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Forecast: Traditional Ad Revenue to Stagnate; Online Spending to Double Link no longer live. Text follows: Chantilly, Va. -- Though local advertising is expected to grow at only a modest rate over the next five years, the amount spent online is expected to more than double, according to a new survey by Chantilly-based BIA/Kelsey. The firm forecasts that spending on traditional media will decline from $115 billion to $108.2 billion by 2014. At the same time, however, spending on interactive media is projected to grow from $15.2 billion to $36.7 billion. "Even with improvements in the overall economy, we do not anticipate a rapid recovery among traditional media over the forecast period, because we believe the structural change in the local media industry has accelerated," said Neal Polachek, the president of BIA/Kelsey. Total local ad spending is expected to increase just 2.2% annually during the period, hurt by larger than previously forecast declines in newspapers and direct mail.
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