WildBlueSkies – Trends and strategies in Digital Media

A new report from Borrell Associates, What Local Media Web Sites Earn: 2008 Survey, shows local online ad spending rising at a 50% rate, to exceed $13 billion this year, compared to 2007 revenues of $8.7 billion (I think this refers to the US market). This is based on a survey of over 3,000 local media properties. The report predicts a double-digit growth over the next year and a half with growth rates expected to taper into the single digits by 2012.
Websites have the sluggish economy to thank for the expected increase – local advertisers want more cost efficient alternatives to traditional media buys, and they’re finding them online.
Other findings:

• Newspaper publishers have a head start on other online media entries, with newspaper sites grabbing over $2 billion in local Web ad revenue in 2007, more than all other local online media companies combined.
• While radio revenues rose about 50% from $125 million in ‘06 to $189 million in ‘07, Borrell anticipates the growth to slow to about 35% this year.
• Ad spending on local TV sites is expected to go beyond $1 billion this year. In 2007, total online television revenues grew to $772 million, a 72% leap over the previous year.
• Internet revenues for directories publishers will reach $1.2 billion in 2008, up from $993 million this year. [Via, Image courtesy Borrell]

Related posts:

1. Global ICT Spending To Exceed $3.7 Trillion In 2008
2. Search Advertising To Reach $30.5 Billion In 2008
3. Local Advertising And Traditional Media
4. European Online Ad Grows To $17.4 Billion In 2007
5. U.S. Interactive Ad Revenues to Hit $62.4 Billion by 2012

Filed under: Business, Statistics