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BizReport : Advertising : September 05, 2007
Local online ad spend to reach $2.8 billion
A recent forecast from eMarketer has the local online advertising spend reaching $2.8 billion in 2007. That is about 13% of the total US online ad spend, up only about 1% from 2006 levels. Local websites - both traditional media and user-generated content sites - are driving these local sales.
"The promise of local online advertising, at this stage, surpasses the reality," said David Hallerman, eMarketer senior analyst and author of the report called "Local Online Advertising: Measuring the Market".
By 2008, local online advertising will reach $4.6 billion and by 2009 will reach $5.6 billion. The report found that by 2011 the local online ad spend is expected to reach $7.8 billion, just over 32% of the total online spend.
According to the report, the burgeoning market of small to mid-size businesses advertising on a local level, the increasing number of locally geared websites, local search and local online ad networks will drive the increased spending.
The forecast goes on to predict that local online ads will account for just one-third or less of the total online spend by US advertisers by 2011. However, online spending will account for well over 7% of the local ads purchased and created.
Tags: local online ads, online ads
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