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.
Screenwerk 
December 9, 2007 at 8:45 am
You are spot on. Great article. Thanks Monte
December 13, 2007 at 5:45 pm
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