Local Search Worth $4 Billion By 2010

Sponsored search placements for local advertisers will see spending move over from display ads. The Borrell Associates report on local online advertising spending sees a lot of dollars being spent over the next five years. While that spending increases, the destination for those dollars will start to shift to paid search. With projected local online ad spending totaling $8.6 billion, the study claims nearly half of that will be on sponsored search result placements. The reasoning seems pretty straightforward: online advertising is measurable and price competitive, with search being an effective tool. The article also noted the study's consideration of newspapers' future, when it comes to online advertising: "Big newspapers ... are accustomed to tracking only a handful of local competitors," states the report. "With the Internet's low barriers to entry, they now face the prospect of being, well, nibbled to death by ducks." David Utter is a staff writer for Murdok covering technology and business. Email him