Local businesses increasingly turn to online advertising
Published March 23, 2011
While most companies focusing on local consumers leverage traditional advertising tools, such as Yellow Pages advertisements and radio spots, a new report from BIA/Kelsey indicates they are increasingly turning to digital marketing channels as well.
This year, BIA/Kelsey expects local businesses to spend $24.9 billion on internet advertising - a scant 17 percent of their total projected $135 billion marketing budgets. Over the next four years, however, things are predicted to change, with allocations to traditional media dwindling in favor of digital marketing channels. The source believes local companies will spend $42.5 billion - more than one-quarter of their total budgets - on online marketing in 2015.
"BIA/Kelsey suggested maturing online ad products, increased usage of smartphones and tablet devices and continued disruption of traditional newspaper models are driving momentum for local online ad spending," notes the source.
The economic recession is the reason many businesses are turning to online marketing channels, as these platforms tend to be less expensive than traditional marketing formats.