Local Paid Search to Reach $2.5 Bil. by 2008

By: E&P Staff Online local paid-search advertising in the U.S. could reach $2.5 billion by 2008, according to the Kelsey Group of Princeton, N.J.

A new white paper from the consulting firm estimates that 10% of local searches ultimately result in a buying decision.

"We estimate there are some 200,000 to 250,000 paid-search advertisers globally right now, and 10 million small and medium-sized enterprises in the U.S.," said Greg Sterling, author of the study. "There is clearly a tremendous local opportunity, but there are plenty of challenges in tapping that market, partly because it is so fragmented."

Paid search has become big business, with contextual sponsored links offered through Google, Overture and other companies.

For more information about the report, "A Closer Look at Local Search," visit kelseygroup.com.