Carat Says U.S. Ad Spending Will Rise 3.7% In 2011; BIA/Kelsey Forecasts Digital Ad Revenues Will Double By 2015
March 21, 2011 at 7:41 AM (PT)
Ad spending is looking up, reports media agency CARAT, which increased its projections for the remainder of this year. CARAT's AUGUST 2010 forecast called for a 1.7% increase for 2011. Now the group expects a 3.7% increase in the U.S.
Radio received some good news in the updated forecast, with a projected "boost" coming its way.
CARAT noted the auto sector being on the rise, and anticipated advertising would get a boost from both a presidential campaign and the LONDON OLYMPICS.
BIA/Kelsey Forecasts U.S. Local Digital Ad Revenues To Nearly Double 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 of 14.4%. 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% growth rate.
"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 CEO TOM BUONO. "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."
BIA/KELSEY reports among the key drivers of this year's forecast are:
* The increased number of smartphones and tablets is already playing a role in affecting revenue shares earned by traditional media.
* Continued significant newspaper revenue erosion will drive pay walls and other creative approaches for rebuilding revenue base.
* Intense political advertising and uptick in national advertising lifted television and other media revenues in Q4 2010, increasing prospects for the forecast period.
* The interactive/online sector continues to advance and multiply with new formats such as social and mobile.