Local online advertising was hyped as an indispensable source for the internet shoppers. However, online local advtgs. just manages to receive only eight percent of market share. According to eMarketer, even if the local online ad jumps 51 percent next year to $2 billion, it will not be able to cross 10 percent of the total ad expenditure estimated, $20.3 billion, for the next year.
Further, according to the estimates in the year 2008, the local online ad will make almost 35 percent of total media. However, it will not be able to cross 12 percent of Internet ad spending.
In fact, yellow pages and some newspapers have started to bundle and print sales and that results in not only increasing the total price but undermines the strategic importance of Internet to the local marketers.
While ending, it would prudent to quote David Hallerman, eMarketer’s senior analyst, and author of the report, who says,
one should never underestimate inertia and tradition when trying to gauge future paths for the local online ad market.
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