Local Search Advertising will Rebound After Sharply Diminishing this Spring

While during the pandemic, consumers have reduced the number of local searches on the different search engines causing the local search advertising to drop dramatically, data predicts that in the upcoming Spring it will sharply go up.

US Google Shopping Ad Performance Metrics: Local Inventory Ad (LIA) Click Share, Jan 1, 2020-Sep 30, 2020 (% of total)

Some formats, such as local inventory ads and Google Map Ads, dropped between 75% and 100% in Q2, and they have still not fully recovered, according to Merkle data published in October.

Several factors should lead to a recovery in local search in 2021. First, the mobile search market should be strong. We expect US mobile search ad spending to increase by 22.4% to $44.32 billion. Second, as lockdowns lift and consumers begin shopping again, they will look for alternatives—most likely nearby (or online).

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