The state of the economy in 2009 forced changes to the local ad market. This has caused BIA/Kelsey, a large media strategies group, to lower expectations for local advertising spending, pushing the recovery curve out one year further than previously forecast.
Last year, according to the firm’s “Annual US Local Media Forecast,” US local ad spending reached $130.2 billion, or 55.3% of the total. That was lower than what BIA/Kelsey projected in February 2009 forecasting $141.3 billion and a significant drop from the $156.3 billion spend on local advertising in 2008.
BIA/Kelsey believes that the total local advertising spending will continue to stagnate through 2011, while 2012 will bring more “meaningful recovery” to the ad market.
Some important points to be noted within this study suggest that:
• Buys Online will continue to get a larger share of the local ad spending pie with increases from 12% in 2009 to a projected 14% in 2010.
• By 2014, BIA/Kelsey expects one-quarter of all local advertising spending to be online!
• In January, Barclays Capital also reported 2009 local ad spending down significantly from the year before, by about 22%. Barclays similarly expects a flat local ad market through 2011.
Here are some graphs to show details concerning the ad market in 2010:
Information Provided By: eMarketer
Blog Post Written By: Kent Seiders