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April 22, 2008
U.S. Interactive Classified
and Vertical Advertising Revenues to Reach US$14.7 Billion by 2012,
According to The Kelsey Group
Online media execs
will gather in Seattle next week to examine the role of classifieds
and verticals in local advertising at ‘Drilling Down on Local
’08: Marketplaces’
Princeton, NJ (April 22, 2008) --
While online advertising has been propelled primarily by search,
banners, e-mail and lead generation, The Kelsey Group expects verticals
to emerge as a key driver of online advertising by 2012. Based on
trend analysis, the firm forecasts the U.S. interactive classified
and vertical share of online advertising will grow from 18 percent
in 2007 to 24 percent by 2012. Revenues for interactive classifieds
and verticals will grow from US$3.9 billion to US$14.7 billion during
the same forecast period, representing a 30.5 percent compound annual
growth rate (CAGR).
“Vertical businesses are harnessing the network
effects of the Internet, much like Expedia and others did for travel
in the late 1990s,” said Kelsey Group Program Director Peter
Krasilovsky, cochair of Drilling Down on Local ’08. “We’re
seeing an accelerated effect from fragmentation, which will draw
ad revenue from traditional media toward online vertically targeted
solutions.”
During the forecast period, U.S. online classifieds
will grow from US$3.9 billion to US$9.1 billion (18.6 percent CAGR)
and online verticals (such as home services, home and garden, health
care, legal and auto repair) will grow from US$100 million to US$5.6
billion (461.4 percent CAGR).
The growth of online classifieds and verticals is
the subject of The Kelsey Group’s “Drilling Down on
Local ’08: Marketplaces” conference, which takes place
next week, April 30-May 2, in Seattle, Washington. More than 500
senior executives from across the online media industry will come
together to explore the implications of the emerging vertical trend
on local advertising. Among the nearly 200 companies participating
are AutoTrader.com, Cars.com, Cox Enterprises, Fox Interactive Media,
HealthCare.com, Hearst, LATimes.com, MapQuest, Microsoft, MMB Media,
Mywedding.com, The Seattle Times Co., Spot Runner, Trulia, TurnHere,
Verizon, Ward’s Automotive, Yahoo!, Yellow Book USA, Yellow
Pages Group, Yelp!, Zillow.com and Zvents.
About Drilling Down on Local ’08
Drilling Down on Local ’08 is The Kelsey Group’s 16th
conference since 1998 devoted to interactive local media and local
online commerce. Detailed information about the conference program,
speakers and companies attending is available at http://www.kelseygroup.com/drillingdown2008.
Conference sponsors include Acxiom, AdReady, AgendiZe, Amdocs, Apptus,
BIA Financial Network, Call Genie, Hawthorne Executive Search, Homes.com,
iBegin, Lat49, Local Matters, Local.com, Localeze, Marchex, Matchcraft,
MediaTraks, Mixpo, Moon Valley Software, Oodle, Orange Soda, SpotMixer
and Topix. Association partners include Association of Directory
Marketing (ADM), Association of Directory Publishers (ADP), International
Classified Media Association (ICMA) and Yellow Pages Association
(YPA). Media sponsors are LatinVision Media and TVover.net.
About The Kelsey Group
The Kelsey Group is the leading provider of research, data and strategic
analysis on directories, small-business advertising, online local
media, vertical market advertising and mobile advertising. Founded
in 1986, the company has built a reputation as the premier analyst
firm covering the directory publishing community and the emerging
local search marketplace, providing advisory services (The Kelsey
Report®, Interactive Local Media and Marketplaces), publishing
(Global Yellow Pages™), consulting (more than 400 individual
assignments) and conferences (72 events).
For more information contact:
Eileen Pacheco
eileen@tango-group.com
(781) 556-1026
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