According to Borrell Associates, in 2009 there was $13.2B in money that originated in the local marketplace and was spent on local online advertising. You’d think that local businesses were enterprising most of that, but in 2009 for the first time it was “pureplay” web companies, with Google as the largest player, who took over half that revenue – this is revenue that’s leaving the community in which the advertisers operate.
Terry Heaton (@TerryHeaton) has a thoughtful on the implications of this called We have met the enemy, and he is “pureplays”. Link: Terry Heaton’s PoMo Blog.
The Borrell pie charts also show that local radio and television have a miniscule part of this $13.2B, and that the share of local newspapers is shrinking rapidly. --Dennis