Digital advertising growth will offset a slowdown in local ad growth as marketers target consumers online, specifically mobile devices, according to a new BIA/Kelsey forecast.
By 2016, local online, interactive and digital advertising revenues—including mobile—will climb from $21.2 billion in 2011 to $38.5 billion, according to the forecast released today. This growth will significantly outpace overall media revenues, which are expected to grow from $111.5 billion to $112.7 billion during the same time period.
“We expect the overall local media market will grow a bit more slowly over the next five years,” Mark Fratrik, vp and chief economist for BIA/Kelsey, said in a statement.
The forecast put some of the blame for this restricted media spend on continued domestic and international economic strife, noting in particular troubles in Europe and continued high unemployment and a slowly recovering housing marketing in the U.S.
BIA/Kelsey, which twice a year readjusts its five-year outlook, will present more of its findings at the Interactive Local Media East Conference in Boston next week.