Local web ad spending forecast to surge

11 December 2007

Next year is to see spending on local internet advertising campaigns rocket, a new report predicts.

The study by media research company Borrell Associates claims that local search will lead this boom, doubling to $5 billion (£2.5 billion), with online video tripling to $1.3 billion, according to MediaPost.

And a slow economy is not expected to substantially hamper this growth, with the prediction of 48 per cent growth exceeding the 44 per cent forecast for 2007.

Other local media establishments, such as newspapers and directories, are lagging behind internet advertising, the report notes.

"The internet has hit critical mass and it's become very practical for local advertisers because it appears to be driving more store traffic," observes the company's chief executive officer Gordon Borrell.

He added that about three-quarters of local internet ads will take the form of an "infomercial" next year.

WebProNews has advised that incorporating company location into keywords can help firms' local search optimisation.

Category: Online marketing