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February 15, 2006
Directional Media to Reach
$119.8 Billion Globally in 2010, According to The Kelsey Group
Local Search, Internet Yellow
Pages and Online Classifieds will help directional media gain share
relative to total advertising, both globally and within the U.S.
Princeton, NJ (February 15, 2006) --
Directional media (Yellow Pages, local search and classifieds advertising)
revenues will reach $119.8 billion globally in 2010, a 1.9 percent
increase over 2005 revenues of $109.2 billion, according to a new
forecast by The Kelsey Group.
The Kelsey Group defines “directional media”
as advertising that is delivered to potential buyers when they are
in the process of making a purchase or buying decision.
“We integrated classifieds advertising in
our forecast for the first time this year, as the lines between
Yellow Pages, local search and classifieds blur,” said Neal
Polachek, senior vice president, research and consulting, The Kelsey
Group. “We are seeing digital driving much of the overall
growth in directional media. This applies even in the classifieds
segment, which will see a slight decline in print revenues over
the forecast period, while online classifieds will grow to fill
in some of the gap.”
Directional media revenues are segmented as follows:
- Global print Yellow Pages revenues will increase 1.5 percent
from $26.3 billion in 2005 to $28.4 billion in 2010.
- Global local search revenues (Internet Yellow Pages, local
search and wireless) will increase 30.5 percent from $3.4 billion
in 2005 to $13 billion in 2010.
- Global classified advertising revenues will decrease 0.2 percent
from $79.5 billion in 2005 to $78.5 billion in 2010.
The forecast also features a view of the mix between
fixed and performance-based advertising models (e.g., regular monthly
fee vs. per action) and a view of the split within performance-based
models between clicks and calls. In the U.S. The Kelsey Group expects
performance-based models to significantly increase their share of
revenues during the forecast period, growing from 3 percent in 2005
to 26 percent by 2010 compared to fixed models, which will decrease
from 97 percent to 74 percent during the same period. Performance-based
phone leads or “pay-per-phone call” revenues are expected
to grow to $3.7 billion (in both online and offline media) by 2010.
Forecast details will be presented at The Kelsey
Group’s upcoming conference, “Drilling Down on Local:
Targeting the On-Demand Marketplace,” taking place March 26-28,
2006 at The Fairmont San Jose, San Jose, California. This event
will examine the fragmentation of traditional media audiences and
the emerging “on-demand” consumer paradigm that makes
it increasingly difficult to reach consumers with traditional marketing
methods. The conference will cover a range of topics, from local
search, pay-per-call and Internet Yellow Pages, to IPTV, VoIP and
wireless platforms. For more information visit www.kelseygroup.com/dd2006.
Forecast Dynamics
This forecast was informed by The Kelsey Group’s 2005 forecast,
guidance provided by public companies, interviews with executives
of key market organizations, overall advertising industry forecasts
and observations of strategies and tactics being implemented by
key industry players.
About The Kelsey Group
The Kelsey Group is the leading provider of research, data and strategic
analysis on directories, small-business advertising and online local
media. Founded in 1986, the company has built a reputation as the
premier analyst firm covering the directory publishing community
and the emerging local search marketplace, providing advisory services
(The Kelsey Report® and Interactive Local Media), publishing
(Global Yellow Pages™ and Local Media Journal™), consulting
(over 300 individual assignments) and conferences (more than 60
events).
For more information contact:
Eileen Pacheco
(781) 556-1026
email |
