Tuesday, November 3, 2009

Local to Take Lead on Online Ad Spend

Beginning this year, Piper Jaffray sees local online advertising spending outpacing the national spend in the US.

In 2008, national and local spending levels were equal. But while the research firm projects a drop in national online ad spending for 2009, local is expected to increase by 5%.

Over the next five years, Piper Jaffray predicts a compound annual growth rate (CAGR) of 9% for local online ad dollars, compared with 4% for national Internet spending.

Borrell Associates, on the other hand, forecasts only a 2.9% CAGR for local online ad spending over the next five years. Borrell puts spending at $16.4 billion in 2013, compared with $19.18 billion for Piper Jaffray.

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