Williamsburg, Va.—Local online ad spending increased 20% last year compared with 2011, according to a new report by market research company Borrell Associates. An additional 31% growth is expected this year, the report found.
According to Borrell's “Local Online Media: 2012 Revenue Survey,” “pure-play” online media companies commanded 47.1% of the $18.5 billion spent on local online advertising. Traditional media companies are gaining some market share, however, with newspapers now accounting for 23.6% of online ad expenditures, followed by broadcast TV (11.9%) and directories (11.2%).
The Borrell study also highlighted a surge in charging for online content. About 350 newspapers had erected metered paywalls by the end of last year, indicating an increasing willingness by the public to pay for online content. The Borrell study is partly based on an online survey conducted January through March, with 197 respondents. Other data were derived from financial reports of 6,284 local online media outlets.