In its U.S. Local Media Forecast 2015, BIA/Kelsey forecasts total local media revenues to reach $139.3 billion in 2015, up from $137 billion this year, representing a growth rate of 1.6 percent. BIA/Kelsey is presenting highlights from the forecast at its Leading in Local: SMB Digital Marketing conference, which is taking place through Wednesday in New Orleans.
Online/digital will account for 25.2 percent of total local media revenues in 2015. Revenues for online/digital are expected to grow from $31 billion in 2014 to $35 billion in 2015, representing a 13.1 percent growth rate.
Mobile local and local social are among the categories within the online/digital segment that are seeing strong growth. Forecasts for several online/digital categories include:
· Mobile local ad revenues will grow from $4.3 billion in 2014 to $6.6 billion in 2015
· Local social media revenues will grow from $2.5 billion in 2014 to $3.6 billion in 2015
· Local search revenues will grow from $7.1 billion in 2014 to $7.2 billion in 2015
· Local display revenues will grow from $4.3 billion in 2014 to $4.9 billion in 2015
· Local online video revenues will grow from $2.3 billion in 2014 to $3.0 billion in 2015
“We expect the pace of growth in the overall local advertising marketplace to moderate through 2019, resulting in a three percent compound annual growth rate,” said Mark Fratrik, chief economist for BIA/Kelsey. “Growth in online/digital advertising revenues will remain strong, with a 12.2 percent CAGR through 2019, compared with essentially flat revenues for traditional advertising—-0.5 percent CAGR—during the same period.”
BIA/Kelsey defines the local media advertising marketplace as those media that provide local audiences to all types of advertisers.