A new report from Borrell Associates Inc. details how media companies shared the $8.7 billion spent on local online advertising last year and benchmarks revenues from more than 3,000 sites.
The Pac-Man affect continues, with Internet pure-plays continuing to gobble share at the expense of print media, particularly Yellow Pages and newspaper publishers.
Meanwhile, the growth in local online advertising continues to outpace even the most optimistic expectations. Borrell projects 50 percent growth this year — phenomenal, considering the sharp decline in retail sales. The recession appears to be an economic prod that is motivating the smaller local advertisers to abandon long-time spending patterns and seek out the most economical methods of reaching potential customers.
Amid the relentless growth, a transformation is taking place: The most financially successful sites are distancing themselves more and more from their traditional media roots.
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