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Local Advertising: How Analysts Make Numbers Up?

Sometimes, people need to get into a room and sort out their differences:

In search, says analyst Greg Sterling of researcher Sterling Market Intelligence, it is not too late for Yahoo to catch up. “Local advertising is a huge, $100 billion market, and advertisers want multiple options,” he says (USAToday.com).

Really?

Borrell Associates estimates that local companies will spend $1 billion on search this year, more than double from last year(TheStreet).

Who’s lying?

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Posted By: Ashkan Karbasfrooshan | Nov 6th

One Response to “Local Advertising: How Analysts Make Numbers Up?”

  1. Gordon Borrell Says:
    November 7th, 2006 at 8:19 am

    You’ve made a classic error — which is very easy to do — in matching up numbers that have different defintions. Mr. Sterling, who is a brilliant analyst when it comes to local advertising, was referring to “local advertising,” which is indeed in the $100 billion range. This includes local newspapers, local radio, local Web sites, local TV, Direct Mail, billboards, etc. Borrell Associates was referring to “local paid search,” which is a (very small) subset of all local advertising.

    The numbers being spouted out by research companies can be easily misinterpreted. However, it’s been my experience that, when you align the definitions and make sure you’re not comparing oranges to cumquats, they’re all pretty much within a few percentage points of each other.

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