25% of Digital Advertising Will Be Local By 2014
The economic downturn has decreased revenues in nearly every sector of business, including digital advertising. Yet, because of the shift, the digital sector has quickly become a haven for more traditional ad budgets. The Internet is viewed as the most measurable medium and its performance-based ad models are becoming increasingly attractive for offline campaigns that lack the deep metrics and engagement factor that digital media provides.
Local advertising deserves ample attention in this shift since it accounts for 55% of all ad spending. The total ad market in 2009 was over $235 billion; more than $130 billion of that was spent on local ads, as reported by BIA/Kelsey in its new report: “U.S. Local Media Annual Forecast.”
By 2014, local advertising is predicted to account for 25 percent of all digital media advertising. A “steady shift toward digital media” will cause online spending to increase to $37 billion by that time, up from $15 billion in 2009. While local will grow, the BIA/Kelsey report also foresees larger than previously forecasts declines in newspapers and direct mail.
Mobile will drive a good deal of the local advertising growth. Most people now have Internet access via their mobile devices and when we’re on the move, we’re thinking and engaging at a local level. Thus, cohesive mobile campaigns will not only help businesses, it will serve the mobile subscribers directly or indirectly seeking local products and services. As more mobile ad formats are delivered, the mobile ad market could see even greater gains.
Post by Jennifer Gosse.