Digital local advertising forecast to grow 42 per cent this year
At that rate, as forecast for 2015, it would account for US$2 out of every $5 spent by local advertisers. It’s grown to the level of dominance that newspapers enjoyed for years, until the late 1990s.
The report identifies the different types of companies that are forming:
- Traditional media companies stuck in the analog world, selling a little digital stuff because it’s easy, but not really believing there’s good money in it
- Traditional media companies that are more excited about the prospects but still reticent (or unable) to invest more in order to grow quickly
- Traditional media companies that have seen the light and are determined to grow again, investing heavily in digital by hiring people or acquiring companies
- Plus the fourth type: internet “pureplays,” and there are thousands of them.
According to MediaPost, true to predictions, this fourth type have gobbled up share at the local level. In 2015, these independent companies will account for nearly three-fourths of all digital advertising, elbowing out local-media competitors who have tried for two decades to use their existing sales forces to also sell digital advertising.
This report, a digital advertising outlook for 2015, examines the companies that are apparently doing the best at morphing, and looks at where all the growth is.