Local Search Spotlight
The local paid-search market is expected to reach nearly $1 billion ($987 million) this year, up from $420 million in 2005, and continue to grow rapidly to 1.7 billion in 2007 and reach $4 billion in 2010, when it will account for 47 percent of local online advertising, according to a Borrell Associates report, "2006 Local Search Advertising."
From the report: "Local advertisers have gone beyond experimenting. Eighteen months ago they occupied 5.6 percent of sponsored links on the major search engines; today it’s more than one-third. For some categories like real estate, local agents are buying half the sponsored links."
However, local advertisers are expected to decrease spending on online display ads and listings by 2010, with spending peaking at $5.7 billion in 2008 and coming back down to $4.5 billion in 2010 - nearer to the 2005 level of $4 billion.
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