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Study: Geotargeted display expenditures to grow strongly

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Chantilly, Va.—The geotargeted display advertising market is expected to grow from the $897 million spent on banners in 2008 to $1.9 billion by 2013, representing a compounded annual growth rate of 16%, according to local media consulting company BIA/Kelsey.

Spurring this, the company said, is the potential for lower cost-per-lead attributed to geotargeted display ads, compared with paid search.

The locally purchased segment of this market, made up primarily of small and midsize businesses, will power banner ad growth, according to the company. Expenditures in the sector will swell from $45 million in 2008 to $565 million by 2013, and grow to 30% of the total geotargeted market from 5%, according to the study.

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