BIA Kelsey: No Local Growth Until 2012
February 22, 2010 at 5:21 AM (PT)
BIA KELSEY's news isn't as rosy as that of the RAB, with ad spending on local media not expected to grow until 2012. The analysis, released TODAY, (2/22), predicts the U.S. local advertising market will reach $144.9 billion by 2014, which is an annual growth rate of 2.2% percent from 2009.
"Even with improvements in the overall economy, we do not anticipate a rapid recovery among traditional media over the forecast period, because we believe the structural change in the local media industry has accelerated," said BIA KELSEY Pres. NEAL POLACHEK.
PAIDCONTENT.ORG reports "While local media struggles to regain momentum, the shift to digital continues. In 2008, digital represented 10% of local ad spending. By 2014, digital will make up a quarter of the total local media dollars. Spending on traditional media will decline from $115 billion in 2009 to $108.2 billion in 2014. At the same time, spending on online/interactive will grow from $15.2 billion to $36.7 billion, a compound annual growth rate of 19.3%."