Online marketing is growing more quickly on a local level than it is nationally in the US, according to a new study.

Borrell Associates claims that American spending on local online marketing will reach $7.5 billion (£3.8 billion) in 2007.

This represents a year-on-year growth rate of 31.6 per cent, compared to a 20 per cent online ad growth on a national level, MediaPost reports.

It also indicates that the local internet marketing sector has been reinvigorated, after 2006’s growth rate of 19 per cent represented a deceleration from 2005’s booming 80 per cent.

The study also reveals that newspapers will be the dominant force in local online marketing in the US this year, with 35.9 per cent of the channel.

Following this are internet companies such as Yahoo! and Google with 33.2 per cent of the market, while Yellow Pages operators are forecast to take an 11.7 per cent share.

Back in the UK, Utalkmarketing.com revealed last week that that 91 per cent of firms in the UK will increase their online marketing spend in 2007.

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