Spending on local online advertising totaled $4.8 billion in 2005 - 78 percent more than 2004's $2.7 billion - and will increase 21 percent in 2006 to reach $5.8 billion, according to a new report, "What Local Web Sites Earn: 2006 Survey," by Borrell Associates, MediaPost writes. "Last year's growth spurt was reminiscent of that seen at the height of the dot-com frenzy in 1999-2000," according to Borrell, which defines "local online advertising" as "advertising placed by locally based businesses for locally focused online messages."
Online revenues at newspaper websites were an estimated $2 billion in 2005, up from $1.19 billion in 2004, with real estate, help wanted and car ads accounting for 75 percent of 2005 online ad revenue. Websites of TV stations generated $283 million, up from $119 million in 2004 - but Borrell predicts those numbers will quickly increase as online video takes off.
Borrell examined revenues at 2,266 local media properties, including the sites of 696 daily newspapers, 148 weeklies, 1,154 radio stations, 437 TV stations and 24 independent local sites.
