JupiterResearch Finds Local Advertising Will Represent A Key Battleground on the Web

JupiterResearch Finds Local Advertising Will Represent A Key Battleground on the Web

NEW YORK — JupiterResearch — a leading authority on the impact of the Internet and emerging consumer technologies on business, has found local display and search advertising have found life on the Internet and are leading among all online advertising categories for significant growth. As a result the cyber stage may be set for increased competition that spans well beyond a local market.

According to the US Online Local Advertising Forecast, 2007 – 2012, released by JupiterResearch, local advertising will increase by 13 percent from 2007 to 2012, faster than online advertising as a whole, of which a 12 percent growth rate is anticipated during the same period. But it will be local display and search advertising that are poised to make the biggest impact. With compound annual growth rates (CAGRs) of 18 percent and 16 percent, respectively, during the next five years, the categories will gain lift from an ongoing strategic push by newspaper and yellow pages publishers as well as improved local performance by the major search engines. While this trend represents a shift from old media to new media, it in no way suggests tactics of the past are becoming extinct.

“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,” explained Lead Analyst Barry Parr, Media Analyst for JupiterResearch. “The ability to assemble relatively larger general audiences will remain a principal advantage of traditional media.”

As search engines, local sites, and local businesses continue to improve their use of simple search engine optimization techniques, the use of search to find businesses and services in the local market will continue to grow. Because the local online market is fragmented and depends on search engines for traffic, local media must learn to work in an environment increasingly dominated by the search bar and prepare for an eventual face-off with national competitors. During the next five years, JupiterResearch believes local advertisers will become increasingly aware of online advertising as an option, have more opportunities, and gain access to improved tools for creating and managing their online marketing.

“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,” said David Schatsky, President of JupiterResearch. “Although search is increasing its impact on the local market, it still demands a degree of sophistication unavailable to most local advertisers.”

The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For details on JupiterResearch’s methodology, visit www.jupiterresearch.com/bin/item.pl/methodology or email press@jupiterresearch.com to request a detailed methodology statement. For additional information on this report or JupiterResearch’s online advertising research service, visit www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupiterresearch.com.

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com.

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