Global local search and online classified advertising revenue will grow to $31.1 billion in 2010, according to new research from the Kelsey group.
In 2005, local search saw revenue of $3.4 billion, while online classifieds brought in $12.3 billion. Local search is predicted to show the largest growth, from the $3.4 billion recorded in 2005, to $13 billion in 2010.
Meanwhile, online classifieds are expected to grow from $12.5 billion in 2005 to $18.1 billion in 2010.
The automobile market is set to be one of the areas at the forefront of the growth. Neal Polachek, senior vice president, research and consulting, said: “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.”
Kelsey Group adds that the growth of local search will continue and increase massively due to the large numbers of consumers worldwide who are using search engines and other portals to research and buy goods.
Recent research from Borrell Associates said that local online advertising in the US will grow by 31.6% over 2006, reaching $7.7 billion in 2007 (see US Local Online Advertising To Grow 31% Over 2006).
In June, a report from eMarketer said that local online advertising in the US will reach $1.3 billion for 2006, which equates to 7.9% of the total $16.7 billion in US internet ad spending for the year (see Paid Search Will Be Driving Factor Behind Local Online Advertising).
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