New Media Expected to Salvage Slumping Ad Revenue

Local advertising spending on traditional media such as television, radio, print and outdoor is forecasted to drop to $144.4 billion by 2013, down from $155 billion in 2008, according to Adweek.

Traditional media outlets will need to branch out to offer new media, such as radio and TV internet advertising, the revenue from which is expected to climb to $1.9 billion by 2013, up from $805 million last year.

Another avenue advertisers are exploring is local mobile advertising, which the Kelsey Group predicts will generate $3.1 billion, up from $180 million in 2008. More than half of that revenue will come from local search. “Mobile gets you closer to the point of purchase because it goes with you to the store,” says Michael Boland, senior analyst at the Kelsey Group. “When we come out of this (economic slump), we’ll see a sudden interest and demand in mobile marketing.”

E-mail advertising is yet another growing trend as advertisers seek ways to more closely target their audience in a cost-effective way. Local email advertising is starting to replace direct mail and is expected to climb from $848 million in 2008 to $2 billion 2013.

There is no doubt that new media is here to stay and will continue to change the media buying landscape as it increases its share of the proverbial pie. What was once a complement to traditional media has become a necessary and substantial part of smart media plans.

--Tessa G.