Real estate is big on the Web, and getting bigger.

While impressive, that’s a far cry from the 40 percent share of Real Estate advertising that newspapers command in print today. Borrell expects newspapers to lose an additional 33 percent of their market share in real estate advertising by 2010. Borrell notes that the size of the increase in Real Estate’s overall online advertising doesn’t begin to gauge the Internet’s huge impact on the business since it is so much cheaper and more efficient.

But there is no reason that newspaper Web sites shouldn’t be the big winners with this vertical. Of all the verticals, its the one that lends itself best to all the things newspaper Web sites can do well: localization, multimedia, Web 2.0 stuff, and promotion.