Local Search Ad Revenue To Top $8B By ’15

BIA/Kelsey today issued a forecast that local search advertising revenues will increase from $5.1 billion in 2010 to $8.2 billion by 2015, representing a compound annual growth rate (CAGR) of 10%. Driving this growth in ad revenues is a continuing increase in local search activity. By 2015, the firm expects 30% of search volume will be local in nature.

“Local search ad revenues hit an all-time high last year, driven primarily by better product integration across search engines, especially Google,” said Matt Booth, senior vice president and program director of BIA/Kelsey’s Interactive Local Media practice. “Revenues will continue to grow as better targeting, increased mobile usage and improving integration drive up local search activity.”

The outlook for interactive local media is part of BIA/Kelsey’s U.S. Local Media Annual Forecast (2010-2015). In addition to local search, the interactive local media forecast covers the overall search market; display and local display advertising; and e-mail, reputation and presence management.

The complete forecast is available to clients of BIA/Kelsey’s Interactive Local Media advisory service, which provides research, analysis and evalutation of quantitative and qualitative data as they relate to the locally focused digital media and advertising marketplace. To learn more, click here.