U.S. Local Ad Revenues to Reach $145 Billion in 2014
February 22, 2010
ad spending will hit nearly $145 billion in the United States in four years,
BIA/Kelsey predicts. The projected sum represents an annual compound growth
rate of 2.2 percent from last year, slowed down by sluggish growth through next
year. The real recovery sill start in 2012, BIA/Kelsey analysts say, and it
won’t necessarily involve the full restoration of traditional media.
“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 Neal Polachek, president of BIA/Kelsey.
BIA/Kelsey forecasts spending on traditional media to decline from $115 billion
in 2009 to $108.2 billion in 2014, a CAGR of -1.2 percent. The money is going
online. During the same period, spending on online and interactive media is
projected to grow from $15.2 billion to $36.7 billion, a CAGR of 19.3 percent.
Key factors influencing the forecast include newspaper and direct-mail declines
that were larger than previously anticipated; slow growth of online search,
display and classifieds; and a further ramp-up of political advertising due to
the relaxed corporate participation rules.
BIA/Kelsey said 55 percent of all ad spending would be local as defined by small
and medium-sized business spending, and national advertisers or regional
advertisers making local buys. In 2009, total U.S. ad spending was $235.6
billion--based on BIA/Kelsey’s estimate of the local segment and estimates by
several market forecasters focused on national spending. Of that, BIA/Kelsey
estimates $130.2 billion was spent on local ad buys, with $105.4 billion
attributed to national advertising.
(image by Henríquez
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Media for 2010”
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core role mobile will play in the $140 billion local media industry.”
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Down 22 Percent”
The television industry is ending 2009 with lower than expected revenues of
$15.6 billion, a 22.4 percent decline from 2008.
May 8, 2009: “Broadcast
Internet Revenues are on the Rise”
TV and radio stations took in $805 million online last year, or around 7.3
percent of the $11 billion in local online ad spending. Of the $805 million, TV
took $463 million and $342 million went to radio.
May 4, 2009: “TV Needs New Ideas to
Create New Revenues”
TV industry revenues will fall below the $20 billion mark this year for the
first time since 2003.
March 20, 2009: “Mobile DTV Poised for
Rising Revenue Waves”
Mobile advertising revenues will hit $3.1 billion in 2013, up from $160
million last year.