Report: Local online advertising jumps
Silicon Valley / San Jose Business Journal
Spending on local online advertising accelerated in 2004, growing to a national total of $2.7 billion, a 28 percent increase over 2003, according to figures compiled by Borrell Associates Inc., a Virginia-based research and consulting firm that tracks local Internet advertising. The growth is expected to accelerate even more this year, mushrooming by 46 percent, to $3.9 billion. Borrell's report says.
"Newspapers, TV stations, radio stations and Yellow Pages publishers are turning to the Internet to boost sagging audience numbers and profits," the report says, with some newspaper online operations accounting for as much as 45 percent of an individual company's advertising growth.
Traditional locally based media companies control about half of all local online advertising, building those revenues mainly by up-selling their current print and broadcast customers. Pure-play Internet competitors such as Google, Inc. (NASDAQ: GOOG), AutoTrader.com and Monster.com, a unit of Monster Worldwide Inc. (NASDAQ: MNST) control the other half, according to the report.
Average growth in 2005 is expected to be 46 percent; sites that grow below their overall market growth will lose share, the report says.
"For traditional media companies, that means lessening their dependence on bundling print or broadcast advertising with online advertising, and adding online-only sales positions," says Borrell. "Future online growth for them is likely to come from using the Internet to reach out to that large segment of advertisers that don't currently do business with them."
Related Industry News |
Latest News |
Most Viewed Stories |
Most Emailed Stories |
