According to a BIA Advisory Services forecast, local advertising income for media will decline 1.4 percent annually from US$155.3 billion in 2008 to $144.4 billion in 2013, Advertising Age reported Thursday. A specialist in research on small-business advertising and local media spending, BIA predicts continued growth in the digital sector while all local media will see further advertising revenue decline even after the recession ends.

"By the end of the forecast period, the overall size of the local advertising market will be considerably smaller than it was at the end of 2008," said Tom Buono, president-CEO at BIA Advisory Services, in a statement accompanying the report.

While some traditional media companies will recover with the economy towards 2011, according to the forecast, most traditional media will continue to suffer. Local advertising spending in traditional media will decline to from $141.3 billion in 2008 to $112.4 billion in 2013, AdAge reported.

Conversely the digital advertising forum is set for significant growth, up from 14 billion in 2008 to 32.1 billion in 2013, an 18 percent compound growth rate. That increase would give interactive media a 22.2 percent share in local advertising in 2013 up from 9 percent in 2008, according to AdAge.