The local media advertising market is set to grow at a 2.8% compound annual rate from 2012 through 2017, with traditional media gradually playing less of a role over the coming years, says BIA/Kelsey in its latest market forecast. The researchers estimate the market’s size to be $132.9 billion this year, only a slight rise from last year’s $132 billion, due to a contraction in traditional media revenues. Things are expected to pick up again next year, spurred by online and digital media growth and a steadier year on the traditional media side.
In fact, online and digital media revenues are projected to grow at a compound annual rate of 14% through 2017, compared to a -0.3% annual rate for traditional media. By 2017, online and digital media revenues are forecast to have doubled, from $23.1 billion last year to $44.5 billion, a more bullish estimate than the researchers’ previous one from March, which projected revenues to be $41.1 billion in 2017. Meanwhile, traditional media will accounting for $107 billion in revenues in 2017, down slightly from last year’s $108.9 billion. Read the rest at MarketingCharts.