Retail and Technology Businesses Will Significantly Expand Online Ad Spend in San Diego Over Next Five Years

CHANTILLY, Va., Aug. 15, 2012 /PRNewswire/ -- According to BIA/Kelsey's Media Ad View reports, online ad revenues in key advertising categories in the San Diego local media market are slated for a significant increase over the next five years. The percentage of all advertising dollars spent in San Diego by retailers on online media will grow from 9.6 percent in 2011 to 13.7 percent in 2016. During the same period, in the same geographic market, spending by technology companies on online media will grow from 23.1 percent to 29.1 percent.

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Within this online spend, the biggest growth segment is local online video display, where ad revenues are slated to triple across a broad range of business groups, including restaurants, business schools, computer and management training, wireless telecommunication carriers and spectator sports.

"While traditional media still retains the largest portion of ad dollars, businesses are allocating an increasingly higher percentage of their budgets to digital media," said Mark Fratrik, vice president and chief economist, BIA/Kelsey, adviser to companies in the local media space. "When we built this year's Media Ad View forecasts, we included a break-out of the online share to provide the market with a way to thoroughly understand that slice of the advertising pie and the effect this particular growth will have on all media. As we can see in the San Diego market, growth in this area is causing some declines for classifieds and verticals and other forms of online display."

For example, BIA/Kelsey expects San Diego restaurants to increase their online video advertising spending from 4.0 percent of their total online ad spend last year to 13 percent in 2016. During the same period, business schools and training organizations will increase their online video ad spending from 7.9 percent to 21.6 percent of their total online ad spend and wireless telecommunication carriers will increase spending from 4.5 percent to 13.9 percent. Spectator sports are also expected to grow their spending from 4.2 percent to 13.6 percent. The trend in San Diego reflects what is occurring nationally, with the U.S. video ad market growing from $800 million in 2011 to $3.7 billion in 2016 (source: BIA/Kelsey's U.S. Local Media Forecast: Full Edition).

Commenting on the tremendous growth in local video ad display, Rick Ducey, managing director and program director of BIA/Kelsey's Video Local Media (VLM) program said, "TV remains one of the largest and most measured media in the world, yet the lack of accountability and engagement metrics makes assessing its ROI difficult. By contrast, we expect online video to gain popularity as the buying process becomes standardized and as more performance data is made available to advertisers through digital dashboards."

NOTE: Related charts are available online.

Retail and Technology Ad Spending Views:
http://www.biakelsey.com/images/SanDiegoRetailAdSpending.jpg

Detailed Categories Spending View:
http://www.biakelsey.com/images/SanDiegoSpendingView.jpg

Media Ad View Reports
Covering 12 media, 12 ad categories and 94 detailed business categories, BIA/Kelsey's Media Ad View reports track local advertising spending by media for the most recent year and five years out (2011-2016) for every local market. Markets are organized by the 362 Core Based Statistical Areas (CBSAs) or TV/Radio markets. The reports also examine the distribution of online ad share by segment (e.g., classified/verticals, search, video display and other display) to reveal the actual dollars being spent on online advertising in a local market by the most important business categories. For more information on BIA/Kelsey's Media Ad View reports, visit www.biakelsey.com/MAV, call (800) 331-5086 or email [email protected].

About BIA/Kelsey
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 http://www.biakelsey.com, on the company's Local Media Watch blog, Twitter (http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey).

SOURCE BIA/Kelsey