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Forecast: Local Online Ad Spending Will Be Up 18 Percent Next Year

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Local online researcher Borrell Associates is revising its forecast upwards for how much advertisers will spend on local online ads next year; the company says it now expects local online ad spending to jump 18 percent in 2011 to $16.1 billion—a figure it had previously said the market would achieve in 2012.

Overall, Borrell Associates expects online ad spending to increase by 14 percent to $51.9 billion in 2011—an increase it says will be fueled by growth in local, “anything targeted,” and “everything involving social media.” To put both figures in perspective, Borell Associates says both local and overall online ad spending is likely to be up only about “1-2%” this year.

SEE ALSO: BIA/Kelsey: Local Online Ad Growth Expected To Be Slow, But Steady

The bullish digital forecasts are in line with what other researchers are expecting for 2011. ZenithOptimedia, for instance, is expecting a 16.1 percent year-over-year increase in online advertising. And, BIA/Kelsey, another local media specialist, said earlier this year that it expected local online ad spending would increase at a 19.3 percent compound annual growth rate over the next four years.

In laying out its 2011 forecast, Borrell points to several local markets, which it says have the “top growth rates” for local online advertising in the U.S.—information likely useful for the growing number of local news startups.

They are: “Monroe, LA – El Dorado, AR,” “Albany – Schenectady, NY,” and “Des Moines – Ames, IA.” The slowest growth? “Lafayette, IN,” “Fairbanks, AK,” and “Ft. Smith – Fayetteville – Springdale – Rogers, AR.” Borrell says it derives those names from “internet usage and the adoption rates by local smaller businesses (of online ads).”

Aug 24, 2010 2:00 PM ET

Forecast 2011


Posted In: Advertising, Local, Research & Metrics, Metrics, Research

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