The Kelsey “Drilling Down on Local� conference has started. John Kelsey opened with a speech that noted 80 percent of all purchases are made with five miles of the home, and more consumers are turning to the web for local shopping information. It’s a strong market growing stronger. Video is going to be an essential part of local web advertising.

Neal Potachek and Matt Booth from Kelsey then shared 7 predictions for 2007 through 2011.

Prediction #1: More than 50 percent of small business advertisers will include vertical or specialized directories as part of their advertising mix.

Prediction #1: Even though half of small businesses maintain a web presence, these businesses will have a disproportionate influence on the web over the next few years.

Businesses with web sites are growing and expanding their businesses. Revenue generation trumps businesses without web sites by a factor of two to one.

Prediction #3: Video will be integrated into small business web sites.

Sixty percent of consumers say they have watched an online video ad, and 57 percent who have watched moved closer to a transaction.

Prediction #4: Twenty percent of small businesses will advertise on mobile platforms.

There is a great deal of latent demand for information on mobile. Only eight percent of consumers say they have no interest in mobile web. Most people simply don’t have the access right now.

Prediction #5: Small businesses will embrace consumer and expert feedback.

Businesses that have consumer reviews online see twice as much traffic to their web sites and garner twice as many click-throughs as businesses that don’t have consumer feedback.

In the past 18 months, consumer feedback and consumer message board postings have increased 131 percent.

Prediction #6: Small businesses will embrace bundled buys.

In one survey, small business owners say that yellow page advertising reps should be able to handle all of a business’s advertising needs.

The market is becoming more fragmented and there are more advertising choices. Small business owners need more help sorting it all out.

Prediction #7: Connected software services are growing in importance.

Intuits new QuickBooks Point of Sale product is growing at a rate of 30 percent. The product allows small businesses to manage their inventory digitally and upload product information, photos and inventory to the web.