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BizReport : Research archives : September 08, 2006

Outlook Good For Online Advertising Providers in 2007

In the short term, local online advertising providers have a lot to look forward to. A new report from Borrell Associates is calling for a banner year for local online advertisers in 2007. According to the report, the upswing for advertising providers will continue as local businesses continue looking for new, more efficient traffic solutions.

by Kristina Knight

Online advertising sales are projected to grow to about $7.7 billion in 2007. That is more than a 31 percent increase over 2006 sales. That projection is based on the fact that about half of all online ad providers are adding to their online sales force. So far in 2006 there has been 37 percent growth in the sales force. Some sites have three to four dozen salesmen dedicated to online advertising.

The bad news? This growth trend cannot continue. Borrell Associates projects a slowdown beginning in 2008 and a flattening market by 2010, as online advertisers begin to outperform traditional advertising. One trend that could spell a slower-slowdown is local video advertising. In 2007, this form of advertising will become trackable and could impact the overall growth of the industry.

Real estate and automotive companies are best positioned to take advantage of online advertising growth, however, smaller businesses can take advantage by utilizing email and paid search (pay-per-click/per-call) forms of local advertising.

To see the Borrell Report click on

Tags: advertising forecast, automobile industry, email marketing, online advertising, online sales, online video advertising, pay-per-click, small business

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