Borrell Associates, a research and consulting firm that tracks local advertising, has released a new study that shows a notable increase in the amount of local ads being purchased on social networking sites. Here are their results…
We just did an assessment of advertising placed on social networking sites and were surprised to find that nearly 20% of all ad spending is by local businesses. Our assumption going into this research was that commercials on social networks were almost purely national. Were estimating that local advertisers will account for about $641 million of nearly $3.3 billion this year trying to reach consumers via these sites.
In the scheme of things, its still a drop in the bucket. The total is less than 3% of all locally spent online advertising. If we estimated it for individual local markets (we usually dont do that until an advertising segment reaches $1 billion), it would equate to a few hundred thousand dollars or less in most markets. More…