Local media companies looking for greener pastures have turned to Main Street shops, hoping to find gold. In our survey of 2,872 small and medium size businesses (SMBs), we found that they plan to increase their ad budgets 4.5% this year, but their online budgets 29%. The biggest gainers: email and social media advertising, including spending on their own websites. While 86% of SMBs reported having a website last year, that’s expected to go to 91% in 2011 – meaning there are very few left without a web presence.
Since 2001, Borrell Associates has been a pioneer in scrutinizing local media and the impact of disruptive technology on its ad revenues. In 2003, its landmark report on the subject, done in conjunction with then Harvard Assistant Professor Clark Gilbert, a protégé of Clay Christensen, was released. The report was a major wake-up call to the country’s local media giants. A 2007, condensed reprint of “Disruptive Technology and Local Media” is available for free.
The power of proximity-based, or location-based, advertising poses radical challenges to the mass media model of aggregating local audiences and selling them to local advertisers. Our latest report, “Proximity-Based Marketing: Mobile Devices Untether Advertising from Media,” examines the latest in a 15-page industry paper that gauges mobile proximity-based advertising at $200 million this year, swelling to $760 million in 2011 and springing to $6 billion by 2015.
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The oldest newspaper, radio, TV and “city.com” Web sites turned 14 years old this year. In that short time span they have evolved from being interesting experiments to become their parent organizations’ center of attention and financial saviors. Some of them now generate millions in revenue and significant profits, and have high potential for continued growth – begging the question of just how much these local Web sites might be worth.
The 2008 World Association of Newspapers revenue benchmarking survey includes data from newspapers in all major regions of the globe. It covers print and online revenues, the key verticals, and trends over the past three years. This unique resource is a special benefit provided to our subscribers. It is for internal use only and is not to be circulated outside your organization.
Print yellow page directories face the most uncertain future of all media. We’re estimating that the yellow pages industry will lose $39% of its in annual revenue over the next five years, amounting to a loss of $5 billion in annual revenue by 2013. Meanwhile, there is a simultaneous increase in the industry’s “addressable market” of search engine advertising and local online video, giving publishers a larger cache of advertising products to sell. Video shows the most promise, growing from a $1.4 billion category this year to $7.6 billion in 2013.
In 2007, businesses spent $806 billion to get the word out about their products, services and companies. Most of it, $483 billion went toward promotions – non-advertising marketing expenses that range from discounts, contests, coupons, rebates and sponsorships to white papers, public relations and viral marketing campaigns.
With a third of the working population reaching retirement age over the next decade we expect a huge demand to fill all types of jobs. Over the next four years, we expect total recruitment spending to increase 25%, from $58 billion in 2008 to $73 billion in 2012. The prime beneficiary will be online media. Online spending will increase 23.5% to a record high of over $11 billion.
Real estate advertising retrenched in 2007. While this $11 billion advertising category shows signs of contraction, the interesting story is what’s happening to the internal components. Our report assesses both current trends and future patterns of how agents and brokers will spend on traditional advertising, as well as what they’re investing in their own Web sites right now.