US Local Online Advertising To Reach $2.9 Billion
New research from eMarketer projects that local online advertising spending in the US will reach $2.9 billion in 2007.
David Hallerman, eMarketer senior analyst and author of the new report, Local Online Advertising: Measuring the Market, said: “The promise of local online advertising, at this stage, surpasses the reality.”
“But a number of factors are set to accelerate growth in the market: the wealth of small and midsize companies potentially available as online advertisers, the increased use of local internet sites and services by individuals and the development of local online ad networks connected with local media, such as newspapers,” he added.
By 2011, eMarketer estimates that less than one-third of all US ad spending will be locally targeted.
Spending will not match the time spent online. In four years’ time, the internet will account for only 7.6% of all local ad spending.
“Nevertheless, as audiences continue to migrate online and away from traditional local media, such as newspapers and radio, it is only a question of time before online local ad spending catches up,” Hallerman said.
A report from Borrell Associates last year forecast that local online advertising in the US would reach $7.7 billion in 2007, with US Local paid search growing by 86% this year, to $1.8 billion (see US Local Online Advertising To Grow 31% Over 2006).
A recent forecast from Veronis Suhler Stevenson (VSS) predicted that US online adspend will reach $61.98 billion, surpassing newspapers to becoming the leading US ad medium in 2011 (see Ofcom Plans New Public Service Channel To Rival BBC).
The VSS report forecasts growth of 25.79% for ad spending on traditional media-based internet sites, whilst US National internet advertising, which includes search, display and sponsorships, is forecast to reach $38.897 billion in 2011.