BIA/Kelsey Lowers 2011 Local Media Forecast
November 8, 2011 at 3:56 AM (PT)
BIA/KELSEY has raised its forecast for local digital media sites, using "robust performance," to describe revenues expected to total $23.3 billion by the end of this year, up a bit from earlier forecasts. MEDIAPOST reports, "earlier this year BIA/KELSEY estimated that the local digital media market would reach $22.3 billion in revenue by the end of 2011. Local digital media will represent 17.2% of all local media, up from a projected 16.4% share."
The new total local media market forecast is a downgrade to $135.9 billion, from $136.2 billion anticipated earlier this year.
BIA/KELSEY VP/Chief Economist MARK FRATRIK notes in this updated report, a slowdown of overall local media. "That 'pulling back' by national and local businesses is hitting hard some of the more traditional media, due in part to the generally lower prices of some digital media and the desire by these businesses to shift their budgets to targeted audience opportunities and performance models. As the economy wavers between meager growth and the prospect of a second recession dip, advertisers remain guarded and apprehensive about making spending commitments."
The FT report notes, "that in four years, local digital media's share of all overall local media will rise to 25.4%. In five years, it says all local media revenues will inch up 1.7%, reaching $149.4 billion."