Local Online Ad Rev To Grow 31% In 2013
Local ad spending is expected to grow 8.2% to $96.2 billion in 2013, with online making up the lion’s share of the total, according to a new report coming out tomorrow from Borrell Associates.
According to the report, local online advertising is predicted to rise from $18.7 billion in 2012 to $24.5 billion in 2013, an increase of 31%. Online is expected to remain the top category for local advertising, beating out newspapers, whose local ad revenue will remain relatively flat — $17.83 billion in 2012 to $17. 95 billion in 2013 — while its share of the pie falls nearly 2% to 18.6%.
Local TV stations are expected to see revenue rise slightly from $11 billion to $11.9 billion, with its share remaining flat at 12.3%.
Borrell predicted that local radio would see a 5.9% drop in local ad revenue to $11 billion for the year. Local magazines, shoppers and alternative newsweeklies are also expected to see a decline, dropping 2.5% to $7.7 billion.
Most of 2013’s online ad growth is expected to come from newcomers and high-rollers, according to Borrell. Only 20% of small businesses surveyed said they planned to increase their online advertising, while 52% said they expected to spend the same. SMBs also continue to show high interest in mobile, the firm found, with 83% who have used mobile campaigns likely to continue.