Excerpted from Borrell & Associates blog:
- Nearly 20% of all ad spending is by local businesses.
- Local advertisers will account for about $641 million of nearly $3.3 billion this year trying to reach consumers via these sites.
- Total is less than 3% of all locally spent online advertising.
- 57% of all that local social-networking advertising is going to two sites, Facebook and MySpace.
- These are the only two sites generating more than $100 million from local advertising placement. This relatively small amount may not seem like much, but the swift growth of these networks appears to be causing a corresponding upswing in local ad placement.
- Keep an eye on Facebook. It is the biggest share-getter. In fact, 74% of its ad revenues are from local businesses.
OK - I "get" that local businesses are buying Web 1.0 banner ads on Web 2.0 social sites. And hey, if it works, why not?
But soon the advertising will be the network, not just a banner. The word-of-mouth that occurs in actual relationships will be harnessed to benefit not only trusted businesses, but consumers and their communities as well.