Local online advertising in the US is predicted to grow by 31.6% over 2006, reaching $7.7 billion in 2007, according to new research from Borrell Associates.
US Local paid search, which Borrell says is already approaching $1 billion this year, is forecast to grow by 86% in 2007, to $1.8 billion.
In addition, local e-mail advertising is predicted to grow to $233 million next year, up from $150 million in 2006 a 54% increase.
However, recent growth rates are not expected to continue indefinitely, with a slowdown projected in the growth of standard online ads by 2008 followed by a further slowdown in 2009.
Borrell Associates also forecasts a flattening or even mild-decline in local online advertising by 2010, as online promotions begin to attract more ad dollars away from traditional advertising.
In the near term, Borrell says that online ad spending will continue to migrate toward more targeted forms of online advertising such as email and paid search.
Borrell identifies real estate and automotive as currently being the two largest categories in local online advertising, making up just over one third of the market.
Meanwhile, a report released by eMarketer in July said that local online adspend will grow by nearly 51% in 2007, to $2 billion (see Paid Search Will Be Driving Factor Behind Local Online Advertising).
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