Local search engine advertising is predicted to reach nearly $4 billion by 2010, up from just $420 million in 2005, according to a new report from Borrell Associates.
This year, the report estimates that local advertisers will push almost $1 billion into the advertising channel, almost doubling spend from 2005’s figure.
Borrell reveals that local advertisers in the US occupy over a third of sponsored links on local search engines, up from 5.6% eighteen months ago.
Despite this solid performance, a recent report from eMarketer claim that search rates in the US are slowing, with paid search expected to increase by 26.2% in 2006, somewhat less than last years 33.3% (see Online Search Growth To Slow).
However, search engine advertising will still perform well over the coming years, with Outsell forecasting adspend to rise by 26% in 2006 (see Search Engine Adspend To Rise By 26% In 2006).
The Kelsey Group also expects local search to do well, projecting the advertising channel to rise by 30.5% over the next five years, reaching $13 billion by 2010 (see Online Local Search To Reach $13 Billion By 2010).
Elsewhere, paid search is also expected to enjoy a healthy 2006, with a recent report from Piper Jaffray predicting the medium to generate more than $14 billion globally over the coming year, enjoying an increase of 41% from the estimated $10 billion that it made in 2005 (see Global Broadband Lines Up By 9% In Q3 2005).
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