Piper Jaffray: 425 Page Report on All Things Internet
Piper Jaffray recently issued a 425 page (that’s right) report on all things and trends Internet. It’s called “The User Revolution: The New Advertising Ecosystem and the Rise of the Internet As a Mass Medium.”
Here are some tidbits about the local advertising market:
Based on our discussion with various industry sources, we believe local search already comprises between 10%-30% of the queries. Our 2006 Online Media Survey indicated that local search was the second most popular online service.
Piper pegs Internet local search — here defined as “IYP, local search, and classifieds” — at $4.5 billion today, which is 12% of the total local ad pie now. The U.S. market potential (over 10 years) will be $25.9 billion (a healthy 575% growth over the next 10 years) according to the investment firm.
Piper believes that local search can eventually be 50% of all search volume (up from about 25% currently according to our estimates), assuming improvements in data quality, completeness, and several other upgrades and innovations.
Accordingly, this further reinforces our views that searching online will be done more on a local basis and that smart companies are shifting their offline budgets to online offerings.