Forecast: Local ad spending on Web & mobile to overtake newspapers by 2013

NetNewsCheck | Borrell Associates
Local advertisers will spend more on digital ads than in newspapers by 2013, and soon after the ad market will rapidly shift to mobile devices, according to the latest forecast from Borrell Associates. First the bad news for print: Local online ad spending is expected to rise 18 percent to $18.5 billion in 2012, on pace to pass newspaper spending by the following year. The good news is the total amount of local advertising will grow 5 percent in 2012, and traditional local media companies are capturing about half of all locally spent online advertising.

Even those with strong website advertising models should prepare for disruption in the next few years, as mobile ads will rapidly overtake desktop ads in local digital advertising. From the report’s executive summary:

By 2013 the proliferation of mobile devices — combined with local advertisers’ budding affair with mobile couponing, text messaging, social media and apps — is likely to cause a precipitous decline in ads served up on desktop computers. We’re forecasting that 88% of all local online advertising will be viewed on tablets, smart phones or GPS− enabled laptops by 2016.

Borrell Associates forecasts local digital advertising will keep growing rapidly, but most of it will move to mobile ads instead of desktop Web ads.

Related: Ad spending loses steam as U.S. economy sputters | Analyst: Big Media earnings to “decelerate sharply” in 2013 || Earlier: Local advertisers plan to spend more on social, mobile, less on print

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  • http://www.facebook.com/profile.php?id=765895284 Pineda Christia

    You are either mobile or you’re not. We like to think that paper will never go away but mobile will definitely surpass paper. Its faster and more convenient for all customer’s. Chris from http://www.gomo.io

  • http://twitter.com/jdellinger james dellinger

    Help me my phone ate my PC!

  • http://www.AdvertisingResults.com Leigh Ann Kristiansen

    I think everything cycles and my guess is, yes, mobile advertising will spike for awhile until advertisers see how truly effective or ineffective it is.  It hasn’t been that long since banner ads where the hot new way to advertise and now look at them.  They are overlooked.  Same with Google adwords and other text ads, most users ignore them and only look at their true search results.  In the long run, who knows where mobile advertising will end up.  It will be interesting to watch though!