BizReport - May 19, 2011
Add another advertising option to local businesses plate: local search is set to rev up in the next four years. According to an updated forecast from BIA/Kelsey Group, local search advertising revenues should surpass $8 billion by 2015.
"Local search ad revenues hit an all-time high last year, driven primarily by better product integration across search engines, especially Google," said Matt Booth, senior vice president and program director of BIA/Kelsey's Interactive Local Media practice. "Revenues will continue to grow as better targeting, increased mobile usage and improving integration drive up local search activity."
In 2010 local search ad revenues hit just over $5 billion; the increase expected by 2015 would represent compounded annual growth of 10%.
Local search really began taking off for local and regional brands in 2010 as more consumers converted to smartphones and tablets and as mobile browsing took off. As more consumers switch to smartphones, tablets and as e-readers become more functional, these mobile browsing habits are expected to continue, making local search more viable. Local search is forecast to represent about 30% of search volume by 2015.
According to data from comScore more than 16 billion 'explicit core' searches were queried in April, with Google accounting for nearly 11 billion. Yahoo sites accounted for nearly 3 billion core searches with Microsoft wrangling just over 2 billion. Meanwhile, mobile consumers continue to spend more time with mobile browsers. In December 36% of mobile consumers accessed their mobile browser; in March nearly 39% accessed.
This makes browsers the second most used option from mobile devices, behind texting. Mobile browser use exceeds downloading apps, accessing social networks and playing games.
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