Borrell Associates expects a 48 percent increase in local online ad spending in 2008, bringing spending to $12.6 billion. Local search and online video advertising will drive much of the activity, Borrell says.
Local search advertising will more than double to $5 billion, while locally placed online video will triple to almost $1.3 billion.
A major component of local video advertising will be long-form pieces for home, automotive and health-related categories, the firm argues.
Most yellow pages publishers, cable companies, newspapers, radio stations and TV stations are still pinning their hopes on their traditional sales reps being able sell online ad packages. But local sales entities might have to create separate online-only sales forces to get the job done.
Most sales entities face the same problem: it is tough to grow sales for new lines of business when those new lines represent a small percentage of the overall sales opportunity and might even cannibalize the existing business.
2 comments:
Local online ads are much less effective than newspaper advertising, unless targeted precisely at the right audience, which is a long way away yet.
Businesses that are interested in local advertising are usually small and do not understand the online world. They are more likely to go with whatever the sales rep offers them than trying a D.I.Y. approach with an online ad network.
We learned it the hard way through our small community paper. I don't think it's too different in other developed countries.
Here's some examples of how businesses are using video on the internet. They are going direct to customers with online video ads for their products
www.tvwebpro.com
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