Interactive Advertising Revenues to Reach US$147 Billion Globally by 2012, According to The Kelsey Group's Annual Forecast

    During the forecast period, global directional advertising revenues,
    comprising local search, print and Internet Yellow Pages, will grow to
    US$41.4 billion

    PRINCETON, N.J., Feb. 25 /CNW/ -- The global advertising market grew to
just over US$600 billion in 2007, according to The Kelsey Group, the leading
provider of research, data and strategic analysis on directional and
interactive local media. The firm expects global ad revenues to grow at a
compound annual growth rate (CAGR) of 2.7 percent and reach US$707 billion in
2012, propelled in large part by considerable growth in the interactive
    According to "The Kelsey Group's Annual Forecast (2007-2012): Outlook for
Directional and Interactive Advertising," interactive advertising revenues
will increase significantly from US$45 billion in 2007 to US$147 billion
globally in 2012, representing a 23.4 percent CAGR.
    "It's no surprise that the global advertising industry is experiencing a
full-scale shift to mixed-media platforms, with interactive driving a
significant share of overall industry growth," said Matt Booth, senior vice
president, Interactive Local Media, The Kelsey Group. "We see Internet
development-including increased subscriber/user access and broadband
penetration-as a driver of both interactive advertising revenue as well as
migration of traditional ad spending to new media platforms."
    Interactive advertising, which comprises search (including local search),
display advertising, classifieds and other interactive ad products, grew its
share of global advertising revenues from 6.1 percent in 2006 to 7.4 percent
in 2007. By 2012 Kelsey Group analysts expect the interactive share of global
ad spending will reach 21 percent.
    During the forecast period (2007-2012), the United States will see
interactive advertising revenues grow from US$22.5 billion to US$62.4 billion
(22.6 percent CAGR), with interactive revenues in Canada increasing from
US$1.3 billion to US$3.3 billion (21.3 percent CAGR).
    The Outlook for Directional Advertising
    The Kelsey Group forecasts directional advertising, which comprises local
search, print Yellow Pages and Internet Yellow Pages (IYP), will grow from
US$33.3 billion in 2007 to US$41.4 billion globally in 2012 (4.5 percent
CAGR). The global outlook for each of the three key segments of the
directional media market during the forecast period (2007-2012) is as follows:

    -- Local search revenues will grow from US$2.1 billion to US$6.6 billion
       (25.5 percent CAGR).

    -- Print Yellow Pages revenues will decline from US$27.5 billion to
       US$25.6 billion (-1.4 percent CAGR).

    -- IYP revenues will grow from US$3.7 billion to US$9.2 billion (20.1
       percent CAGR).
    "We expect printed directory revenues to decline in most global markets
over the forecast period, though print will remain the most important source
of leads for small businesses," said Charles Laughlin, senior vice president
and program director, The Kelsey Report(R), and managing editor, The Kelsey
Group. "For directory publishers to succeed, they will need to invest time,
energy and resources in both channels to minimize the decline in print and
maximize the opportunity online."
    During the forecast period (2007-2012), the United States will see
directional advertising revenues grow from US$16.4 billion to US$18.8 billion
(2.8 percent CAGR), with directional revenues in Canada increasing from US$1.4
billion to US$1.9 billion (5.8 percent CAGR). Canada is one of the markets in
which The Kelsey Group expects growth in the print Yellow Pages segment,
forecasting a 1.8 percent CAGR for print directories in Canada during the
forecast period.
    About The Kelsey Group's Annual Forecast
    The Kelsey Group has published a five-year forecast covering the broadly
defined directional and Internet media market annually since 2003. The firm
draws from its proprietary data, primarily the Local Commerce Monitor, User
View and Global View studies, as well as from company, industry and country
information in the public domain. Further, Kelsey Group analysts engage
clients and non-clients in numerous discussions about the direction and pace
of development in the local media marketplace. The Kelsey Group's Annual
Forecast is available to clients of the firm's continuous advisory services.
This forecast does not include mobile ad platforms. The Kelsey Group's mobile
forecast, released in September 2007, will be updated later in 2008. Visit for more information.
    About The Kelsey Group
    The Kelsey Group is the leading provider of research, data and strategic
analysis on directories, small-business advertising, online local media,
vertical market advertising and mobile advertising. Founded in 1986, the
company has built a reputation as the premier analyst firm covering the
directory publishing community and the emerging local search marketplace,
providing advisory services (The Kelsey Report(R), Interactive Local Media and
Marketplaces), publishing (Global Yellow Pages(TM)), consulting (more than 400
individual assignments) and conferences (71 events).

    Available Topic Expert(s): For information on the listed expert(s), click
appropriate link. Charles Laughlin Matthew

For further information:

For further information: Eileen Pacheco for The Kelsey Group, 
+1-781-556-1026, Web Site:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890