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Online local advertising forecast to surge 26% this year

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New York—U.S. spending on online local advertising will grow a robust 26% to $3.2 billion this year, and then 11% compounded annually to $5.3 billion in 2010, according to a forecast by Jupiter Research, a division of Jupitermedia Corp.

Jupiter Research said classified ads would continue to comprise about 70% of total online local advertising.

“Outside of classifieds, local ad spending online remains relatively immature,” David Card, VP-senior analyst at Jupiter Research, said in a statement. “For now, online publishers and networks will find better opportunities servicing national advertisers that are aiming at local audiences than they will servicing true local businesses,” he said.

In 2004, local spending accounted for just 5% of online display advertising and 16% of paid search advertising.

—Carol Krol

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