In its new “outlook” report, Borrell Associates is projecting $12.6 billion in locally targeted online ad spending, with $5 billion of that coming as local search (up from roughly half that figure in 2007). Borrell says the value of the market in 2007 was roughly $8.5 billion, consisting of local “banners,” local search and, the smallest category, video. There’s lots of very specific data in the report, which I’ve written up at a high level in a post at SEL.
Here are Borrell’s top online local ad spending categories (online spend as a percentage of total ad spend):
- Recruitment
- Real estate
- Computer-related services
- DotCom Businesses (this is a problematic category)
- Auto marketing
- Miscellaneous retail
The following are the perceptions of what these “highest penetration” categories are according to a recent poll I conducted among a small but high-level group of local search executives whose companies sell to SMBs (n=25):
Which of the following SMB categories are furthest along in adopting online marketing?
- Auto dealers
- Realtors
- Insurance/financial services
- Lawyers
- Restaurants
Here’s the recent VSS forecast, including local. And here are eMarketer’s more conservative numbers for geotargeted ads online.
December 9, 2007 at 8:45 am |
You are spot on. Great article. Thanks Monte
December 13, 2007 at 5:45 pm |
[...] what’s interesting is that the latest Borrell report puts current “local online advertising” (in 2007) at $8.5 billion. That number includes [...]
December 18, 2007 at 11:48 am |
[...] and Local Ad Dollars The Wall Street Journal has an overview piece, basically focused on the Borrell data, that discusses newspapers’ collective efforts to focus more online and revamp their sales [...]
January 10, 2008 at 3:28 pm |
[...] search executives (in a poll I conducted late last year) cite realtors as the SMB category with the highest online advertiser penetration behind only auto dealers. Last year, Peter Zollman’s Classified Intelligence presented a [...]