This is according to new figures supplied to eMarketer by Piper Jaffray, which forecast that local expenditure will total $12.34 billion (£7.53 billion) this year, compared to the $11.39 billion being put into nationwide initiatives.

 

The research company predicted that the gap will continue to widen over the next three years, with the figures for 2013 expected to be $19.18 billion and $14.47 billion respectively.

 

Expansion onto the web by small businesses was cited as a reason for the projected increase in spending, with lead generation said to be the main aim of conducting local advertising campaigns.

 

It also predicted that the mobile marketing segment will see rapid expansion, stating spending on mobile paid search in the US will climb to $1.74 billion in 2012 - almost double the $630.6 million expected for 2011.

 

In related news, Econsultancy recently published statistics showing that over one-third of firms are not satisfied with the conversion rates they are achieving through their online marketing strategies.

 

A total of 39 per cent said they feel they can improve further in this area.