Local Newspaper Websites Lead in Local Online Advertising

In a report by Borrell Associates, over $2 billion was spent in 2007 by local advertisers on the websites of local newspapers.  This represents a 27% share of the local online advertising market ahead of local yellow pages, television websites and local radio stations.  Local online video advertising is the fastest growing segment with an expected $1.2 billion to be spent in 2008.

Interestingly, a majority of online advertisers at local newspaper websites do not advertise in print editions of the paper.  One explanation for this can be the use of dedicated sales teams to actively solicit advertisers for online.  Unlike other media outlets, newspapers devote two times as many online-only sales people.  This means a salesperson who specializes in online advertising is contacting local businesses to solicit business, not a print salesperson.

What does this mean for local advertisers?  It’s critically important to have a unified strategy to deal with whatever media types are being used.  While a majority of local businesses may only advertise on the newspaper website and not in print, it does not rule out countless other forms of media: radio, television, yellow pages, e-mail, billboard and more.

In order to get the best ROI, creative versioning is essential to coordinating the message the local business wants to present.  90% of local businesses are either branded branches of a national brand or resell national brands – incorporating national brands and themes into local campaigns is critical to capitalizing on the efforts of national brands.