U.S. local online ad to reach $8 billion by 2011

Posted by Erina Lin on November 6, 2008 at 2:50 PM

U.S. local online advertising is growing steadily. According to the local Internet advertising model constructed by Jupiter Research, in 2005 it totalled US$3.5 billion, will reach $5.7 billion by the end of this year, and is expected to achieve $8 billion by 2011, SFN's World Digital Media Trends 2007 reported.

Classified advertising is the biggest contributor to total local online advertising. In 2005, it accounted for $2.4 billion, representing a nearly 70 percent share. It is expected to reach $4.9 billion, however, with the share dropping to about 60 percent in 2011.

Search advertising made up $800 million in 2005, but it is growing and will exceed $2.1 billion in 2011, with the share increase from 22 percent to more than 26 percent, according to Jupiter Research.

Display advertising, though, contributes the least. It only accounted for $0.3 billion, or less than a 10 percent share in 2005. However, its growth is the strongest, and is expected to reach $1 billion in 2011, giving it a 12.5 percent share that year, according to the report, World Digital Media Trends 2007, released by SFN and the World Association of Newspapers.