Issue: New Data
Released Amid Rapidly Shifting Local Ad Landscape
News: The Kelsey
Group and ConStat, Inc. have completed Wave VI of the Local Commerce MonitorSM
(LCM), which measures how local small and medium-sized enterprises (SMEs)
in the United States allocate their advertising dollars. The annual study
offers data and findings from 14 major and secondary markets, including
Atlanta, Boston, Chicago, Houston, Los Angeles, New York and Seattle,
Yellow Pages, both
print and Internet, was again the most popular local medium, with 77 percent
of local SMEs indicating they use it to advertise. Another significant
LCM finding is that search-engine advertising (pay-per-click and/or paid
inclusion) has come from out of nowhere to attain 17 percent utilization
by local SMEs today higher than Internet Yellow Pages (IYP).
Coinciding with the
release of these data was a flurry of announcements that underscore the
intensity of activity in the search-based marketing space:
- U.S-based FindWhat.com
and U.K-based Espotting are merging to create a more viable rival to
Overture and Google's performance-based advertising programs.
- Google has teamed
with Web-hosting provider Interland to offer incentives for small businesses
to use Google AdWords.
- Google has also
launched AdSense. Designed to expand distribution of Google's pay-per-click
listings, the program offers context-specific advertising on third-party
- Microsoft/MSN is
devoting more resources to improving its search functionality and reliability.