Small businesses continue to invest in online search advertising. The most recent report from WebVisible shows that the typical small business spent $2,231 in Q2 2010, or about 1.4% more than was spent in the previous quarter. This spending level translates to nearly $9,000 spent on search annually by individual small businesses.

The WebVisible study also reveals  seasonality in spending on search. For example, small businesses in the landscaping, irrigation, and air conditioning sectors increased their budgets for search marketing between Q1 and Q2 this year.  Other business categories seem to have a more consistent search spending pattern during the calendar year. These categories include attorneys and dentists.

Analysts studying the 2010 Q2 findings noted higher spending in the following sectors:

• Jewelry
• Loans
• Mortgages
• Job recruitment

WebVisible CEO Kirsten Mangers said these increases suggest an improving economy. Mangers also reported that “conversion activity increased on almost all website actions – filling out an online form, watching a video, bookmarking a page or printing driving directions.  For advertisers this is great news.  The more options a company provides, the more actions a website visitor will take – giving advertisers multiple opportunities to establish a connection with each potential buyer.”

Small businesses typically turn to well-known companies when spending on search. According to the WebVisible findings, here’s how the major players fared in Q2 with respect to changes in market share:

• Yahoo +4 points
• Google (-2) points
• Bing (-0.6) points
• Ask (-1.4) points

[Source: Q2 Search Trends Signal Recovery. WebVisible.com. 20 Jul. 2010. Web. 3 Aug. 2010]

BELLINGHAM, Washington – Ad-ology Research announced today a new how-to website and series of video briefings, both designed to help local marketers understand and take advantage of market research. LocalMarketResearch.com and its companion video briefing Local Marketing Minute feature trends, forecasts and opportunities specific to local business.

The LocalMarketResearch.com website is updated twice daily with the latest insights, challenges and opportunities, and news for local small and medium-sized businesses. These include: Franchise owners, restaurants, independent retailers, and regional chains or companies that sell in a small number of markets.

“Not every brand is global or national, in fact, many businesses are truly local and get most of their sales from customers who are physically nearby,” said C. Lee Smith, president and CEO of Ad-ology Research. “These types of businesses often face unique marketing challenges and need specialized research to help them be successful,” Smith said.

The Local Marketing Minute video briefing focuses twice each month on one topic and how small businesses and small business marketers can use customer insights and marketing insights to grow business. They are also available for download through Apple iTunes.

Ad-ology Research announced this new resource during the 8^th annual International Economic Gardening Conference, sponsored by Ad-ology. Economic Gardening is a type of economic development that focuses government resources on the growth of local entrepreneurs and small businesses.
About Ad-ology Research

Ad-ology Research (www.ad-ology.com) analyzes key marketing and advertising trends in over 440 industries and what motivates end-customers. The company’s research is used by over 2,000 advertising agencies, media properties and product marketing departments across the United States. Ad-ology is also a research partner for the 2010 American Advertising Federation’s National Student Advertising Competition. Ad-ology Research is a division of Sales Development Services (SDS), Inc. – a Westerville, Ohio firm founded in 1989.

Editor’s Note: The Ad-ology trade name should be hyphenated in all printed references. All other trade names are property of their respective owners and do not constitute nor imply an endorsement.

PRESS CONTACT:
Michelle O’Brien
(614) 794-0500 ext. 100
pressrelations@ad-ology.com

Earlier this week, I blogged about how more small businesses are turning to social media to cut their marketing costs and increase their connection with consumers. This is just one strategy that small businesses owners plan to take in 2010 as they struggle to emerge from the deep recession. A Forbes study finds that small business owners intend to apply the difficult lessons they’ve learned in the past year. Study participants agree or strongly agree as follows:

• I’m working harder than ever to run my business: 71%
• I’m smarter about running my business as a result of lessons learned in the past year: 80%
• The challenges of the recession have made me a stronger leader: 70%

These business owners also indicate that they will spend more time strategically planning for their future. Just over half of small business owners say they will stick to their core business while 46% will pursue new revenue streams. Regardless of their business strategies, small business owners know they need to renew their focus on marketing. Here are the study results:

• We will invest more on marketing: 62%
• Marketing will focus on branding: 42%
• Marketing will focus on lead development: 48%

Study analysts noted that “[g]iven the stress the recession put on sales pipelines of many small businesses, the lack of overwhelming focus on lead generation could be cause for concern.”

But there’s another way to interpret the data. Many small business owners must wear multiple hats, simultaneously. To recover from the recession, they must streamline costs, improve efficiency and increase sales. Since nearly 1/2 of these businesses say they plan to focus on lead development and nearly 2/3’s are investing more in marketing, the long-term strategy may be just right.

[Source: U.S. Small Business Outlook 2010: Lessons Learned – A Case for Greater Optimism. Forbes Insights (in association with CIT). February 2010]

If consumers are spending more time online and the bottom line of small businesses keeps getting squeezed, many owners are drawing the same conclusion: Marketing via social media makes sense. The findings of the Small Business Success Index™ (SBSI), jointly carried out by Network Solutions® and the Center for Excellence in Service at the University of Maryland’s Smith School of Business indicate that the rate of social media use in the small business arena doubled between 2008 and 2009. Currently, nearly 1 in 4 small businesses uses social media.

Here are specific study findings associated with small businesses that currently use social media:

• Maintain a company page on a social networking site: 75%
• Social media is used to identify and attract new customers: 61%
• Maintain a network through a site like LinkedIn 67%
• Monitor feedback about the business 54%
• Expect social media to be profitable in the next year 45%

Early participants in social media are achieving near celebrity status in some professions. For example, survey participant Dr. Alan Glazier, CEO and Founder, Shady Grove Eye and Vision Care says, “I am now recognized as a thought leader in social networking within my profession and lastly but most importantly, my marketing budget has been reduced by more than 80%.”

As more small businesses turn to social media in the next year, they may encounter some of the negative aspects of this new form of marketing. Here’s what the survey participants outlined as the drawbacks of social media:

• Takes more time than expected 50%
• Allows people to criticize their business 17%
• Negative comments have hurt, not helped their business 6%

Despite the negative aspects of social media, more small businesses are expected to begin using tools like Facebook and LinkedIn because this form of marketing requires a minimal cash outlay during a time of continued financial duress.

[Source: Social Media Adoption by U.S. Small Businesses Doubles since 2009, Robert H. Smith School of Business, University of Maryland, 2.16.10]