Mark Fratrik and Tom Buono, BIA/Kelsey executives who spoke at the firm’s Interactive Local Media East conference at the Boston Marriott Copley Place, predicted that online advertising revenue will rise to $42 billion by 2015, with a continued shift towards local-focused ads and daily deals. BIA/Kelsey is a respected authority on local advertising, and gathered top representatives of interactive local media, local search, mobile local and social local media to examine the latest business models, technology and revenue opportunities in a market where local is currently at the leading edge.
The firm’s research asserted that online local advertising comprised 14.1 percent of all spending by SMBs, and that 2011online local ad spendings could reach 16.2 percent. Businesses have already begun to shift their ad budgets from strategies like direct mail and television ads to daily deals like those offered on the immensely popular Groupon.
“New media changes every day because of healthy competition from emerging entries,” Fratrik said.
As firms like Yahoo, Gannett , Living Social, and Cheap Local Deals explore local daily deals offerings, BIA/Kelsey forecasts the daily deals space will generate $3.9 billion in consumer spending by 2015.
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