Local Advertising & Local Online Forecasts for U.S. to 2016

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The folllowing presentation was given by Gordon Borrell, CEO of Borrell Associates, at the opening of the 2012 Local Online Advertising Conference in New York on March 21, 2012

Negócios Notícias e política

Online Advertising
Trends & Forecast
March 21, 2012 2012 Local Online Advertising Conference

Advertising Trends

Group to join:
Local Advertising and Marketing Trends

Best Resource for your market: www.adspending.com

© 2012 Borrell Associates Inc. All Rights Reserved.
www.borrellassociates.com

+4.4%

3.1% CAGR

© 2012 Borrell Associates Inc. All Rights Reserved.
www.borrellassociates.com

“Advertising” is 1/3 of marketing $
2011

($ in Millions)
www.borrellassociates.com

© 2012 Borrell Associates Inc. All Rights Reserved.

Promotions is the big driver
www.borrellassociates.com

($ in Millions)

© 2012 Borrell Associates Inc. All Rights Reserved.

Local Mobile Advertising
By 2016, 88% off all local
online advertising will be
delivered on a mobile
device.
All Rights Reserved.
© 2012 Borrell Associates Inc.
www.borrellassociates.com

Strong Growth Ahead for Local Online

$30
$27.9
$26.6
$ in Billions
$24.8
$22.7
+21.2%
$19.9
www.borrellassociates.com

$16.4
11.2% CAGR
$13.4 $13.6
$12.9

$8.2

$5.5
$4.2
$2.0 $2.1

$-
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012f 2013f 2014f 2015f 2016f

© 2012 Borrell Associates Inc. All Rights Reserved.

Change in Local Online Adv. Formats, 2016
www.borrellassociates.com

© 2012 Borrell Associates Inc. All Rights Reserved.

Weird Little Fact

In 2011, traditional local media
companies controlled 91% of all
advertising, including half of all locally
spent online advertising.

Source: Borrell Associates Inc.

How $16b in local online was shared
www.borrellassociates.com

© 2012 Borrell Associates Inc. All Rights Reserved.

Big Difference: Online-Only Sales Reps

Gross
Online Revenue
per Sales Rep $208,200
(Online $ divided by
$195,000
all reps selling digital
$185,900
products.)

$146,500
www.borrellassociates.com

$77,400
$73,300 $70,300
$64,387

$30,068

All Data No Dedicated Dedicated Newsp-No Newsp-Yes TV-No Online TV-Yes Radio-No Radio-Yes
AEs AEs Online AEs Online AEs AEs Online AEs Online AEs Online AEs
N = 271

© 2012 Borrell Associates Inc. All Rights Reserved.

Looking Forward

Micro Trends (most) newspapers
 Bloodletting is over for
 Yellow Pages face slow-motion demise
 Direct Mail entering the “perfect storm”
www.borrellassociates.com

 A new disruptor is about to wreak havoc
 ‘Medium’ companies shrinking
 ‘Media’ company morphing and surviving

Need more information?

Borrell Associates Inc.
Phone: 757-221-6641
Email: info@borrellassociates.com
Twitter: goborrell

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Local Advertising & Local Online Forecasts for U.S. to 2016

1. Online Advertising Trends & Forecast March 21, 2012 2012 Local Online Advertising Conference

2. Advertising Trends Group to join: Local Advertising and Marketing Trends Best Resource for your market: www.adspending.com

9. Strong Growth Ahead for Local Online $30 $27.9 $26.6 $ in Billions $24.8 $22.7 +21.2% $19.9 www.borrellassociates.com $16.4 11.2% CAGR $13.4 $13.6 $12.9 $8.2 $5.5 $4.2 $2.0 $2.1 $- 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012f 2013f 2014f 2015f 2016f © 2012 Borrell Associates Inc. All Rights Reserved.

13. Weird Little Fact In 2011, traditional local media companies controlled 91% of all advertising, including half of all locally spent online advertising. Source: Borrell Associates Inc.

15. www.borrellassociates.com

16. Big Difference: Online-Only Sales Reps Gross Online Revenue per Sales Rep $208,200 (Online $ divided by $195,000 all reps selling digital $185,900 products.) $146,500 www.borrellassociates.com $77,400 $73,300 $70,300 $64,387 $30,068 All Data No Dedicated Dedicated Newsp-No Newsp-Yes TV-No Online TV-Yes Radio-No Radio-Yes AEs AEs Online AEs Online AEs AEs Online AEs Online AEs Online AEs N = 271 © 2012 Borrell Associates Inc. All Rights Reserved.

17. Looking Forward Micro Trends (most) newspapers  Bloodletting is over for  Yellow Pages face slow-motion demise  Direct Mail entering the “perfect storm” www.borrellassociates.com  A new disruptor is about to wreak havoc  ‘Medium’ companies shrinking  ‘Media’ company morphing and surviving

18. Need more information? Borrell Associates Inc. Phone: 757-221-6641 Email: info@borrellassociates.com Twitter: goborrell

Local Advertising & Local Online Forecasts for U.S. to 2016

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