In an age of multinational corporations, huge chain stores, and powerful online retailers, it might be easy to assume that small mom-and-pop operations stand little chance of turning up in online searches. Often, they have trouble surviving in their own neighborhoods. But according to recent research, local businesses are spending increasing amounts of money on paid search advertising. In some markets, the vast majority of such ads are paid for by local businesses. According to Borrell Associates, in 2005 local shops in the UnitedState poured $420 million into paid search ads. That amount should more than double in 2006. Local advertisers bought 36 percent of all text ads on Google and Yahoo results pages—up from 5.6 percent 18 months ago. The majority of advertisers were real estate agents, buying nearly half the links on city keywords, the firm reports. In Tampa, Florida, for example, local agents were behind as much as 80 percent of sponsored links. According to The Kelsey Group, by 2010 the total local advertising market in the U.S. will hit $125 billion, up from $97 billion in 2005. The group predicts U.S. online advertising revenue will hit $27 billion by 2010, up from $10 billion in 2005.

SOURCE: Borrell Associates, The Kelsey Group

Mobile Games Struggling

Despite an increase in the selection of games available to mobile subscribers in recent months, carriers aren’t seeing a jump in the number of people downloading titles, according to research firm M:Metrics. Between 5 million and 6 million mobile subscribers download at least one mobile game each month, a number that has stayed steady over the past year. Since September, phone companies have added an average of 59 titles to their offerings. At the same time, they’ve increased prices for game subscriptions by 22 percent. Motorola’s RAZR phone emerged as the dominant mobile gaming phone. More than 305,000 mobile gamers reported downloading a game during the quarter ending January 2006. According to an M:Metrics survey in January, 34 percent of U.S. mobile subscribers sent a text message. Meanwhile, 10 percent retrieved news and information and another 10 percent purchased a ringtone.Males under 25 continue to be the main consumers of mobile games, making up 30 percent of the market. They are twice as likely to download a mobile game as other mobile users.

SOURCE: M:Metrics

Digital Cameras Set to Break Records

While growth in the U.S. digital camera market is expected to slow by the end of the decade, right now it shows no signs of letting up. According to the NPD Group, the market is predicted to hit $6.8 billion in 2006 and sell a record-breaking 29.5 million units. That amounts to an 8 percent increase in revenue and a 17 percent jump in unit sales over 2005. NPD predicts sales will ease in 2007 as sales of point-and-shoot cameras hit a peak. They are estimated to make up an average of 70 percent of the market’s revenue over the next four years. The typical selling price of these cameras will drop to $182 this year, down 7 percent from 2005. While point-and-shoot cameras make up about 90 percent of unit sales, NPD predicts digital single lens reflex (DSLR) cameras will comprise nearly 34 percent of revenue by 2010. In 2006, U.S. sales of DSLRs could hit $1.7 billion, up 7 percent from 2005. That could amount to unit sales of 1.8 million, a 54 percent jump from 2005. The average selling price for those cameras is expected to decline 30 percent this year to $942, hitting $737 by 2010.

SOURCE: NPD Group