Chantilly, Va.—Locally oriented advertising will not be as robust by year-end as earlier predicted by BIA/Kelsey; but the media research company sees spending on local social ads continuing to exhibit strong growth.
According to the company's “U.S. Local Media Forecast, 2010-2015, Fall Update,”
a weaker-than-expected economy has depressed local ad expenditures, now expected to reach $135.9 billion, down slightly from the $136.2 billion the company predicted in an earlier report. Growth through 2015 will be modest at 1.7% annually, BIA/Kelsey said.
However, local ads placed on social networking sites continue to grow strongly. From the approximately $700 million spent on locally oriented social ads in 2011, BIA/Kelsey sees this growing to $2.3 billion by 2015, an annual growth rate of 33.3%.