Forecast: Local Media Revenue To Reach $139.3B In 2015

Mark Fratrick

In its new U.S. Local Media Forecast 2015, BIA/Kelsey forecasts total local media revenues to reach $139.3 billion in 2015, up from $137 billion this year, representing a growth rate of 1.6 percent.

BIA/Kelsey is presenting highlights from the forecast today at its LEADING IN LOCAL: SMB Digital Marketing conference, which is taking place through Wednesday, in New Orleans.

• Online/digital will account for more than one-quarter (25.2 percent) of total local media revenues in 2015. Revenues for online/digital are expected to grow from $31 billion in 2014 to $35 billion in 2015, representing a 13.1 percent growth rate.
• Mobile local and local social are among the categories within the online/digital segment that are seeing strong growth. Forecasts for several online/digital categories include:
• Mobile local ad revenues will grow from $4.3 billion in 2014 to $6.6 billion in 2015
• Local social media revenues will grow from $2.5 billion in 2014 to $3.6 billion in 2015  
• Local search revenues will grow from $7.1 billion in 2014 to $7.2 billion in 2015
• Local display revenues will grow from $4.3 billion in 2014 to $4.9 billion in 2015
• Local online video revenues will grow from $2.3 billion in 2014 to $3.0 billion in 2015

​"We expect the pace of growth in the overall local advertising marketplace to moderate through 2019, resulting in a three percent compound annual growth rate," said Mark Fratrik, chief economist, BIA/Kelsey. "Growth in online/digital advertising revenues will remain strong, with a 12.2 percent CAGR through 2019, compared with essentially flat revenues for traditional advertising (-0.5 percent CAGR) during the same period."

BIA/Kelsey defines the local media advertising marketplace as those media that provide local audiences to all types of advertisers.