With $1.3 billion spending in 2006, representing only 7.9% of the total $16.7 billion in US Internet ad spending for the year, local online advertising remains more promise than fulfillment. While marketing factors will drive significant this year and next, the boom in local online advertising is not here yet.

Just as paid search contributes over 40% to the total US online ad spending market, so it is for local online advertising, where paid search provides over 55% of the local total. These are notable figures, especially when you factor in the relative immaturity of the local search market.

But make no mistake, the boom has not hit yet. Even when local online ad spending jumps by nearly 53% next year to $2.0 billion, that will make it not quite 10% of the 2007 estimate of $20.3 billion for total online advertising.

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