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Analysts predict increase in vertically-targeted online marketing

Vertically-targeted marketing and online classified ads will command an increasingly large segment of the market, an industry expert has predicted.

Analysis from the Kelsey Group suggested that verticals will emerge as a key driver of online advertising by 2012.

The Kelsey Group's program director, Peter Krasilovsky, explained: "Vertical businesses are harnessing the network effects of the Internet, much like Expedia and others did for travel in the late 1990s.

"We're seeing an accelerated effect from fragmentation, which will draw ad revenue from traditional media toward online vertically targeted solutions."

In fact, the research suggested that the US interactive classified and vertical share of online advertising will grow from 18 per cent in 2007 to 24 per cent by 2012.

It added that revenues from interactive classifieds and verticals will grow from $3.9 billion (£1.9 billion) to $14.7 billion (£7.3 billion) during the same forecast period.

Recent reports suggested that online verticals would increasingly focus on niche areas. ADNFCR-1536-ID-18563478-ADNFCR