BIA/Kelsey Forecast Sees Strong Digital Ad Growth
| RADIO ONLINE | Tuesday, March 20, 2012 | 4:05am CT |
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BIA/Kelsey is issuing its annual U.S. Media Forecast covering 2011 to 2016. Based on the changes in its estimates, the overall local media market will grow a bit more slowly over the next five years (at a 2.6% compound annual growth rate), and by 2016 the total will be $151.3 billion. The report reveals that growth in total local media advertising will not keep pace with that of the overall economy.
Growth in online, interactive and digital ad revenues will remain strong, with a 2011-2016 CAGR of 12.7%. This compares with a 2011-2016 CAGR of 0.2% for traditional ad revenues. By 2016 local online, interactive and digital ad revenues will rise to $38.5 billion.
In October, BIA/Kelsey projected the total of the U.S. local media market to be $135.9 billion in 2011, but its nows expect it to be only $132.8 billion. This slowdown, plus the lack of political advertising in 2011, resulted in a decrease of 2.4% compared with 2010.
