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.
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.