Borrell Report Sees Local Digital Advertising Growing
November 16, 2011 at 5:06 AM (PT)
In a new report, BORRELL ASSOCIATES concludes that even after two years of flat revenues for the local online ad marketplace, a major rebound is on the way. BORRELL says local digital advertising will rise 18% in 2012 to $18.5 billion, surpassing the traditional leader in the local ad spending, newspapers. Long term, mobile advertising will grow digital advertising to over $26 billion by 2016.
"In addition to the resurrection of the local online ad space in general," reports PAIDCONTENT.ORG, "which has suffered greatly from the weak economy and the inability to fully coax small business into increasing their digital marketing budgets, traditional local media players will also experience a reawakening."
Currently, TV, newspapers and radio have 92% of all local ad spending. "But as the traditional broadcast and print businesses' declines took a more precipitous turn during the recession and the anemic aftermath we're currently in, digital ad sales had either been holding steady or emerged as significant areas of growth. That has spurred media companies to finally develop dedicated online ad sales forces," writes PAIDCONTENT. "As those online sellers have settled in, budgets are expected to rise for local online as a result."
BORRELL notes this will give traditional media companies the opportunity to take ad spending share away from internet companies. The report sees internet companies losing 1.6% while local TV stations gain 1.6%. Radio will gain 1% and newspapers 0.8%.