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Economics of Search Marketing: The Challenges of a Scalable Local Online Advertising Model

Clickable, Inc.
Sponsored By: Clickable, Inc.
Overview: Locally placed search advertising in the U.S. is projected to grow 30 percent over the next five years, from $4.1 billion in 2008 to $5.3 billion in 2013. According to new research by Borrell Associates, this growth will be led primarily by advertising service providers that adopt scalable technology infrastructure and recalibrate their economics to allocate more customer investment to search media spend.
Published: Jun 22, 2009
Length: 22
Type: White Paper

Locally placed search advertising in the U.S. is projected to grow 30 percent over the next five years, from $4.1 billion in 2008 to $5.3 billion in 2013. According to new research by Borrell Associates, this growth will be led primarily by advertising service providers that adopt scalable technology infrastructure and recalibrate their economics to allocate more customer investment to search media spend. According to the report, many online advertising resellers and affiliates, who service local businesses, churn half their customers within a year’s time, and some lose as many as 90 percent. To address customer attrition and maximize profitability and growth, local advertising resellers must properly manage customer expectations around the purpose and value of search advertising, while delivering more meaningful ROI through better technology. This seminal research was underwritten by Clickable.

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