Borrell has released its 2012 outlook report, which contains a local online ads forecast. The report says that local online ads (including mobile) will be worth $18.5 billion next year. Of that projection, $4.3 billion is mobile.
Perhaps most interesting about the report is that Borrell argues traditional media sales channels are winning the war for local ad dollars, including digital ads:
[Traditional media companies] already control 92% of all local ad dollars including half of all locally spent online advertising. For the past two years, traditional media companies have been quietly staffing up their online sales forces, stealing share from Internet pureplay companies. We foresee that trend continuing in 2012 as pureplay companies lose 1.6 points of share while local TV stations gain 1.6 points, radio 1 point and newspapers 0.8 of a point.
This comes a year or so after Borrell said that pure-plays were winning. However in the interim apparently the fortunes of traditional media companies have reversed.
The paradox (not discussed in the report) is that traditional media publications, products and sites continue to lose traffic and share overall vs. search engines, “portals” and other online publications. However the local media salesforce assets are beating out local digital “pure plays,” even as those pure plays capture more consumer eyeballs.
This is a vindication it would seem of the “one stop shop” model. It also reflects the existing local advertiser relationship advantage enjoyed by traditional media publishers.
In 2012, according to the report, traditional media companies will control about 55% of local online ad dollars. Here’s Borrell’s breakdown of the distribution:
Borrell also argues that online pure plays would see steeper share loses if they weren’t benefiting from the traditional media sales efforts.
November 17th, 2011 at 7:09 pm
Examples of top gainers ?
November 17th, 2011 at 7:19 pm
I’ll have to check
November 17th, 2011 at 7:19 pm
Amazing how much the moble online adds are growing. I want a peice of that pie!