NEW YORK, NY – According to the U.S. Local Media Annual Forecast, 2008-2013, by BIA Advisory Services and its Kelsey Group, current and foreseeable economic conditions will reduce overall local advertising spending through 2013. BIA/Kelsey forecasts U.S. local advertising revenues to decline from $155.3 billion in 2008 to $144.4 billion in 2013, representing a negative 1.4 percent compound annual growth rate.

Only the local interactive segment will show growth throughout the forecast period. All other local media will experience marginal to rapid declines in the next 18 to 36 months, says the report. A small number of traditional media will rebound with a revived economy beginning in 2011, though most traditional media will continue to decline at a slower pace.

According to the forecast, the interactive segment (mobile, Internet Yellow Pages, local search, online verticals and classifieds, voice search, e-mail marketing and other interactive revenues generated by traditional media players) will grow from $14 billion in 2008 to $32.1 billion in 2013. The traditional segment (newspapers, direct mail, television, radio, print Yellow Pages, non-digital out of home, cable TV and magazines) will decrease from $141.3 billion in 2008 to $112.4 billion in 2013.

Tom Buono, president and CEO, BIA Advisory Services, says "... As the shift to online accelerates, and the demand for accountability metrics grows, there is an increased urgency for traditional media companies to develop and embrace new business models that incorporate digital strategies... to drive business..."

Neal Polachek, CEO, The Kelsey Group, concludes "... the share shift... could actually be more pronounced... successful integration will require considerable attention to business models, product innovation and sales channel evolution."

Copyright 2009 MediaPost Communications. All rights reserved. From http://www.mediapost.com.
To view the Internet Travel Monitor Archive, click http://www.tripinfo.com/ITM/index.html.