BIA/Kelsey is reporting US online local advertising revenues are expected to rise to $23.3 billion in 2011 for a total of 17.2% of total local advertising revenues this year. Early this year, the predictions called for total online local ad revenues to hit only $22.3 billion. The 2015 share is expected to increase to 25.4%.
Mark Fratrik, VP and chief economist at BIA/Kelsey was surprised to see an increase in digital ad spending. “I thought it would hold steady, especially in the midst of an economic slowdown,” he said.
Overall local media market advertising is showing a slight decrease for full year 2011. Earlier projections in March 2011 called for spending to reach $136.2 billion, revised projections now call for a slightly lower total of just $135.9 billion.
The largest downward projects come for yellow pages and newspapers. Yellow pages are expected to see only $9 billion in revenue and newspapers will reach just $23.7 billion. These figures represent decreases of $600 million compared to March 2011 forecasts.
Over the next five years, projections for yellow pages are for decreases of 7.7% in spending. While newspaper revenue is expected to decrease from 19% to 12.9% of total market share.
Fratrik says he believes digital advertising will continue to see its share of market increase as yellow pages and newspapers share declines. “In terms of Yellow Pages, online search is so much quicker and more attractive to people,” he added.
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