Local paid search will hit $1 billion in 2006, according to a report by Borrell Associates. Smaller businesses are going to double their expenditure in 2006.


Local paid search will hit $1 billion in 2006, according to a report by Borrell Associates.

The report predicts that smaller businesses are going to double their expenditure in 2006. The paid search expenditure in 2005 was $420 million.

Local advertisers bought 36% of all text ads on Google and Yahoo result pages. The highest users were local real estate agents, who bought nearly 50% of the links on city keywords.

Gordon Borrell, of Borrell Associates, said: “Local advertisers buying links on Google is no longer an oddity. It’s commonplace in a lot of markets, from Des Moines to San Diego.

The sudden reach of search advertising that can produce results for local businesses has caught many local media companies by surprise. They’ve tackled the Web nicely with banners and listings, but they’re scrambling for solutions when it comes to search advertising.” [Source]

The report also predicts the emergence of a “local Google” that will overtake the national search engines.

The report includes an appendix list of paid search spending in 210 U.S markets for 2006.

To purchase the report, click here.