Marchex, Inc. (NASDAQ: MCHX) recently released an industry report titled “Unlocking the Potential of the local Internet“. In the report, Marchex points out that the local advertising market will be worth an estimated $100 billion by the end of 2007. It also says that local Internet advertising is expected to be about 5% of this year’s local advertising spendings (as compared to radio, TV, newspapers, etc.). The company says that, according to Piper Jaffray’s online media survey, local Internet advertising spendings could reach 25% by 2017, which would equal $25 billion. Excerpt from the report:
The local search landscape has changed a great deal since the first city guides and online directories were launched more than a decade ago. As much as anything else, the 2005 birth of Google Maps confirmed that we have a reinvigorated local search space. Practically every major Internet destination has locally focused tabs or links; and new local sites, such as eBay’s classified site Kijiji.com, launch almost daily. A recent study by comScore Networks and TMP Directional Marketing, found that local search grew 24% so far this year, while general Web search grew only 14%.8 We are beginning to witness how powerfully the local Internet can influence the way we interact with and make decisions in the offline world.
I’ve been a long time fan of online mapping, long before the hot days of MapQuest. Part of being a fan meant buying some of the best mapping domains in the world. Surprisingly though, we have never gotten a serious inquiry from one of the big search engines or a serious mapping company for these domains (the best of them is likely worth well over 10 millions US$ on the high end and mid seven figures on the low end). This tells me we have a long way to go before the world gets the domain space, gets the concept of great domains.
Without a doubt, I believe online mapping will be responsible to a major growth in local search. Besides online mapping though, what else could be responsible for significant growth in local search? Food for thought.
Via Dominik Mueller’s blog:
i just passed on “wikimaps.com” on godaddy 2 days ago. I couldn’t afford more than the 2000 at the moment. I think it went for a little over $2000. I think I chickened out, but was also concerned that this would be “squatting” on wikipedia’s strong brand name and their own map initiative. There is such great development potential with that name though, especially for local advertising.
-Brian
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That’s a very(!) nice name for development.
LocalSearch.com Domain Sells For $3.3 Million
http://www.webpronews.com/topnews/2007/09/12/localsearch-com-domain-sells-for-3-3-million
I think wider adoption of click to call ads will help. There seem to be more local advertisers, but often their sites are rudimentary at best. Also, I think a lot of local searchers are really looking for a phone number rather than a website. The searcher likely has an immediate need/problem they want to take care of..
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This last point you made, that some searchers are looking for immediate need/problem to take care of, depends on two issues.
1. The industry
2. Where the consumer is in the sales cycle
I don’t think click-to-call is a solution though as it is not natural to how phones work. I like our model, the one we have on our directory at funeralhomes.com, much better. It is natural and allows for complete tracking.