Forecast: Local Online Ad Spending Will Be Up 18 Percent Next Year


Local online researcher Borrell Associates is revising its forecast upwards for how much advertisers will spend on local online ads next year; the company says it now expects local online ad spending to jump 18 percent in 2011 to $16.1 billion — a figure it had previously said the market would achieve in 2012.

Overall, Borrell Associates expects online ad spending to increase by 14 percent to $51.9 billion in 2011 — an increase it says will be fueled by growth in local, “anything targeted,” and “everything involving social media.” To put both figures in perspective, Borell Associates says both local and overall online ad spending is likely to be up only about “1-2%” this year.

The bullish digital forecasts are in line with what other researchers are expecting for 2011. ZenithOptimedia, for instance, is expecting a 16.1 percent year-over-year increase in online advertising. And, BIA/Kelsey, another local media specialist, said earlier this year that it expected local online ad spending would increase at a 19.3 percent compound annual growth rate over the next four years.

In laying out its 2011 forecast, Borrell points to several local markets, which it says have the “top growth rates” for local online advertising in the U.S. — information likely useful for the growing number of local news startups.

They are: “Monroe, LA



Thanks for the opportunity to clarify my comment. By “anything targeted” I mean a banner, email or text ad that is delivered based on knowing something about the recipient — typically age, gender, geography and/or personal preferences (like golf, gardening or skiing). Most advertisers aren’t buying mass “eyeballs” anymore; they’re buying specific audiences. This means E.M. Herr’s Ace Hardware in Lancaster isn’t likely to buy an banner ad on the local TV station’s website because 75% of the site traffic is well outside of his buying market, but he’s more likely to buy — and at a higher CPM — if you can serve that ad only to people within a 10-mile radius of his store….and even MORE likely if you can deliver a banner ad, email or text message offering a $10 coupon for Scott’s Fall Fertilizer to Lancasteronians who love gardening. (Or is it Lancasterites?)


I see something new business looking for free ways to advertise services and get out there name and a website like is helping them do that by posting their ads for free.

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