Local online and mobile advertising revenues are forecast to reach $38.5 billion by 2016, up from an estimated $21.2 billion in 2011, a compound annual growth rate (CAGR) of 12.7%, according to BIA/Kelsey's US Local Media Annual Forecast.
Growth in the digital segment is expected to offset slower than anticipated growth in total local media advertising revenues.
Below, other findings from BIA/Kelsey's five-year ad spending forecast.
Growth in local advertising will likely trail that of the overall economy: Total local advertising is forecast to grow at a 2.6% CAGR over the next five years, from an estimated 132.8 billion in 2011, to $151.3 billion by 2016.
Traditional ad revenues are projected to reach $112.7 billion by 2016, declining at 0.2% CAGR over the forecast period.
Shift to Online Marketing
Digital media continues to constitute a growing proportion of marketing budgets.