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

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