3-20-2012
Today, BIA/Kelsey will release its latest 5-year forecast on advertising. It's a report the company puts together twice every year. Due to a stagnant economy last year BIA/Kelsey is first revising down its revenue figures for 2011 by $3 Billion. "In October we projected the total of the U.S. local media market to be $135.9 billion in 2011, but we now 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." Looking ahead BIA/Kelsey predicts slow growth in local advertising and strong gains in digital
"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. Growth in total local media advertising will not keep pace with that of the overall economy. Growth in online/interactive/digital advertising revenues will remain strong, with a 2011-2016 compound annual growth rate of 12.7%. That compares with a 2011-2016 CAGR of 0.2% for traditional advertising revenues. By 2016 local online/interactive/digital advertising revenues will be $38.5 billion.
Add a Comment Send This Story To A Friend
