Classified Ads Drive Robust Growth Of Local Online Advertising - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Classified Ads Drive Robust Growth Of Local Online Advertising

Spending for online local advertising in the U.S. is forecast to grow 26 percent to $3.2 billion this year and increase to $5.3 billion by 2010, according to a report released Wednesday.

U.S. spending for online local advertising is forecast to grow 26 percent to $3.2 billion this year and increase to $5.3 billion by 2010, according to a report released Wednesday by JupiterResearch.

According to the report, "U.S. Local Online Advertising Forecast, 2005 to 2010," online classifieds will drive that growth and other types of local advertising will lag behind.

Classifieds currently account for about 70 percent of spending on local online advertising, according to the report. "Outside of classifieds, local ad spending online remains relatively immature," said David Card, vice president and senior analyst at JupiterResearch .

Online publishers and networks are better off serving national advertisers seeking local audiences than serving local businesses, Card added.

On another front, pay-per-call technologies, where advertisers pay for calls driven from ad searches, show promise but face uncertain growth, said JupiterResearch Senior Analyst Gary Stein in a statement. In an executive survey among advertisers who use Yellow Pages, 30 percent were interested in the technique. More than 40 percent said they were "very uninterested."

In 2004, local spending drove only 5 percent of online display advertising and 16 percent of paid search listings, according to the report.

"Local service-based companies will lead the second wave of online local spending, but only if they are offered ad models that make sense for them," Stein said. "Pay-per-click doesn't make a lot of sense if you don't value your site as a source of leads."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Commentary
CIOs Face Decisions on Remote Work for Post-Pandemic Future
Joao-Pierre S. Ruth, Senior Writer,  2/19/2021
Slideshows
11 Ways DevOps Is Evolving
Lisa Morgan, Freelance Writer,  2/18/2021
News
CRM Trends 2021: How the Pandemic Altered Customer Behavior Forever
Jessica Davis, Senior Editor, Enterprise Apps,  2/18/2021
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll