BIA/Kelsey's new forecast expects nearly a doubling of revenue in that time span from 2010's $21.7 billioin. Overall local advertising is likely to reach $153.5 billion in 2015.
Local Digital Ad Revenues $42.5 B By 2015
Local advertisers continue their steady migration to digital media platforms, according to BIA/Kelsey’s “U.S. Local Media Annual Forecast (2010-2015).
” BIA/Kelsey expects online/interactive advertising revenues to climb to $42.5 billion by 2015, almost double 2010’s $21.7 billion, representing a compound annual growth rate (CAGR) of 14.4 percent. This growth coincides with anticipated improvement in the U.S. economy and a continued rise in overall local advertising, which the firm expects will reach $153.5 billion in 2015, up from $136.3 billion in 2010, representing a 2.1 percent CAGR.
As digital media – delivered to consumers through mobile, Internet or other electronic methods – continues to gain traction with local advertisers, BIA/Kelsey predicts it will represent 23.6 percent of all local ad spending by 2015.
“As the business climate improves and advertisers step back into the market, they are gravitating to digital options that perhaps were not as mature before the recession began,” said Tom Buono, CEO, BIA/Kelsey. “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.”
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