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BizReport : Advertising archives : September 22, 2014

Forecast: Local media revs to push $140b

Local media is increasingly important to advertisers, especially in the online space, as more and more consumers switch how they consume news, entertainment and stay connected to important people in their lives. This importance should push local media ad revenues, right? Not as much as many might think.

by Kristina Knight

BIA/Kelsey is releasing the US Local Media Forecast 2015, and predicting an increase in local media ad revenues. But the growth isn't steep compared to how much consumers are using desktop and mobile devices to stay connected. The forecast suggests a $4 billion bump between 2014 when the prediction is for local media to pull in $137 billion and 2015 when experts believe local media will pull in about $139.3 billion.

The increase represents a 1% growth rate.

"We expect the pace of growth in the overall local advertising marketplace to moderate through 2019, resulting in a 3% compound annual growth rate," said Mark Fratrik, Chief Economist, BIA/Kelsey. "Growth in online/digital advertising revenues will remain strong, with a 12.2% CAGR through 2019, compared with essentially flat revenues for traditional advertising (-0.5% CAGR) during the same period."

Some interesting takeaways from the report include:

• Mobile local ad revs will increase from $4.3 b (2014) to $6.6b (2015)
• Local social media revs will increase from $2.5 b (2014) to $3.6b (2015)
• Local search will account for $7.2b (2015); local search should bring in $7.1b in 2014
• Local display revenues will account for $4.9b (2105), up from $4.3b this year
• Local online video revs could increase to $3.0b (2015) from $2.3b this year

The full report will be presented at BIA/Kelsey's Leading in Local: SMB Digital Marketing conference this week in New Orleans.

Image via Shutterstock

Tags: BIA/Kelsey, local ad trends, local advertising, local marketing

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