16% Growth Expected In Banner Ad Market

Predicts Continued Geotargeted Growth

More good news for the NTR segment, as the "geotargeted display" (or banner) advertising market will grow from $897 million in 2008 to $1.9 billion in 2013, representing a compound annual growth rate of 16%, says BIA/KELSEY. The banner ad segment of the display market will grow from 10.2% of all display ads sold in 2008 to 15% by 2013.

The locally bought portion of the market, which primarily comprises small and medium-sized businesses, will see the highest growth, at a Compound Annual Growth Rate of 66%. The segment will grow from $45 million in 2008 to $565 million by 2013.

"The basis for growth of the geotargeted ad market is rooted in the economics of existing search resellers," said BIA/KELSEY SVP/PD Interactive Local Media MATT BOOTH. "The effective strategy for companies like AT&T, REACHLOCAL, YODLE and others will be to use geotargeting to increase margins by shifting spend from paid search to geodisplay. Simply, if a lead from search costs $30, these companies will shift to display where similar quality leads can be obtained for less. The display ad networks have so much excess inventory; they will run whatever impressions are needed to meet reseller targets."

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