BIA/Kelsey Forecast: U.S. Local Digital Ad Revenues to Nearly Double by 2015

March 22, 2011


Chantilly, VA, and Boston - Mar 21, 2011 - According to BIA/Kelsey's U.S. Local Media Annual Forecast (2010-2015), local advertisers continue their steady migration to digital media platforms. BIA/Kelsey expects online/interactive advertising revenues to climb to $42.5 billion by 2015, almost double 2010's $21.7 billion, representing a compound annual growth rate (CAGR) of 14.4 percent. This growth coincides with anticipated improvement in the U.S. economy and a continued rise in overall local advertising, which the firm expects will reach $153.5 billion in 2015, up from $136.3 billion in 2010, representing a 2.1 percent CAGR.

As digital media -- delivered to consumers through mobile, Internet or other electronic methods -- continues to gain traction with local advertisers, BIA/Kelsey predicts it will represent 23.6 percent of all local ad spending by 2015.

Shift toward digital media

BIA/Kelsey reports among the key drivers of this year's forecast are:

  • The increased number of smartphones and tablets is already playing a role in affecting revenue shares earned by traditional media.
  • Continued significant newspaper revenue erosion will drive pay walls and other creative approaches for rebuilding revenue base.
  • Intense political advertising and uptick in national advertising lifted television and other media revenues in Q4 2010, increasing prospects for the forecast period.
  • The interactive/online sector continues to advance and multiply with new formats such as social and mobile.

    BIA/Kelsey's U.S. Local Media Annual Forecast also notes that social forms of digital media are increasingly becoming an important component of online revenues. Consumer spending on deal-a-day offers, which the firm expects will grow to $3.9 billion by 2015, illustrates an expanding market that includes Facebook and Twitter.



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