If the future is local and hyper-local, then the future is search
By Kevin Ryan, CMO WebVisible
New research from Unisfair finds that for 2010, 60 percent of online marketers will be focused on new customer acquisition. The same study found that toward this goal, 75 percent of marketers will be increasing spending in social media, while 51 percent will be increasing spending in SEM and SEO. A 75 percent increase in social media marketing? Really?
Search engines are the first place consumers and business owners turn to when looking for any product or service, including those that are local—and local is the fastest growing segment of online. Marketers know this. And despite this fact, it appears for 2010, there will continue to be a large disparity between consumer purchase decisions and how marketers think they should reach consumers. Which is too bad because I think social media marketing so far is unproven.
Is social media the best way to reach local consumers? While there are lots of new technologies out there, search isn’t going anywhere. Certainly not for local and hyper-local advertising—search is the cornerstone for both—regardless of what you are reading about social media. Nobody’s Facebook page or Yelp review, or Tweet is going to trump a quick Bing or Google search for local products and services.
Every year, consumers become more reliant on search engines—we’ve all seen the research. Close to 90 percent of consumers turn to the Internet first when researching local products or services. Local and hyper-local are the future of online. However, with all the hype about social media marketing, I am seeing a clear disconnect.
For example . . .
In the last year, Scott A. Bates, Co-Owner of Christopher Scott Homes, a WebVisible client, ran a 30-day Internet advertising campaign. During the course of his campaign, Bates received 569 local visitors to the website and eight calls regarding new business. These are outstanding results for the first month with any kind of advertising campaign, far exceeding Bates’ expectations.
In 30 days, during the worst housing and new-construction-start economy since the great depression, Christopher Scott Homes (CHS) received several new leads and closed a new custom home contract. CHS spent a total of $510. This means the average cost for each person who saw the CHS ad and went to the website totaled less than $1. With that one sale, Bates paid for his search engine marketing for the next 20 years.
For local advertising, reach, operational cost, and lead generation are everything. Local may be the fasting growing, untapped, interactive advertising vertical—spending on interactive advertising beat spending on traditional advertising in August 2009. However, the businesses that make up Local aren’t interested in funding a social media widget campaign—they want results. They want a search campaign that works.
Location, location, location
If the rise of Internet search has taught us anything—like all good real estate, location means almost everything. Search has become the digital equivalent of the local market place. If your store is not located on Main Street where the buyers are actively looking, no one will come inside to buy. Sixty-five percent of online searchers expect local business results to be within 20 miles of them. The key to growth in any business is marketing where consumers are looking. While that also means local businesses should not ignore new media marketing—search is still king.
The benefits of search marketing
From my perspective, it is marketing malpractice not to advise your local media clients to spend on search engine marketing; here are three reasons why:
SEM is measurable
In this economy when every local business is closely tracking operating costs like marketing, SEM is a must. With newspaper readership dropping an average of three to four percent every six months, we know that print ads are losing value because fewer consumers see them. With SEM you can track exactly how many people saw an ad, how many visited a website, and how many called that business.
SEM can be geographically, locally targeted
If you work with hyper-local clients, they need to know that consumers like to research online and buy local. SEM allows local businesses to run inexpensive seasonal and geographically relevant advertising campaigns. Consumers searching locally for specific goods and services are predisposed buyers—they are already looking, all your hyper-local clients need to do is make it easier for consumers to find them.
SEM is flexible and predictable
SEM allows local businesses to budget advertising costs on a weekly, monthly, or quarterly basis. With search, businesses receive a steady flow of leads, enabling them to predict sales over the course of the campaign. When local businesses have a better idea of how many consumers are purchasing their goods or services, they can think about other things—like expanding their business.
As the Internet has evolved, the popularity of using search engines to help make purchase decisions has skyrocketed. Search marketing is now more powerful than ever and by far the most efficient way to get your message in front of consumers. Take it from Scott Bates—when search campaigns pay for themselves in one or two months, there is no reason why any business should fail to have Search as a primary component of their marketing budget.