Local Website Revs Set To Rise 50% In '08
June 2, 2008 at 6:19 AM (PT)
Online ad revenues may be getting squeezed by the law of large numbers and the dismal economy, local media sites are still expected to thrive this year, rising 50% to $13.1 billion this year, according to a report provided to PAIDCONTENT by analyst BORRELL ASSOCIATES.
Over the past few months, websites belonging to local TV and radio stations, as well as newspapers to some extent, have been developing identities independent of their traditional media versions. BORRELL, which has warned that convergent ad sales dilute the revenues for online media, finds that by loosening their ties to old media, local web outlets have been able to realize higher gains.
Specifically for radio, BORRELL says Radio lacks motivation: Since radio's traditional ad base is not being lured away by a specific internet application the way online classifieds have hurt newspapers or search engines are attacking YELLOW PAGES, the industry is not as motivated as those others to ramp up and differentiate their online properties. By the end of '08, BORRELL forecasts radio sites revenues to gain 19% to $225 million from 2007's $189 million.