'Net Features : bia/kelsey

Digital Ad Revenues Highlight Local Media Forecast

Linc Wonham — Tue, 20 Mar 2012 16:00:00 GMT

According to the BIA/Kelsey’s newly released U.S. Local Media Forecast, local online/interactive/digital advertising revenues – including mobile – will climb from $21.2 billion in 2011 to $38.5 billion by 2016, representing a compound annual growth rate (CAGR) of 12.7 percent.

The growth in the digital segment will offset slower than anticipated growth in total local media advertising revenues.

A variety of factors including concerns about the European economic crisis, continued high unemployment and the housing market’s lack of recovery led to consumers and businesses “holding back” in their spending, the report concluded. The weaker-than-expected level of economic activity resulted in a lower level of local advertising revenues.

“In October, we projected the total of the U.S. local media market to be $135.9 billion in 2011,” says Mark Fratrik, vice president and chief economist, BIA/Kelsey. “But we now expect it to be $132.8 billion. Based on the changes in our estimates going forward, we expect the overall local media market will grow a bit more slowly over the next five years.”

BIA/Kelsey forecasts total local media ad revenues to grow from $132.8 billion in 2011 to $151.3 billion in 2016 for a CAGR of 2.6 percent. The firm expects traditional local media revenues to grow from $111.5 billion in 2011 to $112.7 billion in 2016, a 0.2-percent CAGR.

Predictably, traditional media revenues experience a bump during election years from political advertising, which appears as a drop in revenues in odd-numbered years. Despite the year-over-year political advertising seesaw effect, traditional media revenues remain remarkably steady throughout the forecast period.

More SMBs Getting Social with Their Local

Linc Wonham — Wed, 23 Nov 2011 01:00:00 GMT

Social media advertising continues to perplex some small business owners, but at least one highly respected research firm is predicting that will change dramatically over the next four years.

BIA Kelsey’s first-ever forecast of geo-targeted social media projects that the local segment of U.S. social media advertising revenues will grow from $400 million in 2010 to $2.3 billion in 2015, representing a compound annual growth rate (CAGR) of 33.3 percent. During the same forecast period, the firm expects overall U.S. social media ad revenues to grow from $2.1 billion in 2010 to $8.3 billion in 2015 – a CAGR of 25.7 percent.

“To date, local targeting has not been widely adopted by SMBs or national brands,” says Jed Williams, analyst and program director of BIA/Kelsey’s Social Local Media practice. “However, the paradigm is moving to performance, with Facebook and other networks focused on improving format, creative and targeting to boost rates and drive deeper ad engagement. We expect social local ad spend to steadily increase through 2015, especially as smaller businesses learn how to leverage targeting features to optimize results.”

The predominant social ad format continues to be display, spending on which will increase from $2.1 billion in 2010 to $7.7 billion in 2015 (24.2 percent CAGR), according to the forecast. BIA/Kelsey expects the social non-display segment to grow from $50 million in 2010 to $610 million in 2015 (51.6 percent CAGR).

BIA/Kelsey defines social media advertising as money spent on advertising formats across social networks. It does not encompass virtual goods and rewards, social gaming, social commerce or social marketing.

Locally Targeted Mobile Ad Spends Blowing Up

Linc Wonham — Thu, 23 Jun 2011 22:00:00 GMT

The new five-year outlook for U.S. mobile local advertising from BIA/Kelsey is, in a word, optimistic.

According to the research firm, total U.S. mobile ad spending will grow from $790 million in 2010 to $4 billion in 2015. During the same period, BIA/Kelsey projects the local portion of that total to increase from $404 million to $2.8 billion.

This makes locally targeted mobile ads 51 percent of overall U.S. mobile ad spending, growing to 70 percent by 2015. Consistent with other local media, BIA/Kelsey defines mobile local advertising as that which targets users in specific locations or contains location-specific calls to action.

Among the drivers of mobile ad revenue growth are smartphone penetration, mobile Web usage and related increases in ad inventory. BIA/Kelsey expects this to come about as large brand advertisers evolve their campaign objectives to the capabilities of the mobile device — most notably, location awareness.

