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Report: Local Businesses Spend Billions Online — Mostly On Non-Advertiser Marketing

Small U.S. businesses spent about $6.7 billion last year for online marketing efforts, with only a fraction going to online advertising, according to a report by local media researcher Borrell Associates. The report, Main Street Goes Interactive (sub req.), advances the case that Borrell has made before: local advertising, the kind that has traditionally spent small individual amounts on newspaper classifieds and Yellow Pages is up for grabs. Unfortunately, content publishers have a tough time prying their marketing dollars for more general advertising purposes.

Keeping the money within: Small-to-medium sized businesses (or “SMBs”) are expected to increase their total interactive ad spend 24 percent during the next five years

3 Responses to “Report: Local Businesses Spend Billions Online — Mostly On Non-Advertiser Marketing”

  1. "..most of that spending will go towards “non-ad marketing efforts” like site design.."

    I think the figures in the chart should be the other way around, otherwise it conflicts what is being said in the text.

  2. I'd be interested to hear exactly what they include in "total interactive."

    Seems like a confusing term. Most people think of "interactive" as ads that move.

    I suspect that here, local business are spending a lot more of their marketing bandwidth (budget/time) on things that are completely unrelated to ads (mainly blogging and other types of content creation).