Local online ad spending, which Borrell Associates had previously expected to keep on chugging away before leveling off in 2012, is set for “little or no growth” in 2008, a result of the financial meltdown, the local media researcher says. Putting its numbers in context, Borrell says that offline media will drop 1.4 percent next year, while interactive media increases 7.2 percent. The report follows several other industry analysts who have steadily downgraded expectations for general online ad spending this year.
The deceleration of local interactive spending — which was viewed as the major growth engine of online advertising as the whole category began slowing last year — is pretty stark. Borrell’s report says that local online ad spend has grown at a frenetic 47 percent this year