Local online advertising to reach $3.9 bln in 2005

Borrell Associates predicts that businesses will spend $3.9 bln in local online advertising in 2005 (an increase of 49% from the $2.7 bln spent in local online ads in 2004). Overall Internet ad spending will increase by 33%. Paid search will represent only $329.5 mln (around 8% of the 2005 local online ad spend). The Kelsey Group predicts that local search will leap to $418 mln this year – up from $162 mln in 2004.