Mark Glaser writes in the OPA Intelligence Report about new research from Borrell & Jupiter Research:
"Publishers that think locally when it comes to selling ads could start to see those efforts bear fruit, according to two new research reports. Jupiter predicts that local online advertising will rise 26% this year to reach 3.2 billion for the whole year, and will touch $5.3 billion by 2010. Borrell Associates predicted even greater growth, 51%, for '05 reaching $4.1 billion for the year, and $8.6 billion by 2010.
MediaWeek noted that the two reports diverged on which sectors would drive that growth. Jupiter believes that local search ads are immature and that classifieds will still make up 70% of all local online ads in '10. Borrell begged to differ, saying classifieds would only make up 15% of local ads on the Net, as search ads explode by 161% next year, and are projected to make up half of all local online ads by the end of the decade.
Borrell's report warned that sites that were bundling online ads with print or broadcast deals could get hurt in the long-term."
Jupiter: Online Local Ads to Hit $3.2B This Year (DMNews)
Borrell Associates Says Local Online Advertising Growing 51.5%
Online Publishers Association: Bi-weekly insights into the online publishing business
Advertising on Community Sites soars
Lokale Community Plattform - oder Lokales Käsblatt ohne Chance?