Commentary
Online/Digital Captures 25% Of Local Media Revenues in 2015
- by Jack Loechner , Staff Writer @mp_research, October 3, 2014
According to the U.S. Local Media Forecast 2015 from BIA/Kelsey, total local media revenues are forecast to reach $139.3 billion in 2015, up from $137 billion this year, representing a growth rate of 1.6%.
Online/digital will account for 25.2% of total local media revenues in 2015. Revenues for online/digital are expected to grow from $31 billion in 2014 to $35 billion in 2015, representing a 13.1% growth rate.
U.S. Local Media Revenues ($ in Billions; 2014-2015) | |||
Media | 2014 | 2015 | % Growth (’14-’15) |
Total | $137.0 | $139.3 | 1.6% |
Online/Digital | $31.0 | $35.0 | 13.1% |
Traditional | $106.1 | $104.2 | -1.7% |
Source: BIA/Kelsey, September 2014 | |||
Mobile local and local social are among the categories within the online/digital segment that are seeing strong growth. Forecasts for several online/digital categories include:
U.S. Local Digital Media Ad Spend Segments Forecast ($ Billion; 2014-2015) | ||
Local Media | 2014 Ad Spend | 2015 Ad Spend |
Search | $7.1 | $7.2 |
Mobile | 4.3 | 6.6 |
Display | 4.3 | 4.9 |
Social media | 2.5 | 3.6 |
Video | 2.3 | 3.0 |
Source: BIA/Kelsey, September 2014 | ||
Mark Fratrik, chief economist, BIA/Kelsey, says “… we expect the pace of growth in the overall local advertising marketplace to moderate through 2019… resulting in a 3% compound annual growth rate… growth in online/digital advertising revenues will remain strong… with a 12.2% CAGR through 2019… compared with essentially flat revenues for traditional advertising (-0.5% CAGR) during the same period…”
N.B. BIA/Kelsey defines the local media advertising marketplace as those media that provide local audiences to all types of advertisers.
For more information from BIAKelsey, please visit here.
Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.