According to Borrell, digital advertising at the local level will grow 42% this year. At that rate it would account for $2 out of every $5 spent by local advertisers. It’s grown to the level of dominance that newspapers enjoyed for years, until the late 1990s.
Four types of companies are forming:
- Traditional media companies stuck in the analog world, selling a little digital stuff because it’s easy, but not really believing there’s good money in it
- Traditional media companies that are more excited about the prospects but still reticent (or unable) to invest more in order to grow quickly;
- Traditional media companies that have seen the light and are determined to grow again, investing heavily in digital by hiring people or acquiring companies.
- Internet “pureplays,” and there are thousands of them. True to predictions, they have gobbled up share at the local level. In 2015, these independent companies will account for nearly three-fourths of all digital advertising, elbowing out local-media competitors who have tried for two decades to use their existing sales forces to also sell digital advertising.
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The report found that only four traditional radio companies grew more than the industry average, including Cumulus, Univision, Salem Communications and Pandora.