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Digital Ad Revenues Will Grow 13% in 2012

  |  July 17, 2012   |  Comments

Digital will account for 25% of the local ad market in the future, says BIA/Kelsey.

Local digital advertising revenues will grow by 13 percent by the end of 2012, according to statistics from BIA/Kelsey. The US Local Media Forecast 2011-2016 report also predicts that several local media segments will exceed this overall growth rate. Mobile search is set to grow by 77 percent, for instance. Meanwhile, online video by 52 percent, and social by 26 percent. Additionally, digital ad revenues will be the only source of growth for newspapers, according to BIA/Kelsey.

The forecast also suggests that digital will account for 25 percent of the local ad market in the future as spending on various media segments evolves. Emerging media sectors like mobile, video and social are garnering significant revenues from ad dollars. Meanwhile, Kelsey sees newspapers using digital platforms to drive ad revenue and offset losses on the print side.

"With traditional media getting more than three-quarters of the total local media ad budget, coordination between traditional and online media is the best way to explore how to effectively optimize new media, such as social networks and online video, to increase the chance of achieving business goals," said Mark Fratrik, VP and chief economist at BIA/Kelsey, in a press release.

The report also lists compound annual growth rates for the period of 2011 to 2016 for digital ad revenues for key media segments:

  • Mobile - 45 percent
  • Online video - 37 percent
  • Social media - 21 percent
  • Email, reputation and presence management - 15 percent
  • Internet Yellow Pages -13 percent
  • Television online revenues -13 percent
  • Radio online revenues -12 percent
  • Digital out-of-home - 12 percent
  • Online - 9 percent
  • Newspapers online revenues - 5 percent

BIA/Kelsey's research is based on proprietary data including information from company, industry and public national statistics.

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ABOUT THE AUTHOR

Melanie White

Melanie White is the Editor of ClickZ, where she has worked since July 2012. White has been with Incisive Media (ClickZ's parent company) since 2009 where she was Deputy Editor/ US Editor for one of the financial risk management titles, International Custody and Fund Administration (later Custody Risk).

In addition, White worked on FX Week where she was a Senior Reporter. She has also worked and contributed to a number of other titles, including The Accountant, International Accounting Bulletin, the New York Post, Independent Magazine (UK), as well as the broadcast title Sunday Live with Adam Boulton at Sky News.

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