According to Borrell Research's new study, the action on the local media battlefield is focusing on the web. Borrell says traditional players like radio, TV and newspaper are looking to the web to provide relief from the revenue pressures put on them by the same media.
Nearly 25% of the web sites in the study were on track to generate more than $1 million in gross revenues this year; 6.6% of them will generate more than $10 million. The study also found that the number of locally based online-only sales people grew 26% in 2006. Budgeted figures for 2007 anticipate an additional 35% increase in hiring this year.
Borrell sees this year's U.S. local online advertising at $7.5 billion, growing at a clip of 31.6% over 2006. Newspapers continue to hold the dominant share, controlling 35.9% of all locally spent online advertising, but pure-play Internet companies (Google, Yahoo, Monster, etc.) are hot on their heels, with 33.2%. Yellow pages operators control 11.7%; Other Print (e.g., homes & land and other local magazines) 9.2%; TV stations 7.7% and and radio stations come up the rear with only 2.2%.
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