Advisory firm BIA/Kelsey recently announced forecast numbers that will delight online advertisers. They expect revenues from local online advertising to rise dramatically, nearly doubling over the next four years. This translates to $42.5 billion being spent on local online advertising by 2015 compared to the $21.7 billion spent in 2010.
In this year alone, they expect marketers to earn nearly $25 billion in revenues from local interactive marketing. This is a nice jump from the $21.7 billion earned from online ad revenues in 2010. Total local ad revenues in 2010 came in at $136.3 billion.
BIA/Kelsey is predicting online’s share of local advertising revenue will also continue to grow over the next four years. According to the firm’s estimates, the online and interactive local marketing percentage of revenue earned will increase 9.5% to 23.6% by 2015.
With a compound annual growth rate (CAGR) of 14.4% over the next four years, local interactive advertising revenues will take on even greater importance in advertiser’s overall marketing strategy. BIA/Kelsey predicts overall local advertising revenues will grow at a CAGR of 2.1% to $153.5 billion by 2015.