From a blog post by Gordon Borrell:
[W]e may have been far too conservative earlier this year when we projected that local online advertising would grow 8% in 2009. At the end of the first quarter, the increase looked closer to 11% . . .
Phenomenal as it may seem, we’re getting data indicating triple-digit growth for some companies selling interactive advertising. These are definitely the “get it” companies that have hired dedicated sales forces and are plowing ahead with the products advertisers are buying. We aren’t, however, seeing triple-digit growth from companies that continue to labor under the delusion that “convergence sales” is a viable strategy.
Right now we’re pegging local online advertising at $14.03 billion, up from our estimate of $13.3 billion issued back in January.
This may indicate something of an “inflection point” motivated by the recession in part. But it would also appear to be driven by competition among local media companies and independent sales channels. Any comments Gordon?