©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.
Thanks to an improving economy and new technology, local online ad revenues will reach $42.5 billion by 2015, according to new research from BIA/Kelsey. That would represent a nearly 100% increase over the $21.7 billion spent on local online advertising in 2010, and a compound annual growth rate of 14.4%.
The growth is contingent on an anticipated improvement in the U.S. economy, and a continued rise in overall local advertising, which BIA/Kelsey expects will hit $153.5 billion by 2015 — up from $136.3 billion in 2010.
As digital media — delivered to consumers through mobile, Internet or other channels — continues to gain traction with local advertisers, it will represent 23.6% of all local ad spending by 2015, according to Tom Buono, CEO of BIA/Kelsey.