According to a recent study conducted by BIA/Kelsey and ConStat, almost all Internet users in the U.S. use online media when researching local products and services.
The study, titled “User View Wave VII,” found that 97 percent of U.S. consumers utilized online media when doing research on products or services in their geographical area.
“The data suggest we’re at an inflection point where the balance of power in local shopping is shifting to online,” said Steve Marshall, director of research at BIA/Kelsey.
Meanwhile, 90 percent use search engines when researching local products and services, 48 percent use Internet Yellow Pages, 42 percent use comparison shopping sites and 24 percent use vertical sites.
On average, consumers use 7.9 different media sources to do research before visiting local businesses. This reflects an increase from 6.5 sources in 2009, 5.8 in 2008 and 5.6 in 2007.
Fifty-eight percent of respondents said they used an online coupon when shopping for products or services in their local area during the past year, while 19 percent report making an appointment online in the past six months for a service other than a restaurant reservation (“e.g. business appointment, health-care appointment, auto service or personal service such as a beauty shop”).
“The increase in audience fragmentation presents challenges for advertisers looking to connect with local consumers,” said Peter Krasilovsky, vice president and program director of Marketplaces at BIA/Kelsey. “These challenges may be outweighed by the targeting opportunities available with tools like coupon promotions and appointment scheduling, the latter being among the best lead sources possible, since you know where people are actually going.”
An earlier BIA/Kelsey report showed that $130.2 billion was spent on local advertising in the U.S. in 2009, which was 55.3 percent of the total.
Though $15.2 billion was spent on online local advertising in the U.S. in 2009, BIA/Kelsey expects this figure to rise to $17.5 billion in 2010. By 2014, this number will reach $36.7 billion.
With the expanded opportunities that location-based social networks, especially on mobile devices, brings to the table, the moral of the story is clear: If you’re a local business who still hasn’t asserted itself online, it’s time to jump into the game.
Sources:
http://www.bia.com/pr100310-consumers-use-online-media-local.asp
http://www.emarketer.com/Article.aspx?R=1007566
http://www.emarketer.com/Article.aspx?R=1007539
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