JupiterResearch has come out with a new a new report that shows that local display and search advertising has found a home online and are the leaders amongst the online ad categories experiencing significant growth.
According to the US Online Local Advertising Forecast, 2007—2012, released by JupiterResearch, local advertising will increase by 13% from 2007 to 2012. This is faster than online advertising as a whole which is only projected to grow about 12% in the same time frame. The biggest impact is anticipated to be made by local display and search advertising with compound annual growth rates (CAGRs) of 18% and 16% respectively, during the next five years.
Lead Analyst Barry Parr, Media Analyst for JupiterResearch stated “Although traditional media such as newspaper and local broadcast are facing new challenges regarding their business models, local advertising in these media mainstays is not a dying market. The ability to assemble relatively larger general audiences will remain a principal advantage of traditional media.”
David Schatsky, President of Jupiter Research said in the statement “At this point, most local advertisers are not marketers and do not have the time or resources to manage, let alone optimize, online advertising campaigns. Although search is increasing its impact on the local market, it still demands a degree of sophistication unavailable to most local advertisers.”