Media-research firm Borrell Associates called for a 48% increase in local online ad spending next year in its new “2008 Outlook: Local Online Advertising” study. That would bring the total to $12.6 billion.
The study calls for local search advertising to double to $5 billion and “locally placed online video” to triple to nearly $1.3 billion.
The Borrell study urged media outlets to scrap their traditional sales model if they wish to capture their share of revenue. “Most … are still pinning their hopes on their traditional sales reps being able to sell online ad packages,” the summary read. “But there is increasing evidence to support the idea that a greater investment in an independent online sales force will be necessary to continue the growth these properties have enjoyed for the past few years.”
The study concludes that the “Big Three” classified categories of auto, recruitment and real estate will lead the way, with online political “holding promise for local sites.”