Global Local Search and Online Classified Ad Revenues to Reach $31.1 Billion in 2010, Forecasts Kelsey Group
Wednesday, 08 November 2006
According to The Kelsey Group’s annual forecast, global local search* and online classified advertising revenues will grow from $15.7 billion in 2005 to $31.1 billion in 2010. The local search segment will grow from $3.4 billion in 2005 to $13 billion in 2010, with online classifieds growing from $12.3 billion to $18.1 billion during the same period.
“We expect numerous local search start-ups to challenge the predictable revenue flows that the large established marketplaces for automobiles, real estate and other key segments have enjoyed for decades,” said Matt Booth, program director of Interactive Local Media and ILM:06 conference chair. “At the heart of these profound changes is the phenomenal growth in local search traffic as more and more global consumers turn to the Internet for researching, comparing, shopping and transacting very small and very large purchases.”
“The recent announcements that Google plans to broker advertising beyond the Internet to traditional media could further disrupt an already challenging local media market,” added Neal Polachek, The Kelsey Group’s senior vice president, research and consulting. “Autos are a significant example because of the size of the advertising category. The Kelsey Group estimates that by 2010 almost 40 percent of an estimated $27 billion automobile advertising market will be allocated to local online and directional media.”