Kelsey Group: Vertical, Classified Ad Revenues To Top $14 Billion
Vertical ad spending (including buys in home services, health care and auto repair) will soar from just $100 million in 2007, to $5.6 billion in the next four years. Meanwhile, Kelsey Group analysts said spending on online classifieds will top $9 billion by 2012.
According to Kelsey Group program director Peter Krasilovsky, online classifieds and vertical ads have been overshadowed by growth in search, display, e-mail and lead generation--but as the market continues to fragment, marketers' budgets will start to shift (both off- and online) out of necessity. "We're seeing an accelerated effect from fragmentation, which will draw ad revenue from traditional media toward online vertically targeted solutions," Krasilovsky said.