latest developments in local online media, search, mobile,
social, daily deals, video and transactions. Information about the conference,
including featured speakers, agenda, sponsors and online registration, is available
BIA/Kelsey advises companies in the local media space through consulting
and valuation services, research, Continuous Advisory Services and
conferences. Since 1983 BIA/Kelsey has been a resource to the media,
mobile advertising, telecommunications, Yellow Pages and electronic
directory markets, as well as to government agencies, law firms and
investment companies looking to understand trends and revenue drivers.
BIA/Kelsey’s annual conferences draw executives from across industries
seeking expert guidance on how companies are finding innovative ways
to grow. Additional information is available at http://www.biakelsey.com,
on the company’s Local
Media Watch blog, Twitter (http://twitter.com/BIAKelsey)
and Facebook (http://www.facebook.com/biakelsey).
For more information contact: