Local advertising dollars continue to go online: study

June 7, 2007

Advertisers continue to spend their money on the Web instead of with traditional local media outlets, Borrell Associates said in a study released Tuesday. Borrell projects local online ad spending will top $7 billion in 2007, an increase of 31 percent over 2006.
“Newspapers are scrambling to make up losses in classified advertising. TV stations are scrambling to cover declines in automotive and political ads,” Borrell said in the report. “These traditional players are looking to the Web to provide relief from the revenue pressures put on them by . . . the Web.”
Still, the Web versions of local newspapers earn 35 percent of the total online advertising revenue. Search engines such as Google and Yahoo! are next with 33 percent of the revenue. Local TV stations earn 9 percent while radio stations bring in only 2 percent of the overall revenue. 

According to Editor & Publisher, the newspaper Web sites that attract online advertisers do so because of several factors, including staffing online-only sales people who target nontraditional advertisers and by instituting higher online ad rates. — Compiled by Brenna Jackson for Tactics and The Strategist Online



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