The Online/digital segment of local media revenues in the U.S. is forecast to grow more than 13% next year, eight times faster than local media revenues overall, a new study says. And, said BIA/Kelsey in its just-released U.S. Local Media Forecast 2015, growth in online/digital advertising revenues will remain strong, with a 12.2% CAGR through 2019. Traditional local ad revenues are forecast to decline at a -0.5% CAGR during the same period.
The report said online/digital would account for more than 25% of total local media revenues in 2015,reaching $35 billion, up from $31 billion in 2014.
Overall local media revenues are forecast to reach $139.3 billion in 2015, up from $137 billion this year, a growth rate of just 1.6%.
BIA/Kelsey said it expects Mobile local ad revenues will grow from $4.3 billion in 2014 to $6.6 billion in 2015
Leading the online/digital growth, not surprisingly, will be mobile local ad revenues. The fast-growing category is expected to reach $6.6 billion in 2015, up more than 53% from 2014’s expected $4.3 billion.
Also seeing strong growth? Local social media revenues, which could surpass $3.6 billion, up 44% from $2.5 billion in 2014.
BIA/Kelsey forecast local online video revenues to increase to $3 billion in 2015, up 30% from $2.3 billion in 2014.
The report also forecast local search revenues to increase 1.4% to $7.2 billion, up from $7.1 billion; and said local display revenues will grow 14% to $4.9 billion from $4.3 billion in 2014.
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, BIA/Kelsey.
BIA/Kelsey defines the local media advertising marketplace as those media that provide local audiences to all types of advertisers.
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