- Excerpted from The Frager Factor - Local Search Poised For Marketing Success"People in the US tend to spend 80 percent of their budgets within 50 miles of their homes, and the Kelsey Group thinks that bodes well for local advertising's $110 billion market to shift more into local search ads. Only about four percent of local ad dollars are currently being spent on local search advertising. The Kelsey Group expects that to grow, and fast. They forecast a 50 percent annual growth rate for local search spending.
"Enjoying that growth and more means facing down the yellow pages companies for the attention of local people seeking information. It's a challenge for Google, Yahoo, and Microsoft, all highly desirous of more of the local search market.
"The yellow pages publishers have an advantage today. The Kelsey Group refers to local ad service selling as a "high-touch" occupation, and salespeople can be expensive."
In other words, with their current advantage, and assuming that the nature of local advertising stays static, the Yellow Pages will do just fine. Kind of like the 2007 New York Mets in August.
Nothing personal, Mets fans. But your team is a timely example of how rapid change can occur. And isn't everyone in agreement on rapid change in local search?
Monday October 1, 2007 - 08:46pm (EDT)