CHANTILLY, Va., Sept. 14 /PRNewswire/ -- Overall, local advertising is growing slightly faster in 2010 compared with earlier estimates, according to BIA/Kelsey (www.bia.com and www.kelseygroup.com). In a preview of its forthcoming mid-year update to the BIA/Kelsey Annual U.S. Local Media Forecast (2009-2014), the firm's executives today told attendees of its Directional Media Strategies 2010 (DMS '10) conference in Dallas that local advertising will reach $133.3 billion by the end of 2010. This represents a 2.1 percent increase over 2009, compared with the firm's original estimate of a 0.95 percent decline.
Two media categories that have seen greater than expected growth in 2010 are television, up 13 percent over 2009, due to stronger political advertising, and online advertising, up 30.2 percent over 2009.
"After the challenges of 2009, it is good to see a faster rebound in 2010," said Neal Polachek, president, BIA/Kelsey. "Still, we don't expect to see meaningful recovery until 2012."
In the later years of the forecast period (2011-2014), growth rates are expected to be slightly slower, with the 2014 total local advertising estimate close to what was originally forecast.
BIA/Kelsey will provide the complete mid-year forecast update to clients of the company's Continuous Advisory Services later this month.
BIA/Kelsey's forecast presents one comprehensive and authoritative view of the local media landscape. It also serves as the foundation for the firm's newest offering, "Media Ad View: Category Report." Category Report provides a five-year projection of advertising revenues across 12 media categories (cable TV, direct mail, e-mail reputation and presence management, Internet Yellow Pages, magazines, mobile, newspapers, online, out-of-home, print Yellow Pages, radio and television) and the top 12 advertising categories in markets nationwide. The advertising categories -- automotive, educational, finance/insurance, general services, government/religion, health care, leisure/recreation, media, real estate, restaurants, retail and technology -- constitute nearly 95 percent of all local media advertising revenues. Markets are organized by the 362 Core Based Statistical Areas (CBSAs) or the 210 television markets.
"The strength and popularity of certain media over the next five years in the local media marketplace will dramatically affect the distribution of advertising spending for many of the advertising categories," said Tom Buono, CEO, BIA/Kelsey. "Players in the local market need to be aware of their media competition for each of these advertising categories."
Strong DMS '10 Suggests Industry Optimism
Local search and global Yellow Pages professionals are gathering in Dallas this week at BIA/Kelsey's DMS '10 (www.kelseygroup.com/dms2010) to discuss their latest developments and the outlook for local media and advertising. More than 400 executives representing nearly 200 companies from 23 countries are in attendance. Record turnout for this year's event suggests optimism among local media players in an industry that is experiencing significant transformation due to changing advertiser spending habits and consumer media consumption behaviors. The agenda features nearly 50 speakers, including headliners from AT&T Advertising Solutions, Closely, Google, LivingSocial, Microsoft Advertising, Yahoo, Yellow Pages Group (Canada) and Yext.
For information on BIA/Kelsey's Continuous Advisory Services and Media Ad View: Category Report, please contact Steve Passwaiter at firstname.lastname@example.org.
BIA/Kelsey advises companies in the local media space through consulting and valuation services, research, Continuous Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey's annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at www.bia.com and www.kelseygroup.com. The company's blogs are located at http://blog.bia.com/bia/ and http://blog.kelseygroup.com/, and it can be found on Twitter through http://twitter.com/BIAKelsey.