Our friends at Jacobs Media have been asking "WTDA" (Whats The Digital Application) for quite some time, it has become their mantra working with Radio properties trying to expand their audience and revenues with Interactive or Digital applications. BIA and The Kelsey Group released "U.S. Local Ad Market to Contract Through 2013, Despite Gains in Digital Segment" which reinforces the need to diversify your property with Interactive or Digital strategies....
"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. A small number of traditional media will rebound with a revived economy beginning in 2011, though most traditional media will continue to decline, albeit at a slower pace.
?By the end of the forecast period, the overall size of the local advertising market will be considerably smaller than it was at the end of 2008,? said Tom Buono, president and CEO, BIA Advisory Services. ?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 in order to drive business over the next decade.?
|
US Local Ad Spending Forecast (Billion Dollars) |
|
|
Digital Media |
Traditional Media |
|
Year |
Spend |
Share |
Spend |
Share |
|
2008 |
$14.0 |
9.0% |
$141.3 |
91.0% |
|
2009 |
16.3 |
11.5 |
125.1 |
88.5 |
|
2010 |
18.9 |
13.9 |
116.9 |
86.1 |
|
2011 |
22.9 |
16.7 |
114.0 |
83.3 |
|
2012 |
27.2 |
19.3 |
80.7 |
113.6 |
|
2013 |
32.1 |
22.2 |
77.8 |
112.4 |
|
Source: Kelsey Group (Mktg Charts), February 2009 |
I really despise negative forcasts as sometimes we just give up and accept the results of what some expert or report is telling us. I don't know the future of advertising spend but I do know that any property can help itself by looking at the hot buttons that their clients have and providing solutions to generate long-term revenue for them. By adopting strategies that have long-term impact with our clients we can negate the experts or reports as we achieve returns that generate future business.