The firm also sees mobile advertising moving down market to small and medium-sized businesses through a combination of local sales and self-serve tools. Exploding mobile usage, clearer ROI and a shorter purchase funnel will accelerate this demand within display, search and SMS advertising formats.

Local Search to Generate $8.2 Billion by 2015

Linc Wonham — Thu, 19 May 2011 15:00:00 GMT

Local search advertising revenues will increase from $5.1 billion in 2010 to $8.2 billion by 2015, according to local media analyst BIA/Kelsey.

That’s a compound annual growth rate of 10 percent that’s driven by the continuing increase in local search activity. By 2015, the firm expects that 30 percent of all search volume will be local in nature.

“Local search ad revenues hit an all-time high last year, driven primarily by better product integration across search engines, especially Google,” says Matt Booth, senior vice president and program director of BIA/Kelsey. “Revenues will continue to grow as better targeting, increased mobile usage and improving integration drive up local search activity.”

As smartphone and tablet use picked up in 2010, increasing amounts of consumers took to browsing the Web on their mobile devices, lending to a significant increase in local search. As these devices and mobile search habits embed themselves further into the mainstream, local search will continue to gain momentum – to the benefit of most local and regional brands.

According to comScore’s most recent Explicit Core Search Share Report, more than 16 billion such searches were queried in April 2011, with nearly 11 billion of those taking place on Google. Yahoo sites accounted for nearly 3 billion core searches and Microsoft had just over 2 billion.

BIA/Kelsey’s Interactive Local Media advisory service provides research, analysis and evaluation of quantitative and qualitative data as it relates to the locally focused digital media and advertising marketplace. Visit BIA/Kelsey to learn more about the Interactive Local Media advisory service or to gain access to the full report.

Bullish on Social Media Advertising

Mike Phillips — Tue, 03 May 2011 20:20:00 GMT

According to the "US Local Media Annual Forecast (2010-2015)", a report rom BIA/Kelsey, social media ad spend will more than double, to 21.9 percent of all digital ad spend by 2015. The report also predicts that Facebook display advertising "will reach a majority share by 2014-2015."

"The bottom line is if you can multitarget and you can target down at a really granular level, you have a better chance of knowing exactly who your message is reaching and how they're engaging with it," said BIA/Kelsey Analyst and Program Director Jed Williams.

The dollar amounts are nothing short of staggering. The report predicts soical ad spend will reach $8.3 billion by 2015, up from an already-impressive $2.1 billion in 2010.

Local Online Ad Revenues to Hit $42.5 Billion

Linc Wonham — Mon, 21 Mar 2011 20:00:00 GMT

The rise of social media, mobile commerce and the daily deals platform are driving significant growth in online local advertising, reports BIA/Kelsey’s U.S. Local Media Annual Forecast.

Online ad revenues are estimated to reach $42.5 billion by 2015, nearly twice the $21.7 billion reported in 2010. That increase represents a compound annual growth rate of 14.4 percent.

As local advertisers increasingly rely on the Web and mobile devices to reach consumers, BIA/Kelsey predicts that digital media will represent 23.6 percent of all local ad spending by 2015. Local advertising is defined in the report as local spending by small and medium-sized businesses and national and regional advertisers making local buys.

Key drivers of local online ad spending indicated in the forecast include the following:

•    The increased number of smartphones and tablets
•    Continued significant newspaper revenue erosion
•    The rapid growth of new formats such as social and mobile
•    Consumer spending on daily deals offers will grow to $3.9 billion by 2015

This year’s forecast presents a comprehensive view of the local media landscape, consisting of 12 key segments: newspapers, direct mail, television, radio, print Yellow Pages, out of home (non-digital), cable television, magazines, online/interactive, mobile, Internet Yellow Pages and other interactive revenues generated by traditional media players.

Overall, local ad spending is expected to reach $153.5 billion in 2015, up from $136.3 billion in 2010 and representing a 2.1 percent growth rate.