Report: Local Digital Revenue to Reach $38.1B by 2016 | Street Fight


Report: Local Digital Revenue to Reach $38.1B by 2016

0 Comments 15 November 2012 by

BIA/KelseyA new BIA/Kelsey forecast projects moderate growth in advertising revenue for all local media through 2016, with much more rapid growth for online, digital and interactive advertising.

In its updated U.S. Local Media Forecast, BIA/Kelsey says its analysts anticipate local media advertising revenues to reach $147.1 billion by 2016, at a 2.1% annual growth rate and more specifically online, interactive and digital ad revenues to reach $38.1 billion that same year, at an annual growth rate of 12.4%. Within the local media sphere, search is expected to encompass a slim majority, 51%, of online ad revenues, with the local search market, projected to reach $10.2 billion by 2016, outpacing the rate of growth of overall search. The report also projects 16.2% annual growth in the local display market, reaching $5.1 billion by 2016.

Local media ad revenues are projected to hit $134.6 billion in 2012, up from $132.7 billion in 2011. In the forward-looking report, BIA/Kelsey sees the largest year-to-year growth expected to come between 2015 ($142.1 billion) and 2016 ($147.1 billion). But even as online local media ad revenues are expected to grow, traditional local media, though still pulling in a clear majority of 2011’s ad revenues, is projected to see its own, legacy model ad revenues fall 0.4% annually. Local online ad revenues, currently accounting for 16% of local media ad revenues overall, should reach a 25.9% market share by 2016.

The traditional heavy hitters — direct mail, TV, newspapers and radio — will continue to attract the most ad dollars in 2016, BIA/Kelsey says, but analysts are particularly high on online/interactive, projected to be 10.2% of local media revenues by 2016 (excluding digital revenues raked in by traditional media sources), and mobile, 2.7%.

Local Media Revenue Sources in 2016

“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,” said Matt Booth, chief strategy officer and program director of BIA/Kelsey’s Interactive Local Media. “In fact, we expect mobile growth to offset some of the slowing in core search and display in the outer years of the forecast.”

“We continue to see a dramatic increase in spending on online media, and it is fundamentally changing the media planning and buying process for advertisers,” added Mark Fratrik, BIA/Kelsey’s vice president and chief economist, in a release. “As businesses examine their advertising opportunities, the trend is moving toward building a coordinated ad plan across different platforms, with different messages across different media.”

Patrick Duprey is an editorial assistant with Street Fight. Follow him on Twitter @PatrickJDuprey.

Denver — March, 5th, 2015
Learn from the pros, network with partners and clients, and ski! Don't miss our second annual event on this important topic.
Register now and save!


Get hyperlocal industry headlines in your inbox every morning. Subscribe to the Street Fight Daily newsletter.

See how brands compare in local presence across areas such as local SEO, data accuracy, social engagement and more. Presented by Where2GetIt and Street Fight. Click here to see the battle!

Free White Paper: Contextualization

Learn how to deliver better, revenue-driving consumer experiences. Download "Contextualization: Leveraging Location-Based Technology and Mobile to Drive Success for Brands."

Sponsored by Artisan Mobile.

Follow Us

Get the latest Street Fight news, information and analysis via Twitter and Facebook.

The Commerce Graph

The “Commerce Graph” is a new framework we have developed to think about the future of physical exchange. The model offers an alternative to the dominant narrative about the commerce landscape that frames digital networks as an adversary of physical exchange.

The $20 Billion Mobile Marketing Opportunity

Strategies and insights into the landscape of targeting options and how they deliver foot traffic and sales for SMBs.
Check out our 2013 report and get your copy today!


© 2015 Street Fight.

Powered by WordPress. Hosting by