2012 Local Online Advertising ConferenceMarch 21, 2012

Online AdvertisingTrends & Forecast

Advertising Trends

Local Advertising and Marketing Trends

Group to join:

Best Resource for your market: www.adspending.com

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+4.4%

3.1% CAGR

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© 2012 Borrell Associates Inc. All Rights Reserved.

“Advertising” is 1/3 of marketing $

2011

($ in Millions)

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© 2012 Borrell Associates Inc. All Rights Reserved.

Promotions is the big driver

($ in Millions)

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By 2016, 88% off all local online advertising will bedelivered on a mobile device.

Local Mobile Advertising

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Strong Growth Ahead for Local Online

© 2012 Borrell Associates Inc. All Rights Reserved.

$2.0 $2.1

$4.2 $5.5

$8.2

$12.9 $13.4 $13.6

$16.4

$19.9

$22.7

$24.8 $26.6

$27.9

$-

$30

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

$ in Billions

11.2% CAGR

+21.2%

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Change in Local Online Adv. Formats, 2016

© 2012 Borrell Associates Inc. All Rights Reserved.

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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.

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© 2012 Borrell Associates Inc. All Rights Reserved.

How $16b in local online was shared

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Big Difference: Online-Only Sales Reps

© 2012 Borrell Associates Inc. All Rights Reserved.

$146,500

$73,300

$185,900

$77,400

$195,000

$70,300

$208,200

$30,068

$64,387

All Data No Dedicated AEs

Dedicated AEs

Newsp-No Online AEs

Newsp-Yes Online AEs

TV-No Online AEs

TV-Yes Online AEs

Radio-No Online AEs

Radio-Yes Online AEs

Gross Online Revenue

per Sales Rep(Online $ divided by

all reps selling digital products.)

N = 271

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

Looking Forward

Need more information?

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