Study Finds Local Online Ad Outlook Strong; Calls for Mobile Regulation

Thursday, 02 February 2012 16:04

Marketers are becoming bullish about their current and future investment in local advertising, particularly in local online media, according to a study released this week by GMSLocal. However, members of Congress such as Rep. Edward Markey (D-Mass.) believe that the mobile technology that could drive such growth may need stricter regulation.

The GMSLocal study, entitled Perception vs. Execution: Examination of Brands’ Local Business Strategies Reveals Gaps to Act On, reveals that 83% of marketers surveyed expect their local online spending will exceed the projected national growth of 25% over the next three years. The study’s findings include:
Google states that 20% of all searches have local intent, and that number jumps to 40% when conducted on smartphones.
Foursquare, the location-based user check-in service, reached 1 billion check-ins as of September 2011.
A 2011 comScore study indicates that 50% of consumers select a local business based on ratings and reviews of others.

The study chides national brands for failing to take advantage of local advertising: “There is a clear disconnect between a marketer’s perceived actions with local online advertising and the reality of what is actually being implemented,” the report stated. For example:
One of three surveyed have not invested in local online business directory listings.
Only 40% have invested in local business listings.
Only 45% have invested in geo-modified paid search.
Only 55% have participated in local online review sites.

Source: Street Fight

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