A new Borrell Associates report, Say Goodbye to Yellow Pages , forecasts explosive local online advertising growth over the next 5 years. The report is $995 but the summary is free. Their forecast premise is print Yellow Page advertising will go the way of classified ads and move online. Key quote on this movement:
"Over the next 5 years, we are predicting that 39 percent of the ad revenue spent on print yellow pages revenues will vanish as small businesses shift marketing budgets online."
Helping drive this shift is an army of sales people focused on selling online media. According to Borrell, over 34,000 media sales reps are pushing local online advertising. Most all of these folks are retrained and refocused legacy media reps working for newspapers, Yellow Page companies and other local media companies. All of this effort is resulting in the rapid growth of local online advertising, which Borrell says will grow 61% this year to $14.1 billion.
Borrell also reports that local online video is the fastest growing piece of local online advertising and that by 2012 it will surpass all other formats, including paid search. We've posted on this trend in the past and we continue to be amazed at the rapid growth of online video advertising.
We covered the shift to local online advertising by small businesses last year in our forecast report The Connected World of Entrepreneurs. Borrell's recent report and forecast shows this trend continues to gain momentum.