Search Engine Marketing Convention in New York drew thousands of
attendees eager to hear the latest news in online search, one of
the hottest topics in marketing today. Why is it so hot?
Consider this simple statistic: at the forum on local search
marketing, the combined value of U.S. sales driven by the
various search engines represented on the panel was estimated to
be $40 billion annually. The estimate may be wildly innaccurate,
but whatever the true figure is, one thing is certain: it isn’t
pocket change. It’s big, big business.
The general consensus at the convention held that local search
(a term that actually covers more than just search engines) is
the big prize for companies seeking a portion of the dollars
that are increasingly expected to be spent by both national and
local advertisers aiming at local markets.
The reason that companies large and small are salivating at the
prospect of these local online ad dollars is that consumers are
increasingly using the Internet to search for local goods and
services. In that sense, consumers are leading the charge in
this new direction – the search engine and directory companies
are trying to catch up with what is already an established
trend. One often quoted statistic, courtesty of Yahoo (who, with
their amazing database resources ought to know) is that at least
30% of all searches in a given month are for local goods and
services. What’s more, the trend is increasing. It’s easy to
understand why consumers are searching this way – the Internet
as a medium is inherently more capable of serving up extensive,
and often interactive data in response to a query than any other
media.
At this point in the development of the Internet, it’s unclear
how the online marketing messages of millions of local
businesses will be served up to the end user. Currently, most
small businesses do not even have a web presence to which
consumers can be directed. Then there is the question of
directory versus search – how will the consumer look for the
information, how will it be delivered, and most importantly,
what will it cost the advertiser? Today, a number of different
models are competing in a race to offer the best model both from
the view of the advertiser and the view of the end user. Google
is beta testing a search method that serves up local results,
which will of course tie in with Google’s Adwords program (paid
little box ads next to search results). Yahoo is blurring the
lines with their new offering, which is a “paid inclusion” model
that then ranks a site based on relevancy, and, as if that were
not complicated enough, blends it with a “pay per click” model.
Verizon is unveiling similar “blended” strategies through their
Superpages directory, and other players are rushing to market
with their plans and programs.
What to do while the major players sort out the field? If you
are a website owner with a local focus, now is the time to start
getting familiar with the new opportunities: check out Yahoo’s
new “paid inclusion” program (offered via Overture); Citysearch
is worth a look; Google is beta testing a local version of Ad
Words; and the Internet Yellow Pages from Yahoo and Verizon are
both worth evaluating. And don’t forget to optimize your site
for search, through appropriate use of keywords plus geographic
modifiers. Beyond the website owner, the boom in local search
affects anyone involved in local commerce. Whatever your role,
it’s important to be aware that an economic sea change is taking
place. Remember that consumers make most of their purchases
within 50 miles of home. Like politics, most business is local.
Any major change in how consumers shop for those purchases is an
important economic event.
About the author:
Neil Street is co-founder of Small Business Online, based in
Wilton, CT., a website design, management, and promotion company
dedicated to the Internet needs of the small business. His
website is at http://www.smallbusinessonline.net Send email to
neil@smallbusinessonline.net He can also be reached at
(203)761-7992
