Chantilly, Va.—Local online ad revenue in the U.S. is expected to grow to $38.1 billion in 2016 from $21.2 billion in 2011, a 12.4% increase in compound annual growth rate (CAGR), according to a study by BIA/Kelsey.
BIA/Kelsey projected that local search will grow faster than the overall search market, to $10.2 billion in 2016 from $5.7 billion in 2011 (+12.1% CAGR), while the U.S. local display market will outpace the overall display market, growing to $5.1 billion in 2016 from $2.4 billion in 2011 (+16.2% CAGR).
“Overall, we remain very bullish on interactive spending, and especially on new mobile monetization methods like point-of-sale offerings that are showing performance improvements,” said Matt Booth, chief strategy officer and program director, interactive local media at BIA/Kelsey, in a statement. “In fact, we expect mobile growth to offset some of the slowing in core search and display in the outer years of the forecast.”
BIA/Kelsey forecast total U.S. local media advertising revenue to reach $147.1 billion by 2016.