As small businesses really start spending for local online ads over the next few years, they should push revenue for local ads alone to what the total market is today for all online advertising.

$20 billion from local businesses in the next three years? A report from Marchex cited figures from Veronis Suhler Stevenson on local online ad growth. They claim the current $8 billion market will rise two and a half times by the time 2011 rolls to a close.

Marchex cited five reasons to believe big growth will be on the way for local online ads:

1. The accelerating adoption of online advertising by small businesses
2. National advertisers expanding their presence in local markets online
3. Delivering phone calls to businesses across online and offline media (think click to call)
4. More effectively connecting consumers with local businesses
5. Greater efficiencies due to consolidation and innovation

Online advertising for local business may mean more than just placing creative somewhere. The report cited a study by Yahoo Research that found “88 percent of sales revenue generated from online advertising is derived from consumers who have done their research on the Internet then made their purchase in a brick and mortar store,” so keep an eye on the conversion data.

Posted on Monday, March 17th, 2008 at 12:34 pm. Permalink