Slower growth seen for local online ads

'Legacy' media companies gain market share

Local advertisers are expected to increase their online ad spending by just 6 percent this year, a sharp pullback from growth of 46 percent in 2008, Borrell Associates Inc. said in an annual survey of media companies.

Borrell is forecasting a rebound in 2010, with growth of 13 percent, and said quicker improvement in the economy could lead to more growth than currently forecast for this year. The long-term forecast calls for local online ad spending to peak at $15.9 billion in 2011 before contracting the following two years to $15.3 billion.