1. Selected Charts &
Information from
Borrell’s 11th Annual
Benchmarking Report
April 2013
© 2013 Borrell

2. Introduction
The following slides offer a summary of Borrell’s 11th Annual report,
Our Foundation: Research
“Benchmarking Local Online Media,” published on April 11, 2013. The
report contains analysis of revenues and expenses from 6,284 local
digital ventures in the U.S. and Canada, as well as a survey of digital
managers and online ad-spending data from 513 U.S. Digital
Marketing Regions (DMRs). The full report costs $995 and can be
downloaded at www.borrellassociates.com.
Illustrations and information in this
presentation may be used with attribution to Borrell Associates.
© 2013 Borrell

3. Growth Isn’t Abating for Local
Online Ad Spending
Our Foundation: Research
Local Businesses spent $18.5 billion on digital
advertising in 2012, 20.5% more than the previous year.
In 2013 the number is trending toward $24.3 billion, for
a 31.4% growth rate.
© 2013 Borrell

4. Local Online Advertising, 2004–2013
© 2013 Borrell
Source: © Borrell Associates, Inc. 2013

5. Who Gets All That Money?
Our Foundation: Research
Pureplay companies dominate, with 47% of market share.
That’s because there are so many of them: Craigslist, Weddings.com,
Autotrader.com Angie’s List, Yelp, Yext, ReachLocal, Monster,
Groupon, Marchex, Local.com…. Perhaps two dozen
getting small chunks of share from each market.
© 2013 Borrell

6. How $18.5 Billion Was Shared In 2012
© 2013 Borrell

7. Clear Pattern:
Local Businesses Prefer Digital
Our Foundation: Research
Consumers over ‘Readers’
The Top 20 list of companies in the local digital space is dominated
by those who have nothing but advertising as their content,
trumping traditional news & information sites. Even though
Gannett, a “news” company, tops the list, 60% of its digital
revenues are not from its news sites.
© 2013 Borrell

8. Top 20 Locally Based Competitors
*Some overlap in revenues occurs for CareerBuilder and Classified Ventures because both are
owned by Gannett, McClatchy and Tribune, which also appear on this list.
© 2013 Borrell
Source: SEC Documents, company statements, Borrell Associates Inc.; April 2013

9. Our Foundation: Research
Digital Growth For
Newspapers Is Low
© 2013 Borrell

10. Newspapers Online Rev. Growth, 2004–2013
© 2013 Borrell

11. ButOur Foundation: Research
They Average 50% More
Digital Revenue Than Local-
Market Competitors.
Why? Because they got in the game early, leveraged
large local ad-sales forces, and focused on classified
advertising, which migrated to the web fast.
© 2013 Borrell

12. Who’s Making What: Avg Per-site Revenue
© 2013 Borrell

13. Our Foundation: Research
TV Stations’ Digital Revenue
Continues to Grow – Maybe
As Much As 26% in 2013.
© 2013 Borrell

14. TV’s Local Online Ad Revenues
© 2013 Borrell

15. Our Foundation: Research
Local Radio’s Growing, Too...
But is Nowhere Near the
Billions that TV and Newspaper
Competitors Make.
© 2013 Borrell

16. Radio’s Local Online Ad Revenues, 2004–2013
© 2013 Borrell

17. Our Foundation: Centers
But the REAL Story Research
Around This Number:
+49%
© 2013 Borrell

18. Our Survey Found:
The average EBITDA* for traditional media company
Our Foundation: Research
digital ventures is 49%.
 They don’t account for rent, advertising or content
furnished by their host media company.
 Many pureplays (who do account for these
expenses) are making 20% to 30% margins.
 There’s a high level of confidence (96%) in the
accounting.
* Earnings Before Income Taxes, Depreciation and Amortization
© 2013 Borrell

19. Want More?
We can’t give everything away!
The report spans 45 pages and includes 37 charts and
graphics (we showed you just 7 of them here).
It also includes a list of all 513 U.S. Digital Marketing
Regions (DMRs) and how much businesses spend on
various forms of digital advertising in these locales.
For the full report visit www.borrellassociates.com
© 2013 Borrell

20. Talk to Us!
We’d love to hear from you.
Call us: 1-757-221-6641
Email us: info@borrellassociates.com
Follow us: @borrellassoc
Get head’s up on our research: www.borrellassociates.com
Join the LinkedIn debate: Local Advertising & Marketing Trends
Borrell Associates Inc.
1643 Merrimac Trail
Williamsburg, VA 23185
© 2013 Borrell