The locally bought portion of the market, which primarily comprises small and medium-sized businesses, will see the highest growth, at a CAGR of 66 percent. The segment will grow from $45 million in 2008 to $565 million by 2013. Further, the SMB market will swell from 5 percent to 30 percent of the total geotargeted market over the same period.
"The basis for growth of the geotargeted ad market is rooted in the economics of existing search resellers," said Matt Booth, SVP and program director, Interactive Local Media, BIA/Kelsey.
"The effective strategy for companies like AT&T, ReachLocal, Yodle and others will be to use geotargeting to increase margins by shifting spend from paid search to geodisplay. Simply, if a lead from search costs $30, these companies will shift to display where similar quality leads can be obtained for less. The display ad networks have so much excess inventory; they will run whatever impressions are needed to meet reseller targets."
Key players in the local search and geotargeted display ad market will share the podium at BIA/Kelsey's upcoming Interactive Local Media 2009 (ILM:09) conference, Dec. 9-11 in Los Angeles. A session titled "Making Money With/For SMBs" will examine where the SMB money is and sales strategies for reaching local businesses. Panelists for this session include Court Cunningham, CEO, Yodle; Kirsten Mangers, founder and CEO, WebVisible; and Andy Vogel, senior director of sales, Los Angeles Times Media Group.
ILM:09 is BIA/Kelsey's annual conference devoted to digital media with a local focus. The theme for this year's event is "Monetizing the Local Opportunity," and the agenda will cover a range of important topics, including local social media, local search and mobile search. Conference sponsors include 3L System Group, Acxiom, AgendiZe, Akesios, Amdocs, Analog Analytics, AT&T Interactive, Cellcity, Exalead, Kenshoo, Local.com, Local Matters, Localeze, Lyris, Marchex, MatchCraft, MaxiPage, MediaTraks, Shooger and WebsPlanet. Association partners include Association of Directory Publishers (ADP), Great Outdoor Network (GON), International Classified Media Association (ICMA), National Association of Broadcasters (NAB) and Yellow Pages Association (YPA). Media partners include AIM Group, mobiThinking, TVover.net and YP Talk.
For more information, click here.
This news message is supported by The Bazaar, a marketplace to buy and sell creative objects. Earn more revenue by selling your prints, downloadable images, or custom products. Set up your store today and stand a chance to have your products featured on DesignTAXI, towards millions of lovers of creative content!
