Wednesday, December 16, 2009

Locals Only: Predictions For The Changing Local Search Landscape In 2010

**Predictions For The Changing Local Search Landscape In 2010**

**by Neg Norton**

To many of us, 2009 couldn't end soon enough. But today we have
fresh optimism about what's in store for 2010. I sense a cautious
sense of hope with everyone I've spoken with that the prospects for
next year are stronger for local search providers and our advertisers.
Since much of local search is driven by small business, I'm
heartened by some recent statistics from the National Federation of
Independent Businesses (NFIB) that show a slight uptick in key small
business metrics: sales, earnings, credit and optimism
<http://www.nfib.com/Portals/0/PDF/sbet/SBET200911.pdf>
. If those positive signs gain momentum, 2010 promises to be an
exciting year—but not without its challenges.

Looking to next year, I'd like to share some predictions on market
trends that will impact those small businesses looking to harness
local search in order to play a part of our national economic
recovery. If local search providers and advertisers keep these trends
in mind, I think they will ultimately come out ahead in the local
search race.

Prediction 1: Mobile will drive local search growth

BIA/Kelsey predicts that mobile local search ad revenues will grow to
$130 million by 2013, and that mobile local searches will increase to
35 percent of all searches by 2013. Amid this growth, we're seeing
significant innovation on the mobile front, from new Yellow Pages
iPhone apps to mapping technologies that deliver relevant local
information to users on the go.

In 2010, advertisers will be faced with a growing set of options, and
many will have limited knowledge of how to break through. The
providers that will do well will be the ones who can make sense of
this quickly changing platform and deliver programs that offer quality
sales leads to advertisers.

Prediction 2: Local search providers will vie for social

The truth is that no one owns social local search yet, but all the
major players have an eye on getting there. Here's why: Neilsen
reported that ad spending at top social media sites increased 119
percent over the last year, and the share of social media ad spending
to total online spending doubled to 15 percent in 2009.

Advertisers know that significant trust exists within online social
communities and that social networks have become a crucial way in
which we relate with others. The question in 2010 will center on how
we can authentically tap into those networks to serve local business
information to consumers looking for it.

AT&T has said it will launch its answer to this question in 2010, and
SuperPages has a Twitter search tool available right now. Praized
Media launched Calgary.com this fall as a beta program and is hoping
to expand it additional regions. I can only imagine where we'll be a
year from now.

Prediction 3: Local print advertising will decline but won't
disappear

Many have predicted the death of print media for quite some time. I
don't believe that print media will disappear anytime soon, but
certainly usage is changing. Media fragmentation is causing a gradual
decline in the quantity of print Yellow Pages references, for example,
although the quality of those references is still very high. Quite
frankly, the perception of the usage decline in the printed Yellow
Pages far exceeds the reality of what is actually happening.

For advertisers, this means taking a close look at advertising spend
and evaluating their print investment. Those who are too quick to
abandon it may see a reduction in qualified sales leads, while those
who aren't open to some of the newer platforms available might be
missing a big opportunity.

Prediction 4: A hybrid marketing approach will win

My colleagues spent a good part of this year talking about the hybrid
model that they've deployed in their sales teams. Yellow Pages sales
representatives, for example, are now armed with portfolios of options
ranging from owned products to partner products. And in this way, have
essentially become advertising consultants to small businesses.

Advertisers should think about taking advantage of these kinds of
information resources by devoting an hour or two to thinking through
the options out there and devising a strategy that spans the
appropriate media for the business. It's more important than ever to
consider a hybrid approach because today's consumers get information
for a multitude of places before making a purchasing situation. And
that fragmentation will only continue to grow as we head into 2010.

Opinions expressed in the article are those of the guest author and
not necessarily Search Engine Land.

Neg Norton <http://searchengineland.com/author/neg-norton/>
is President of the Yellow Pages Association
<http://www.ypassociation.org/>
(YPA), a trade association that advocates on behalf of a print and
electronic Yellow Pages industry.

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