Milestone: Local online tops traditional.

For the first time, digital media use exceeds that of radio, newspaper, television and other traditional media among small and medium-sized businesses.  BIA/Kelsey’s Local Commerce Monitor study shows 77% of local businesses are doing some form of digital marketing.  At the same time, traditional media usage slips to 69%.

Kelsey Group director of research Steve Marshall has been tracing the trend of digital replacing traditional media and the latest data is an “indicator of the broad shift to online platforms.”  The firm says nearly four of every ten advertising and promotional dollars goes to digital, doubling last year’s level. Ability to track lead sources by counting clicks or emails is the biggest motivator.

The shift comes as local advertisers hold their marketing dollars tighter in hand. According to the study, they decreased spending on advertising and promotion over the last year by 24% from $2.7 billion to $2.1 billion.

BIA chief economist Mark Fratrik says, “There is some promise for radio and television stations." He says many companies are already selling their station site as well as new city-based online destinations using their existing brand names and ability to cross-promote.