by Paul Jahn - Localmn

Ever since Google debuted their local targeting pay-per-click advertising program in October 2003, Internet marketers have been contemplating if "local search" is an overdue reality or a fad that will blow away. The concept is simple enough. You market your website to attract searchers to buy from your local, physical business location.

How new is local search, or local Internet marketing? Have people just started using the web to find local businesses?

No.

Do people often go online to find accountants, dentists and coffee shops?

Yes.

Have local search engine results always been relevant?

No, but they're definitely good right now.

The demand for local search has always been there. The supply has not. A few years ago, you and your local business website could try to compete nationally on search engines, but would most likely spend money on Internet Yellow Pages (IYP) ads and traditional marketing efforts. As we pointed out in our last November article, search engines, IYPs and local online portals such as Citysearch are now working together to provide a better local search experience.

For a long time, IYPs have provided the most supply for local purchases. A recent study by comScore Networks and the Yellow Pages Association™ says that IYPs are still more efficient than search engines when it comes to producing actual local purchases. It doesn't mention that people who use IYPs are most likely further in the buying cycle than people who use search engines (more on that below).

Search Engines

In 1998, you might have used a search engine to find a local dentist and found the top 10 results full of online casinos, sex and gambling sites. Why? It was then easy for people to manipulate search engines. These engines have come along way since then, and for the better.

Feel free to see the results for Minneapolis Dentist in Google, Yahoo or MSN right now. The results are much more relevant. Some major search engines have known about local marketing for a while. Both Google and Yahoo show some local results over their main results. Their products...

Google Local
Yahoo Local

Pay-Per-Click Advertising

As mentioned earlier, Google helped create the "local" buzz in October 2003 by debuting their local targeting pay-per-click program. Before that, there was really no way to use pay-per-click advertising to ONLY a particular local market. The best you could do is include your city/region name in your ad to SUGGEST to people that you do business in a particular area.

In June 2004, Overture introduced "Local Match" (now Yahoo! Local Sponsored Search). This allows you to advertise online locally whether you have a website or not.

Since then, others have followed. Ingenio introduced pay-per-call services and partnered with 2nd tier Internet advertising company Findwhat, and most recently, AOL. Kanoodle introduced Local Target. They hope to recruit partners to help you advertise with local news and content pages.

Internet Yellow Pages (IYPs)

IYPs have been around the longest. They started appearing soon after the Internet was growing in popularity. At the time, they could easily sell an online listing. It was basically THE way a local business could be mentioned online.

The comScore study mentioned above implies that IYPs produce more purchases per capita than search engines. This is probably true. Many consumers think of IYPs as a sophisticated online alternative to the big yellow book they get every year. These consumers are more than likely further along in the buying cycle. If you need an emergency plumber, you can find one in the yellow pages. If you're looking for an income tax accountant, you can find one in the yellow pages.

There are different IYPs out there. Some of them are known by name in your geographical area, and some are nationwide based. It can be worth it for branding or if you have a sudden "call to interest" message you want to send. This has always been the selling point for yellow pages.

Interchange's Local Direct program enables independent IYP companies such as BDlocal with aggregate yellow pages data, allowing them to offer additional premium advertising services.

Traditional and Print Marketing

Local businesses haven't always been seeking customers who search the web for them. Like mentioned above, although the demand for local Internet marketing isn't new, the supply hasn't always been there. Ever since local businesses started appearing online, you have heard and seen radio-TV commercials mentioning their URL or website name. As well, online information became visible on business cards, letterheads and print brochures. This has been a branding technique used to provide additional options for their potential customers to see them.

Word of Mouth

There has always been word of mouth marketing, arguably the most sought after way to attract customers both offline and online.

Future of Local Search and Localized Internet Marketing

Since the birth of Internet marketing, the only constant has been change. Online branding, banner advertisements, search engine marketing, e-commerce and pay-per-click advertising are just a few areas that continue to change over time. Where will local search be in 5 years? Who knows? The demand should be there, and only time will tell which new local marketing programs develop and which current programs continue to succeed and improve.

Most likely, the successful programs will be the ones that help integrate both online and traditional marketing. It can be important to get local visitors to your site, but it's more important to get local customers to your location.

Paul Jahn works for Localmn. Localmn customizes your local Internet marketing strategies depending on your needs and budget. To find out more on your small business web possibilities, send us an email.

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