Local Online Ads To Double In 2008

Search Engine Land quotes a Borrell Associates study of local online ad sales projections for the upcoming year.

"Local search is expected to grow from roughly $2.5 billion currently to $5 billion in 2008. Borrell expects local video to roughly triple from just over $400 million today to $1.27 million next year".

Other highlights from the Borrell Report;

• The three largest categories are Autos, Jobs and Real Estate.
• Dramatic rise in video for local business.
• Average local business spend was $299 "per location" in 2007. (Range, $18,000 high end to about $100 low end).
• Independent online ad specialists will be in high demand.

All Major Search Engines Use Geo Locators

We know this but the local merchant doesn't. Local search guru Greg Sterling summarizing his recent Search Marketing Now webcast includes this question and answer from the webcast.

Q: If I search for a "dentist" with out any geo qualifiers, it is my understanding that the search engines now use the IP of the router to deliver results (businesses) within that region. True?

"Yes, all the major search engines are using IP targeting to serve ads when they can sufficiently identify the computer's location and they "infer" the user is conducting a local search. It's a fairly safe bet that queries such as "dentist," "lawyer," "plumber" or "sushi" are local because they are typically "fulfilled" locally. Google, for example, will serve a mix of local and non-local ads in such situations. And on Yahoo's Panama platform, local ads, with local content, will potentially get a higher quality score than more “generic” national ads."

The webcast was informational and well worth an hour spent. Honestly Greg could have filled 2 hours easily I feel. So much happening in this space.

I highlighted this particular question because I when I present this issue to prospective customers they are generally surprised and often express doubt.

Local Online Advertising Growing At 31% Clip

Borrell Associates published data on the growth of local online advertising.

" Local online advertising, approaching $7.5 billion, is growing 31.5%, but traditional media companies are struggling to keep up with Web sales. Some have seen growth slip below 20% as they scramble to maintain share. We gathered revenue data from over 2,800 local online media properties for this report." Purchase full report.

More coverage at The Kelsey Group Blog

(Image: Borrell Associates)

Next To Email Local Search Most Popular

Piper Jaffray & Co. 2006 Online Media Survey

Social-Local LocalGuides

LocalGuides.com hit the ground running with the kind of fanfare you can't buy, (really), here, here and here wow!
Now that the heavy hitters introduced the product lets have a look at the site.

I see it as a combination of YellowBot, Yelp and Bebo or MySpace. I'm still trying to figure it out and I confess confusion. I opened an account and searched from the home page for "Fresno" and it brought me to a page with a brief city bio and some sites they call "starter guides."

The starter guide for Fresno Furniture Shopping sent me to a page with lists of Fresno furniture stores on a portal like page. The page results appear auto-generated and while the algo did some decent guessing it stumbled on one of the sub-categories "dining sets." When clicked it sent me to a popular Asian-fusion restaurant here in town.
I understand the intent of Local Guides is to have humans (guides) intercede and make every category relevant but for now at least in this particular case there's a bug.

The local search results are provided by SuperPages which is fine but when you click a link from a search result you travel to SuperPages.com to get to the business information.
Example; The restaurant search results for Fresno brought up a comprehensive list of Fresno restaurants but when I clicked Toledos Mexican Restaurants I was sent to SuperPages instead of the restaurants website.
This is unlike any local search directory or IYP I've used and may turn people off with the extra step. It gives the site an appearance of being a proxy site for SuperPages.

If they could get the kind of user base Yelp enjoys the site could get traction. My concern is the steps required to get information. I may not consider it a first choice local search site like Local.com or YellowBot.com and it's not a pure review site like Yelp so what will drive me to use it?
I don't have an answer. AmericanTowns.com, DiscoverOurTown.com, Outside.in and others in that genre have failed so far to persuade me to visit often.

Best wishes to the crew at LocalGuides. It will interesting watching their progress.

Maps Are For Travel, Not Local Search

Chris Linnett writing on SEL today offered the thought; "Imagine Local Search Without Maps". I have. Not daily or even weekly, well maybe weekly or whenever I use Google Maps.

Chris writes;

"........Similarly, I may need someone to repair the lock on my front door that is old enough to qualify as ancient. Well, local search is about discovery as well. I do not need to see where all the locksmiths are on a map; the locksmith is coming to me. But by providing me the tools to narrow my search of locksmiths by such variables as services offered, brands of locks, pricing, customer feedback, and more, I may be able to discover just the one my neighbors rave about for older locks..."

