Classifieds dominate local ads growth online

CNET News.com: "Online local ad spending in the U.S. is expected to see steady growth in 2005, but will be dominated by classifieds, a new study has shown.
Local ad sales on the Net will rise 26 percent to $3.2 billion in 2005, according to a JupiterResearch report released Wednesday. The rest of the decade should see 11 percent compound annual growth, up to $5.3 billion. Approximately 70 percent of that revenue will come from classifieds.
'Outside of classifieds, local ad spending online remains relatively immature,' JupiterResearch analyst David Card said in a statement. For online publishers and networks, better opportunities lie in national advertisers that target local audiences rather than local businesses, Card said. "