Today’s Media Life talks about this week’s release from Borrell Associates that shows local search revenues will jump 31.6 percent in 2007. What is most interesting about this is Borrell Associates’ prediction that local Web advertising is going to explode this year because of paid search and e-mail ads.
Coincidently, next week at the Directory Driven Commerce 2006 conference, The Kelsey Group will present data that show the same trend — e-mail marketing is increasing as an advertising vehicle for small businesses. We were pleasantly surprised that e-mail marketing continues its climb up the radar screen; while still small in comparison to other media, it is a medium to watch. Not only are more businesses trying e-mail marketing, but they are also spending more money on it. At the conference we will present the findings of the Local Commerce Monitor IX and will show what media businesses are using, where they are spending their dollars and what is most effective.
Borrell Associates indicates that the advertisers are attracted to local Web advertising because it is trackable and small businesses can get a handle on their return on investment. E-mail marketing is a substitute for direct mail and saves money. Plus, we believe it is easy to turn on and off and use as little or as much as needed — no long-term commitments required.
The article indicates that the businesses most likely to invest in local Web are real estate agents, car dealers and restaurants, in addition to several others. The Kelsey Group Consumer Omnibus Study, which will also be presented at DDC, will explain how consumers get information for real estate transactions and used car purchases. It is interesting that there is a gap in what buyers are using for their information and where sellers are advertising. In addition, there is a definite generation gap. The younger generation definitely uses different types of media than the older ones, which has implications for industries such as Yellow Pages and newspapers.