Google doesn’t break out its revenue for local, but we can speculate. Piper Jaffray has said that 10 percent of Google’s revenues are attributable to “geotargeting,” per Greg Sterling. Based on Q2 earnings of $2.46 billion, that would mean Google grossed about $240 million from local in Q2, up from $225 million in Q1.
We might cut Google’s figure a little for the U.S. Since Google makes 5 of 6 of its dollars in the U.S., Google’s U.S. figure for local might be closer to $200 million in Q2, or $800 million per year. If Google takes in 60 percent + of all the local search dollars in the U.S., as Borrell Associates estimates, that would make the entire local search category worth over $1.3 billion in 2006 (pretending that every quarter is the same).
Take out partner shares and whatnot — perhaps 60 percent of the pie — and Google’s net still ends up with $80 million from local in the U.S. in Q1, or close to $320 million per year.