• by Wayne Friedman , November 7, 2011

Better news for the local digital media platform: Media revenues will total $23.3 billion by the end of this year, up a bit from earlier forecasts.

Chantilly, Va.-based media researcher BIA/Kelsey raised its forecast for what it says is a "robust performance" among local digital media sites.

Earlier this year BIA/Kelsey estimated that the local digital media market would reach $22.3 billion in revenue by the end of 2011. Local digital media will represent 17.2% of all local media, up from a projected 16.4% share.

All this comes against a total local media market forecast downgrade to $135.9 billion, down from $136.2 billion. Mark Fratrik, vp and chief economist, BIA/Kelsey, explains in a release the effect of a slowdown of overall local media:

"That 'pulling back' by national and local businesses is hitting hard some of the more traditional media, due in part to the generally lower prices of some digital media and the desire by these businesses to shift their budgets to targeted audience opportunities and performance models."

BIA/Kelsey says that in four years, local digital media's share of all overall local media will rise to 25.4%. In five years, it says all local media revenues will inch up 1.7%, reaching $149.4 billion.

Fratrik adds: "As the economy wavers between meager growth and the prospect of a second recession dip, advertisers remain guarded and apprehensive about making spending commitments."

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