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December 1, 2009
Geotargeted Display Advertising Revenues to Grow from $897M in 2008 to $1.9B in 2013
The locally bought segment of the geotargeted display ad market will experience a compound annual growth rate of 66 percent from 2008 through 2013
CHANTILLY, Va.
(December
1,
2009)
–
The geotargeted display (or banner) advertising market will grow from $897 million in 2008 to $1.9 billion in 2013, representing a compound annual growth rate of 16 percent, according to BIA/Kelsey. The geotargeted segment of the display market will grow from 10.2 percent of all display ads sold in 2008 to 15 percent by 2013.
The locally bought portion of the market, which primarily comprises small and medium-sized businesses, will see the highest growth, at a CAGR of 66 percent. The segment will grow from $45 million in 2008 to $565 million by 2013. Further, the SMB market will swell from 5 percent to 30 percent of the total geotargeted market over the same period.
“The basis for growth of the geotargeted ad market is rooted in the economics of existing search resellers,” said Matt Booth, senior vice president and program director, Interactive Local Media, BIA/Kelsey. “The effective strategy for companies like AT&T, ReachLocal, Yodle and others will be to use geotargeting to increase margins by shifting spend from paid search to geodisplay. Simply, if a lead from search costs $30, these companies will shift to display where similar quality leads can be obtained for less. The display ad networks have so much excess inventory; they will run whatever impressions are needed to meet reseller targets.”
Key players in the local search and geotargeted display ad market will share the podium at BIA/Kelsey’s upcoming Interactive Local Media 2009 (ILM:09) conference, Dec. 9-11 in Los Angeles. A session titled “Making Money With/For SMBs” will examine where the SMB money is and sales strategies for reaching local businesses. Panelists for this session include Court Cunningham, CEO, Yodle; Kirsten Mangers, founder and CEO, WebVisible; and Andy Vogel, senior director of sales, Los Angeles Times Media Group.
ILM:09 is BIA/Kelsey’s annual conference devoted to digital media with a local focus. The theme for this year’s event is “Monetizing the Local Opportunity,” and the agenda will cover a range of important topics, including local social media, local search and mobile search. Conference sponsors include 3L System Group, Acxiom, AgendiZe, Akesios, Amdocs, Analog Analytics, AT&T Interactive, Cellcity, Exalead, Kenshoo, Local.com, Local Matters, Localeze, Lyris, Marchex, MatchCraft, MaxiPage, MediaTraks, Shooger and WebsPlanet. Association partners include Association of Directory Publishers (ADP), Great Outdoor Network (GON), International Classified Media Association (ICMA), National Association of Broadcasters (NAB) and Yellow Pages Association (YPA). Media partners include AIM Group, mobiThinking, TVover.net and YP Talk. For more information, visit
www.kelseygroup.com/ilm2009.
BIA/Kelsey’s geotargeted display advertising forecast is available to clients of the firm’s Interactive Local Media Continuous Advisory Service. Contact Michael Taylor at
mtaylor@kelseygroup.com for more information on BIA/Kelsey advisory services.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through Consulting and Valuation Services, Research, Continuous Advisory Services, and Conferences.
Since 1983 BIA/Kelsey has been a resource to the media,
mobile advertising, telecommunications, Yellow Pages and electronic
directories markets, as well as to government agencies, law firms
and investment companies looking to understand trends and revenue
drivers. BIA/Kelsey’s annual conferences draw executives from across
industries seeking expert guidance on how companies are finding
innovative ways to grow. Additional
information is available at
www.bia.com and
www.kelseygroup.com.
The company’s blogs are located at
http://blog.bia.com/bia/ and
http://blog.kelseygroup.com, and it can be found on Twitter
through
http://twitter.com/BIAKelsey.
For more information contact:
Eileen Pacheco
BIA/Kelsey
(781) 556-1026 | Eileen@tango-group.com
MacKenzie Lovings
BIA/Kelsey
(703) 802-2992 | mlovings@bia.com
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