In the past, local advertising was the best way to reach new customers if you have a business offering local goods and services. Yellow pages, local newspapers, door-to-door flyers, coupons and promotions and word-of-mouth do still generate phone calls and storefront traffic. But today consumers are increasingly using the Internet as their primary source of local business information. Having your business presented at the top of search engine results and in local directories is now a critical part of any local marketing plan. And it can be very cost effective when compared to traditional media.

This series of posts will explain the ins and outs of local search visibility, provide an overview of the pros and cons of local search marketing, and explain how it can be integrated into your overall marketing plan.

What is local search marketing?

Local search marketing leverages the power of major search engines such as Google®, Yahoo!® and MSN®, along with local online directories (also known as Internet yellow pages).

When a potential customer goes online and searches for a product or service within a specific geographic area, this is called a local search. Examples of local search could be “hotel in Kansas City”, “landscape design Loudoun County” or “daycare 90210”. Generally, local search is used to find information online with the intention of making an offline purchase, either over the phone or in a retail location.

When a potential customer searches for a local business, search engines will return results that match the search terms within that geographic area. Often these local results are listed ahead of general search results. Therefore, if the search engine has information about your business and the products and services you offer, you could find yourself in a prime position on page one of Google!

If the customer clicks on a business in local search results and the business has a Web site, he or she will be taken to that Web site. If the business doesn’t have a Web site, or the search engine doesn’t know about the Web site, the customer is taken to a business profile created by the search engine. If the search engine has a profile for your business and you did not specifically create that profile, the profile will contain whatever information the search engine has gleaned about your business from other sources such as local directories. It may also include reviews from your customers:

By creating a local business profile for your company, you will be able to regularly update the information that you want potential customers to see. The types of information you can include are:

•    Physical location(s)
•    Directions via interactive maps such as Google Maps
•    A business summary
•    Contact information
•    A link to your Web site
•    Brands, products and services offered
•    Pricing information and payment types accepted
•    Coupons and special offers
•    Hours of operation
•    Any other information that may be of interest to potential customers!

Not all searches for local businesses take place on search engines. Many customers like to use online local directories, such as ThinkLocal™. There are also many directories that only cover a particular geographic area and are used mainly by people who live or work in that area. Local directories can have the added benefit of being indexed by search engines, so the businesses listed in these local directories benefit not only from referrals from these directories, but also from subsequent placements in search results on the search engines.

Making sure that your business is included as close to the top of local results in search engines and local directories is called “Local Search Marketing” or “Local Search Visibility”.

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In part 1 of this series we explored how local search marketing works. Here in part 2, we’ll talk about why local search is important.

Today’s Internet savvy customers prefer to use online search capabilities instead of traditional media such as yellow pages and local newspapers. Increasingly, studies indicate that customers with Internet access are more likely to use a search engine than printed sources like yellow pages or local newspapers. This trend has been increasing every year.

In June 2008, eMarketer estimated that over 60% of US Internet users used a form of online local search when looking for local business information, with only 30% using printed directories:

Source: eMarketer

Of these potential customers, over 85% visited a retail storefront or contacted a business on the phone or by e-mail, as a result of their online local search:

Source: eMarketer

And not only do potential customers contact businesses as a result of a local search, over 50% of them actually make a purchase!

Source: eMarketer

Local search is likely to become more important in the future because search engines like Google are becoming more focused on local results. For example, Google recently introduced a feature where people searching for a generic term, like “pizza”, are automatically prompted to enter their zip code:

Based on current trends, every local business should have a presence in search engines and directories. If your business doesn’t, you could be missing out on valuable leads!

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In Part 1 of this series we explored how local search works. Part 2 discussed the recent growth in the popularity of local search with consumers. Part 3 took a deeper dive into some of the pros and cons of local search visibility. Now we’re going to look at some of the practicalities of implementing local search.

It is tempting to think of local search as a subset of your general marketing campaigns, but the best results come with tactics specifically tailored to prospects looking for local information and services. How you approach this will depend on whether you have an existing Web site or not.

If you don’t have a Web site:
Local search provides you with the opportunity to create a Web presence! By setting up local search listings you can ensure that your business is found online. If you don’t have a Web site, it is important to encourage potential customers to call or visit your retail location. You can track the effectiveness of this approach by offering special discounts or coupons, such as Google Coupons that you only make available through local search.

If you do have a Web site:
Local search can be an easy way to get your Web site listed in local search engine results, in addition to the general results. If you don’t sell online from your Web site, you may want to consider making your phone number or location more visible on your home page to convert as many prospects as possible.

Regardless of whether you have a Web site or not, the search engines will often rank your business higher in local search results if you have a lot of listings in local directories because this is considered a good measure of your credibility. So it’s important to obtain as many listings as possible on sites that the search engines consider valuable local resources. Often these are local organizations, so part of your strategy should be to seek out credible local organizations, such as your Chamber of Commerce or other local trade associations that might be willing to include you in their business directory.

You should also think carefully about the keywords someone searching for your services might use. While it might work to use “florist in Denver” as keywords for general search (someone in New York wanting to send flowers to Denver might very well search on this), for local search you should select tightly targeted geographic keywords. Someone living in Denver might well search for a florist in a specific part of the Denver metro area, such as “florist in Englewood”.

One final tip to consider – your online identity for local search does not have to be exactly the same as your business name. If you can include some information about what your business does in your name, you may find your results improve. For example “XYZ Inc” could use an online identity of “XYZ Tire Repair Service” for local search. Some directories also return results alphabetically, so another option for this business would be to list itself as “A+ XYZ Tire Repair Service”.

There are many tips and tricks to maximizing the effectiveness of local search, and it can take time to figure them out. You may want to consider using an external service to help you, which will be the subject of the next post in this series.

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