I don't need to know where the plumber starts his day. I don't need to know where the tree trimmer keeps his chipper.
And it's not just me. When I present Google Maps to clients I get quizzed to the importance of being listed there. Typically they say "do people really use this?" I assure them people do.

I think Yahoo! has it about right. Take a look at how Yahoo! treats maps as related to local search. Try the same search on Local.com. Note how the maps on both sites are tucked away nicely on the side. My new favorite local database is Yellowbot.com, it's clean and the data, mostly supplied by Localeze.com is fresh. The map bears the confusing* "got peeps" slang under the nicely sized map on the right side but otherwise this is how a local search site should look.

Confusing as in how do I convince an attorney client this may be a site to keep an eye on for advertising purposes down the road. Most professionals don't follow contemporary street slang. The Urban Dictionary defines "Got Peeps".
It's not pretty!

Google + Box For Business And Stocks

Small business will be happy to know if your address is correct and listed on Google you may soon see a "Plus Box" asociated with your listing.

Google Blog explains;

"Whenever you see the plus box icon - - click on it to see the additional rich data expand below the original search result. With Plus Box, you'll get a visual snapshot of related information, so it is faster and easier to find exactly what you're looking for.

"You won't see this feature yet for all businesses, but we're working hard to increase its availability. If you're a business owner and would like to see something like this associated with your website, here's how to get your information to us."

Google points to this page and how the plus box looks attached to a restaurant listing.

Are you listed on Google Maps, their local search engine?

Google Could Dominate Local, Why Don't They?

Google is in a perfect position to put a grip lock on local search. Greg Sterling's thought provoking post offers in part;

"Google is really in the driver’s seat on many fronts right now. Turning to local, the company recently enhanced it's local one box presentation of results.

Google is not the best local application online by any means. (Yahoo! Local, Ask and Yelp, for example, are better.) It has taken some steps to improve the user experience but it could certainly do a great deal more (e.g., “sort by rating,” “click to compare businesses,” etc.). One wonders why not? Maybe Google is distracted by all the initiatives going on there, doesn't feel it needs to upgrade the application and/or doesn't want to threaten its partners too much.

Whatever the reason, the company is not doing all it could in local. But Google is probably now at the peak of its market dominance (I could be wrong of course). And with a few simple tweaks it could literally dominate local — verticals are different — because of its general search volumes.

There are also a range of things that Google could also do on the revenue side that it isn’t doing to attract more SMB advertisers. (Clearly a $3+ billion dollar quarter suggests there’s no urgency there.) Curiously it hasn’t (yet) done them either..."

I'm with Greg, it's curious why there is not more innovation, more urgency. Big "G" is the aircraft carrier in the sea of search so they don't turn quickly but their labs turn out products like Code Search and other useful (and less useful) tools continuously. Why has local lagged? Why do I have a better local search experience on Local.com with all the goofy ad noise than I do with Google Maps?

Local Search Talk, I Love It

Some interesting facts about local search from Mike Stewert of Dallas Blog.

".....In 2006, 77% of those who used an Internet Yellow Pages for at least one product/service category also used a print Yellow Pages for at least one product/service category. The point is: To reach ready to purchase consumers a business owner, as they say, does not need to put all thier eggs in one basket. Some people use print, some people use online local search (Google, Yahoo, Superpages.com, YellowPages.com, MSN, etc etc.), but most use both.

Local online marketing firm conducted an online survey this past August regarding Internet usage to find a local service business. The survey used Nielsen//NetRatings’ online panel and asked about behavior within the past 90 days. Among more than 2,800 consumer responses:

• 70% had used the Internet to search for a local service business at any point, and 46% had used the Internet to search one or more times for a local service in the last 90 days
  
• 89% found search to be “somewhat effective” or “very effective” in finding local services in their area.
• 68% said they would most likely use the phone number on the website to contact a vendor..."

He goes on to say;

"If you want your business to be found by ready to buy consumers, you need advise from someone that understands the in's and out's of LOCAL SEARCH. This includes organic search, SEM, link popularity, online directory advertising, and print advertising designs and concepts."

My thoughts on those points;

• Organic search; Important but shop carefully for SEO help, vultures lurk.
  
• Link popularity; Not so important for local as for businesses with a national intent.
• SEM; All important, trumps all other means of advertising for a local business.
• Online directory advertising; Imperative
• Print advertising designs; Still important but don't waste more than 20% of your budget on it.