Borrell Associates predicts that local online advertising faces another banner year in 2007, as local businesses continue to seek new, more efficient ways to drive traffic. It will grow to a $7.7 billion category in 2007, a 32% growth over 2006. However, Borrell projects a slowdown in the growth of standard online ads by 2008, a further slowdown in 2009, and a flattening or perhaps even a 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, online ad spending will continue to migrate toward targeted forms of online advertising such as e-mail and paid search. The report expects local video advertising to become a trackable category within the next year. The biggest online ad opportunities currently revolve around real estate and automotive. Combined, these two categories comprise slightly more than one-third of all local online advertising.
No responses yet