2012 Local Online Advertising ConferenceMarch 21, 2012
Online AdvertisingTrends & Forecast
Advertising Trends
Local Advertising and Marketing Trends
Group to join:
Best Resource for your market: www.adspending.com
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+4.4%
3.1% CAGR
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© 2012 Borrell Associates Inc. All Rights Reserved.
“Advertising” is 1/3 of marketing $
2011
($ in Millions)
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© 2012 Borrell Associates Inc. All Rights Reserved.
Promotions is the big driver
($ in Millions)
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By 2016, 88% off all local online advertising will bedelivered on a mobile device.
Local Mobile Advertising
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Strong Growth Ahead for Local Online
© 2012 Borrell Associates Inc. All Rights Reserved.
$2.0 $2.1
$4.2 $5.5
$8.2
$12.9 $13.4 $13.6
$16.4
$19.9
$22.7
$24.8 $26.6
$27.9
$-
$30
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012f 2013f 2014f 2015f 2016f
$ in Billions
11.2% CAGR
+21.2%
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Change in Local Online Adv. Formats, 2016
© 2012 Borrell Associates Inc. All Rights Reserved.
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Weird Little Fact
In 2011, traditional local media companies controlled 91% of all advertising, including half of all locally spent online advertising.
Source: Borrell Associates Inc.
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© 2012 Borrell Associates Inc. All Rights Reserved.
How $16b in local online was shared
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Big Difference: Online-Only Sales Reps
© 2012 Borrell Associates Inc. All Rights Reserved.
$146,500
$73,300
$185,900
$77,400
$195,000
$70,300
$208,200
$30,068
$64,387
All Data No Dedicated AEs
Dedicated AEs
Newsp-No Online AEs
Newsp-Yes Online AEs
TV-No Online AEs
TV-Yes Online AEs
Radio-No Online AEs
Radio-Yes Online AEs
Gross Online Revenue
per Sales Rep(Online $ divided by
all reps selling digital products.)
N = 271
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Micro Trends Bloodletting is over for (most) newspapers Yellow Pages face slow-motion demise Direct Mail entering the “perfect storm” A new disruptor is about to wreak havoc ‘Medium’ companies shrinking ‘Media’ company morphing and surviving
Looking Forward
Need more information?
Borrell Associates Inc.Phone: 757-221-6641Email: [email protected]: goborrell