Tuesday, January 12, 2010

Locals Only: Don't Forget The Place Your Customers Call Home

**Don't Forget The Place Your Customers Call Home**

**by Larry Small**

A new year offers new opportunities for local search providers and
small business customers to reevaluate their advertising strategies to
reflect the latest consumer usage trends and economic realities.

On December 31st, Yellow Pages directory publisher Idearc emerged
from bankruptcy
<http://www.insideyp.org/idearc-starts-2010-fresh-with-a-new-supermedia/archives/>
with a new name, SuperMedia, and a fresh understanding that new
initiatives in the online and mobile local search front—in addition
to its existing print offerings—will help drive its future. And with
optimism, the company's chief executive, Scott Klein, told Reuters
<http://www.reuters.com/article/idUSN0419957620100104?type=marketsNews>
that his operations in rural, Midwestern and some key major metro
markets are starting to show signs of improvement as the economy
begins to recover.

Along with many others, I have predicted that 2010 will be shaped by
new advances in local online, mobile and social search
<http://searchengineland.com/predictions-for-the-changing-local-search-landscape-in-2010-31547>
—and SuperMedia's new commitment to those platforms is evidence
that changes are already underway. But as Klein's comments suggest, I
think that geography will also play an important role in determining
how providers and advertisers plan their advertising campaigns this
year.

To be successful, directories and advertisers will need to adapt
their strategies not only to fit new widespread trends in how
customers are searching for local business information, but also to
reflect the speed with which specific communities are changing their
search patterns and seeing signs of economic improvement.

When evaluating advertising campaigns, everything is local. Here are
some things to consider:

Urban vs. rural technology: Broadband, WiFi and high-speed mobile
penetration, the availability of local-based mobile applications, and
a variety of other technological advancements afforded to more
populated communities are creating differences between how urban and
rural communities search for local information. While a recent study
by Forrester Research
<http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=120085>
showing rapid growth in the proportion of U.S. mobile subscribers
owning smartphones—up to 17% in 2009 from 11% in 2008—may help
shape advertising decisions in major urban markets, it won't have the
same impact in smaller markets. An innovative mobile campaign in New
York City, for example, will likely not be effective in a small
Midwestern town where high-speed mobile internet is not yet available,
and the cost-ratio too high to make sense.

Age and gender: As local-social search gains ground this year,
providers and their advertisers will need to take into account that
younger communities are more likely to adopt those tools than areas
with, for example, a high number of retirees. But they'll also need to
keep a close eye on how social media adoption rates are changing. A
Sept. 2009 study by Inside Facebook
<http://www.marketingcharts.com/interactive/facebook-audience-grows-86-in-september-10647/>
found that while U.S. females aged 18-24 remain the highest share of
users on the popular social media site, almost half of U.S. Facebook
users are now older than 35. In fact, the fastest growing demographic
percentage-wise is users over 45. Keeping a close eye on age and
gender usage rates nationally, as well the demographic makeup of those
communities being specifically targeted by advertising, will be
essential in developing a successful campaign.

Ethnicity: The ethnic makeup of individual communities plays an
important role in how different areas are conducting their searches.
Recent comScore data show that the Hispanic online population, for
example, is expanding 50% faster than the overall U.S. population.
Additionally, a July 2009 Pew internet research poll
<http://www.pewinternet.org/Reports/2009/12-Wireless-internet-Use.aspx>
found that Hispanics were more likely than other ethnicities to have
used the mobile internet or accessed mobile content. Therefore,
developing online and mobile local search capabilities that cater to
Hispanic communities—whether through language, culture, etc.—is as
important as creating those tools for the general population.

Print directory usage: Different communities have different usage
patterns for print directories, which has a direct effect on how to
best implement the hybrid model. With so much attention focused on
online and mobile local search, a small business owner with stores in
major Florida urban areas, for example, might consider changing his
strategy to advertise more on those platforms. However, the owner must
be mindful of how each of his individual urban markets conduct local
searches. In Miami, weekly usage of print Yellow Pages directories is
limited to approximately 21% of consumers because of its high level of
Spanish-only speakers, according to a 2008 industry usage study
conducted by KN/SRI. However, in Orlando, more than double that
number—46% of consumers—use print directories on a weekly basis.
With that in mind, the small business owner might adopt a varied
approach to reflect usage in each of those individual markets.

The state of the economy: As Klein mentioned, certain U.S.
markets—both urban and rural—are starting to show signs of
economic improvement. Tying new advertising campaigns to growing
markets will be essential in delivering the highest return on
investment.

What's the take home message? Our industry should never stop being
innovating—growth in 2010 will undoubtedly be driven by our ability
to develop new and exciting online and mobile capabilities. But at the
same time, we should always remember our commitment to a hybrid
approach as a means of reaching as many of our unique consumers as
possible wherever they call home.

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

Larry Small <http://searchengineland.com/author/larry-small/>
brings nearly three decades of Yellow Pages and local search
experience, as Director of Research for the Yellow Pages Association
<http://www.ypassociation.org>
(YPA). Larry spearheads and advises on all association-driven
research activities for the industry, as well as blogs about the
industry on the InsideYP <http://www.insideyp.com>
blog.

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