The importance of local SEO cannot be stressed enough. Even though the online explosion has enabled consumers and businesses across the street or across the ocean to communicate and globalization remains a revolutionary byproduct of technological advances, the internet age has had an even bigger effect on local marketing.
As mobile continues to become essential to campaigns and local strategies help place businesses right in front of the consumers nearest to them, local search is increasingly crucial to advertising success. That success is becoming increasingly profitable as well, a recent report on the state of local advertising found.
Revenues near $150 billion in 2017
According to forecasts from BIA/Kelsey, a local advertising consultant firm, revenue derived from local media advertising is expected to rise from $132.5 billion in 2012 to $148.8 billion in 2017, translating into a compound annual growth rate (CAGR) of 2.3 percent.
The report also suggested small businesses may want to seek out further help in employing local search strategies, because they're not the only ones trying to benefit from the rising influence of local. National brands spent $42.5 billion of the total local spend in 2012, 32.1 percent of the $132.5 billion, and look to spend upwards of $51 billion in five year's time.
"Local media has become a key channel, not only for local small businesses, but for regional businesses, national franchises and national brands targeting locally," said Mark Fratrik, vice president and chief economist for BIA/Kelsey. "This is clearly seen in our tracking of market shifts in mobile, social, search, promotions, coupons and deals, native ads and sales transformation."
Overall, digital strategies continue to earn a greater share of local advertising revenue, underscoring the effectiveness and growing popularity of such marketing channels. Digital media-based local advertising accounted for 17.4 percent of revenue in 2012, but is projected to increase to 27.6 percent by 2017.
Digital media continues to increase its share of total local media revenues, growing from 17.4 percent in 2012 to 27.6 percent in 2017.
However, the rise in digital revenue comes at the expense of declining profitability for traditional local media channels, revenue from which is expected to decrease to $107.6 billion in 2017 from $109.4 billion in 2012.