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November 1, 2008

2009 Outlook:
Local Interactive Advertising - Nov '08

Overview

2009 will be the first in many in which some components of interactive advertising show little or no growth, or may even decline. The changes foreseen are not cyclical, and show no sign of improving quickly, irrespective of upward movement in the nation’s economy.

Local ad spendFor local interactive media, the big slowdown has begun a year earlier than we anticipated. The spending levels by local advertisers – which have grown at a frenetic 47% this year – are expected to slow down to a relatively paltry 8% in 2009. Local media companies projecting double-digit and even triple-digit increases in their interactive budgets next year will have a very difficult time meeting those expectations – especially if they rely on banner ads.

Traditional forms of interactive advertising such as banner ads are quickly falling out of favor and site publishers should begin looking at expanding their ad arsenal with other offerings. Download the executive summary to read more.

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