U.S. Local Online/Interactive/Digital Ad Revenues to Reach $38.1B in 2016
CHANTILLY, Va., Nov. 15, 2012 /PRNewswire/ — BIA/Kelsey, advisor to companies in the local media industry, expects the overall U.S. local media market to grow moderately through 2016, at a 2.1 percent compound annual growth rate. In the fall update to the firm’s U.S. Local Media Forecast (20011-2016), the firm forecasts total U.S. local media advertising revenues to reach $147.1 billion by 2016.
BIA/Kelsey forecasts ad revenues for the online/interactive/digital segment of the U.S. local media market to grow from $21.2 billion in 2011 to $38.1 billion in 2016 (12.4 percent CAGR).
“Search advertising still dominates interactive spending, accounting for slightly more than 51 percent of the total online market,” said Matt Booth, chief strategy officer and program director, Interactive Local Media, BIA/Kelsey. “Overall, we remain very bullish on interactive spending, and especially on new mobile monetization methods like point-of-sale offerings that are showing performance improvements. In fact, we expect mobile growth to offset some of the slowing in core search and display in the outer years of the forecast.”
Local search will grow faster than the overall search market, from $5.7 billion in 2011 to $10.2 billion in 2016 (12.1 percent CAGR). Similarly, the U.S. local display market will outpace the overall display market, growing from $2.4 billion in 2011 to $5.1 billion in 2016 (16.2 percent CAGR).
The firm’s forecast will provide the context for BIA/Kelsey’s upcoming Interactive Local Media West (ILM West) conference, Dec. 4-6, in Los Angeles. ILM West, the leading event in the local digital arena for nearly 10 years, will draw from the forecast to thoroughly examine what’s shaping digital media and marketing in 2013. This year’s program is built around the theme, “Leading in Local,” featuring nearly 50 leaders from across the local industry, including keynote speakers Jason Finger, CEO, CityGrid Media; David Krantz, CEO, YP; Dan Levy, Director, Global SMB Markets, Facebook; Todd Rowe, Managing Director, SMB Global Sales, Google; and Vikram Sharma, CEO, Gannett Digital Marketing Services.
