As expected, the trend for online advertising is continuing but this time it is streamed audio that is showing tremendous potential as we look forward to 2012....
"The greatest share of streaming audio revenue in 2011 belongs to pure plays; those publishers who have no affiliation with traditional media. This year, pure plays will capture one out of every three online audio streaming dollars (66.5%). Radio's share is 24.7%. Interestingly, newspapers' share of online audio streaming is 7.2%. Borrell Associates' 26-page report, Budgeting for 2012: Local Online Advertising Forecasts and Key Growth Opportunities, reveals that after two years of fairly flat revenues, this advertising segment is entering another rapid-growth phase. In fact, it's two years from toppling the age-old kingpin of local advertising: newspapers. But don't count newspapers or any other traditional media out. Legacy local media companies still control 92% of all advertising, including half of all locally spent online advertising. And their share is of online is starting to grow, at the expense of local pureplay Internet companies. Borrell Associates are forecasting 18% overall growth as local online advertising goes from $15.7 billion this year to $18.5 billion.
In addition, a subset of online, mobile advertising (smartphones and tablets), will push the total expenditure to more than $26 billion by 2016.
In 2012, pure plays will continue to capture the largest share of online audio streaming revenues, but radio's share will grow slightly to 26.7%.
Overall, Borrell is projecting Local Online Advertising revenues in 2012 to increase 18% over 2011 to $18.5 billion and radios share will grow from 1.9% to 2.9%"