Online Advertisers Start to Think Locally
AUGUST 30, 2007
Who you gonna click?

eMarketer projects that local online advertising spending in the will reach $2.9 billion in 2007.Interestingly, that is still only 13.4% of the total Internet ad market.The promise of local online advertising, at this stage, surpasses the reality," said David Hallerman, eMarketer senior analyst and author of the new report, Local Online Advertising: Measuring the Market.

But a number of factors are set to accelerate growth in the market: the wealth of small and midsize companies potentially available as online advertisers, the increased use of local Internet sites and services by individuals and the development of local online ad networks connected with local media, such as newspapers," he said.

Local online advertising's share of total media ad spending has fallen slightly, year over year, according to Universal McCann. By 2011, eMarketer estimates that less than one-third of all US ad spending will be locally targeted.

Spending will not match the time spent online. In four years' time, the Internet will account for only 7.6% of all local ad spending.

Nevertheless, as audiences continue to migrate online and away from traditional local media, such as newspapers and radio, it is only a question of time before online local ad spending catches up," Mr. Hallerman said.

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