Local Digital Ad Revs To $42B By 2015

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Digital advertising will push local media advertising to double in five years' time to some $42.5 billion. 

BIA/Kelsey says that means a 14.4% compounded growth rate every year until 2015. At the end of 2010, the media research company said local media was at $21.7 billion.

One major reason is digital advertising -- which will represent 23.6% of all local advertising, or around $10 billion.

BIA/Kelsey says all this growth coincides with anticipated improvement in the U.S. economy, which includes a continued rise in overall local advertising. U.S. advertising will see a 2.1% compounded growth through the next five years, reaching $153.5 billion in 2015 -- up from $136.3 billion at the end of last year.

Also, consumer marketing "deal-of-the-day" deals through social sites -- Facebook and Twitter -- will contribute to a rapid digital advertising rise, climbing to some $3.9 billion by 2015.

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Tom Buono, chief executive officer, BIA/Kelsey, said: "Our analysis indicates that as advertisers move to online, mobile and particularly, the variants of social media, we are fast approaching a tipping point where digital media will soon become a dominant segment of the local advertising marketplace."

Key areas of advertising movement are smartphones and tablets pulling in an increased share of traditional advertising dollars. Continued newspaper revenue erosion will push more print pay walls, while political and national ads in television and other media will propel industry dollars.

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