US Local Online Ad Spend Close to $3B in ’07, $8B in ’11

September 4, 2007

This article is included in these additional categories:

Email | Local & Directories / Small Biz | Paid Search

US local online advertising spend will reach $2.9 billion, or about 13.4% of US online advertising spending, eMarketer projects in a newly released report, ” Local Online Advertising: Measuring the Market.”

The local online ad market is projected to increase from $2.1 billion in 2006 to $7.8 billion in 2011, according to the report, with a significant burst of growth anticipated in 2008.

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eMarketer projects that local online ad spend will grow $1.7 billion next year, reaching $4.6 billion, or 16.0% of all online advertising – 2.6 percentage points more than in 2007.

By the end of 2011, the local online ad market in the US is projected to reach $7.8 billion, or 17.7% of total US internet advertising spend.

However, the share of local advertising (online and offline) is projected to gradually decrease in the US within the next five years, according to eMarket. Whereas in 2006 national advertising constituted 64.8% of total advertising vs. 35.2% for local, by the end of 2011 those proportions are projected to be 67.8% and 32.2%, respectively.

In that period, total US ad spend is projected to grow from $281.6 billion to $320 billion.

Note: “Local online advertising spending” refers to local and national advertisers’ online spending in local markets, specifically for paid search, display, rich media, video, classifieds, sponsorships, referrals and email.

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