U.S. Local Interactive Ad Market to Grow
While current economic conditions will reduce overall local advertising spending through 2013, the local interactive segment will grow during that same period.
This was a key finding from a report by BIA Advisory Services and its Kelsey Group division. The interactive share of local ad spending, the report found, will more than double from 9 percent in 2008 to 22.2 percent in 2013.
The interactive segment — which includes mobile, Internet Yellow Pages, local search, online verticals and classifieds, voice search, e-mail marketing, and other interactive revenues generated by traditional media players — will grow from $14 billion in 2008 to $32.1 billion in 2013, the report says.
On the other hand, the traditional segment — encompassing newspapers, direct mail, television, radio, print Yellow Pages, nondigital out-of-home, cable television and magazines — will decrease from $141.3 billion in 2008 to $112.4 billion in 2013.
All other local media will experience marginal to rapid declines in the next 18 months to 36 months, the report says. A small number of traditional media will rebound with a revived economy beginning in 2011, though most traditional media will continue to decline, albeit at a slower pace.