Locally placed search advertising growth

Locally placed search advertising in the U.S. is projected to grow 30 percent over the next five years, from $4.1 billion in 2008 to $5.3 billion in 2013. According to research by Borrell Associates, this growth will be led primarily by advertising service providers that adopt scalable technology infrastructure and recalibrate their economics to allocate more customer investment to search media spend. According to the report, many online advertising resellers and affiliates, who service local businesses, churn half their customers within a year’s time, and some lose as many as 90 percent. This often is due to missed expectations and a lack of return on investment for local-business customers. Critical points for local advertising success include correctly pricing advertising products for local businesses, and devoting a greater percent of that investment to media spend. Most important, advertising products and value must be easily understood by local businesses. That requires a shift from selling Web site clicks to selling measurable leads, delivered via email and phone calls. This report is available for free at Clickable.com.