BIA/Kelsey Sees Steady Growth for Digital Ad Revenues Through 2016

BIA/Kelsey published a new report today forecasting the overall U.S. local media market to grow steadily through 2016.

Based on the latest update to the firm’s U.S. Local Media Forecast (20011-2016), the firm now anticipates total U.S. local media advertising revenues to top $147 billion within four years.

As MMW has frequently covered in the past, local search is poised to grow faster than the overall search market, from $5.7 billion in 2011 to $10.2 billion in 2016. As a result, the report also calls for ad revenues for the online/interactive/digital segment of the U.S. local media market to grow from $21.2 billion in 2011 to $38.1 billion in 2016.

Similarly, the U.S. local display market will outpace the overall display market, growing from $2.4 billion in 2011 to $5.1 billion in 2016 (16.2 percent CAGR) based on thr projections made today.

“Search advertising still dominates interactive spending, accounting for slightly more than 51 percent of the total online market,” says Matt Booth, chief strategy officer at BIA/Kelsey. “Overall, we remain very bullish on interactive spending, and especially on new mobile monetization methods like point-of-sale offerings that are showing performance improvements. In fact, we expect mobile growth to offset some of the slowing in core search and display in the outer years of the forecast.”