Local US Interactive Advertising Slows Down
US local interactive advertising is expected to show little or no growth, or a decline in 2009, according to Borrell’s new ‘2009 Outlook: Big slowdown begins for local interactive advertising’ report.
The report shows that spending levels by local US advertisers, which have grown at 47% this year, is expected to slow down to a relatively poor 8% in 2009.
Borrell says local media companies projecting double and triple-digit increases in their interactive budgets next year “will have a very difficult time meeting those expectations”.
The report also suggests that traditional forms of interactive advertising, such as banner ads, are quickly losing popularity.
Next year is predicted to be the first year in many in which some components of interactive advertising remain static or see a downturn and may struggle to improve despite the upward movement in the US economy.
Research from July before the credit crunch took hold, Magna predicted a more positive outlook for the overall local advertising market in the US (see Global Adspend To Grow 4.4% This Year).