Local Search Revenue To Reach $31 billion?

That is the forecast from The Kelsey Group, a research and analysis firm. In their annual forecast, analysts indicate that both global local search and online classified advertising revenue will grow to $31.1 billion in 2010.

by Kristina Knight

In 2005, local search saw revenue of $3.4 billion, while online classifieds brought in $12.3 billion in 2005. In their projections, analysts estimate that local search will change the most. Growing from 2005’s $3.4 billion to $13 billion in 2010. Online classifieds are expected to grow from $12.3 billion to $18.1 billion.

One area believed to be on the verge of this change in the automobile market. Neal Polachek, The Kelsey Group’s senior vice president, research and consulting said (in a statement), “Autos are a significant example. . .The Kelsey Group estimates that by 2010 almost 40 percent of an estimated $27 billion automobile advertising market will be allocated to local online and directional media.”

Analysts believe that the growth of local search will continue and in fact explode because of the vast numbers of consumers worldwide who are turning to search engines and other portals to research, comparison shop and buy.

The Kelsey Group will detail more of their projections at this year’s Interactive Local Media 2006 conference. Set for November 29-December 1 in Philadelphia, ILM:06 will explore local search, Internet Yellow Pages, vertical directories, online classifieds, social networks and mobile search.

Tags: Kelsey Group, local search, online classifieds