Local search is getting more lucrative by the year.
According to the latest projections by BIA/Kelsey Group, an adviser to companies in the local media space, local search advertising revenues could top $8 billion within four years.
BIA/Kelsey forecasts local search advertising revenues to increase from $5.1 billion last year to $8.2 billion by 2015.
But is a compound annual growth rate of 10% too ambitious of a projection? Not at all, says Matt Booth, senior vice president and program director of BIA/Kelsey’s Interactive Local Media practice.
“Local search ad revenues hit an all-time high last year, driven primarily by better product integration across search engines, especially Google,” Booth says. “Revenues will continue to grow as better targeting, increased mobile usage and improving integration drive up local search activity.”
Based on the findings of the report and its corresponding projections, local search activity will continue to fuel this emerging market’s profitability to dizzying new heights.
By 2015, BIA/Kelsey projects, 30% of all search volume will be local in nature.