36% of all ads sold on Google and Yahoo! search pages are local ads

From $25 mln in Atlanta to $220,000 in tiny Zanesville, Ohio, local advertisers have begun to spend larger amounts on paid search advertising, according to Borrell Associates. Smaller local businesses are doubling their expenditures in 2006, up from $420 mln in 2005. Local advertisers were buying 36% of all text ads on Google and Yahoo results pages. When Borrell conducted this research 18 months ago, the figure was 5.6%. The highest users were local real estate agents, who were buying nearly half the links on city keywords. In some markets like Tampa, local agents occupied as much 80% of the sponsored links.