Borrell: 2008 Local Online Ads = $12.6 Billion

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):

  1. Recruitment
  2. Real estate
  3. Computer-related services
  4. DotCom Businesses (this is a problematic category)
  5. Auto marketing
  6. 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?

  1. Auto dealers
  2. Realtors
  3. Insurance/financial services
  4. Lawyers
  5. Restaurants

Here’s the recent VSS forecast, including local. And here are eMarketer’s more conservative numbers for geotargeted ads online.

4 Responses to “Borrell: 2008 Local Online Ads = $12.6 Billion”

  1. Monte Says:

    You are spot on. Great article. Thanks Monte

  2. When Will Local Get Respect? « Screenwerk Says:

    […] what’s interesting is that the latest Borrell report puts current “local online advertising” (in 2007) at $8.5 billion. That number includes […]

  3. Newspapers and Local Ad Dollars « Screenwerk Says:

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    […] 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 […]

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