Report: How local websites are making money

Local websites are becoming more and more popular with consumers; local media websites are even more popular. According to a recent report from Borrell Associates, local media websites earned just under $9 billion in 2007.

by Kristina Knight

Of that amount, online pure-plays are the most popular. They account for just over 57% of the local online media spend; they are currently earning more than print media, including newspapers and classified publications. Newspaper sites are still popular with consumers and with advertisers, accounting for just under 25% of the spend. Directories (7.8% of the spend), Broadcast sites (6.9%) and Other Print (1.4%) publications round out the top five biggest revenue getters.

Researchers at Borrell Associates expect the local online ad spend to continue growth; they forecast a 50% growth rate for 2008. This is despite an apparent recession in the general US economy and a decline in retail sales over the first quarter. According to the report, with less money to spend, marketers want the most bang for their buck.

With more consumers logging on to the Internet to research products, buy tickets or get the daily news, marketers feel the Internet is the best place to convert researchers and window shoppers into buyers.