LOCAL MARKETING

"Your Customer Is Right Around The Corner"

LOCAL TARGETING WITH GOOGLE

Ever since Google debuted their local targeting pay-per-click advertising program in October 2003, Internet marketers have been contemplating if "local search" is an overdue reality or a fad that will blow away. The concept is simple enough. You market your website to attract searchers to buy from your local, physical business location.

How new is local search, or local Internet marketing? Have people just started using the web to find local businesses?

No.

Do people often go online to find accountants, dentists and coffee shops?

Yes.

Have local search engine results always been relevant?

No, but they're definitely good right now.

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SEARCH AND LOCAL SEARCH

The demand for local search has always been there. The supply has not. A few years ago, you and your local business website could try to compete nationally on search engines, but would most likely spend money on Internet Yellow Pages (IYP) ads and traditional marketing efforts. IYPs and local online portals such as Citysearch are now working together to provide a better local search experience.

INTERNET YELLOW PAGES MARKETING

For a long time, IYPs have provided the most supply for local purchases. A recent study by comScore Networks and the Yellow Pages Association™ says that IYPs are still more efficient than search engines when it comes to producing actual local purchases. It doesn't mention that people who use IYPs are most likely further in the buying cycle than people who use search engines (more on that below).

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Search Engines

In 1998, you might have used a search engine to find a local dentist and found the top 10 results full of online casinos, sex and gambling sites. Why? It was then easy for people to manipulate search engines. These engines have come along way since then, and for the better.

You can see the results for Minneapolis Dentist in Google, Yahoo or MSN right now. The results are much more relevant. Some major search engines have known about local marketing for a while. Both Google and Yahoo show some local results over their main results. Their products...

Google Local
Yahoo Local

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Pay-Per-Click Advertising

As mentioned earlier, Google helped create the "local" buzz in October 2003 by debuting their local targeting pay-per-click program. Before that, there was really no way to use pay-per-click advertising to ONLY a particular local market. The best you could do is include your city/region name in your ad to SUGGEST to people that you do business in a particular area.

YAHOO LOCAL MATCH

In June 2004, Overture introduced "Local Match" (now Yahoo! Local Sponsored Search). This allows you to advertise online locally whether you have a website or not.

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PAY PER CALL

Since then, others have followed. Ingenio introduced pay-per-call services and partnered with 2nd tier Internet advertising company Findwhat, and most recently, AOL. Kanoodle introduced Local Target. They hope to recruit partners to help you advertise with local news and content pages.

Internet Yellow Pages (IYPs)

IYPs have been around the longest. They started appearing soon after the Internet was growing in popularity. At the time, they could easily sell an online listing. It was basically THE way a local business could be mentioned online.

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MORE PURCHASES WITH LOCAL SEARCH

The comScore study mentioned above implies that IYPs produce more purchases per capita than search engines. This is probably true. Many consumers think of IYPs as a sophisticated online alternative to the big yellow book they get every year. These consumers are more than likely further along in the buying cycle. If you need an emergency plumber, you can find one in the yellow pages. If you're looking for an income tax accountant, you can find one in the yellow pages.

There are different IYPs out there. Some of them are known by name in your geographical area, and some are nationwide based. It can be worth it for branding or if you have a sudden "call to interest" message you want to send. This has always been the selling point for yellow pages.

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Interchange's Local Direct program enables independent IYP companies such as BDlocal with aggregate yellow pages data, allowing them to offer additional premium advertising services.

Traditional and Print Marketing

Local businesses haven't always been seeking customers who search the web for them. Like mentioned above, although the demand for local Internet marketing isn't new, the supply hasn't always been there. Ever since local businesses started appearing online, you have heard and seen radio-TV commercials mentioning their URL or website name. As well, online information became visible on business cards, letterheads and print brochures. This has been a branding technique used to provide additional options for their potential customers to see them.

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Word of Mouth

There has always been word of mouth marketing, arguably the most sought after way to attract customers both offline and online.

Future of Local Search and Localized Internet Marketing

Since the birth of Internet marketing, the only constant has been change. Online branding, banner advertisements, search engine marketing, e-commerce and pay-per-click advertising are just a few areas that continue to change over time. Where will local search be in 5 years? Who knows? The demand should be there, and only time will tell which new local marketing programs develop and which current programs continue to succeed and improve.

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Most likely, the successful programs will be the ones that help integrate both online and traditional marketing. It can be important to get local visitors to your site, but it's more important to get local customers to your location.

If you live in a city of any size -- especially in an area where new people are moving ilocal marketing local search is Internet Yellow Pages Web marketingn -- people are increasingly using the Internet to find local businesses. That may not be your preferred mode of research, but for many, especially younger people, the Internet is their key to knowledge -- both local and global.

Nielsen//NetRatings new MegaView Search service found that 24.4% of searchers on major search engines conducted searches that were local in scope, averaging 4.6 searches per searcher.

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LOCAL MARKETING SEARCH

A Kelsey Group-BizRate.com study found that more than 74% of respondents said they had conducted local searches and confirmed that 20% of all searches among respondents was local. Using the Internet to find local businesses is now mainstream and can only grow in frequency.

Some of the businesses that can be helped by local Internet marketing include: chiropractor, computer retailer, travel agent, locksmith, massage therapist, insurance agent, real estate agent, mortgage broker, maid service hardware retailer, plumber, auto repair, physician, dentist, florist, limousine service, accountant, auto dealer, lawyer, restaurant, and movers, among others.

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Fortunately, for a local business you don't need a huge, complex, and expensive website to be effective. You're not competing with the best of the best nationally, you just need to present yourself well to local residents and those within driving distance.

ONLINE SEARCH IS LOCAL SEARCH

Target customers who search online but purchase locally. Local Sponsored Search listings enable you to drive customers from the Web to your door whether your business has a Web site or not. You can precisely target prospects searching online for products and services available in your neighborhood, and connect with customers who are already interested in what you sell.

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LOCAL SPONSORED SEARCH

Local Sponsored Search features a Locator page, which provides prospects with information about your business, including address, phone number, store hours and a map of your location. In addition, if your business has a Web site, your main Web page will be displayed along with the Locator page.

To get started, you write a description that accurately describes the products and services you offer and bid on keywords that apply to your business. You also determine the size of the area (ranging from 0.5- to 100-mile radius around your location) from which you want to draw customers.)

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Startup businesses sometimes rush to advertise in the wrong places. They see glamour in certain vehicles, such as general interest magazines or cable TV, only to find that their costly ads don’t really bring customers in the door.

LOCAL MARKETING FOR THE MASSES

Today’s emphasis needs to be on local marketing - reaching individual communities with specialized messages. The bygone era of mass marketing, populated mostly by big companies that could afford that kind of thing, is being replaced by what marketing mavens are calling “mass personalization.”

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LOCAL TO THE NEIGHBORHOOD

The latest trend is to bring marketing down to the neighborhood level and make it personal to the customer. Tom Feltenstein, a top local marketing proponent, advocates targeting your marketing efforts to specific neighborhoods, “making sure your message is delivered only to people most likely to be your customers — those within 10 miles or 10 minutes of your door.”

BACKYARD LOCAL!

One marketer , who works with many corporate giants on their marketing efforts, says that it’s all about thinking small and keeping your marketing local. He encourages stores, restaurants and other types of businesses to look no further - literally - than their own back yards for customers.

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Local marketing keys: community involvement

This neighborhood-first mantra suggests a heavy dose of community involvement in your local marketing efforts. For example, here are three community-related marketing strategies:

1.  Good grades equal good customers: contact local school principals to offer incentives of free products or services to students who achieve high grades. When someone brings in a good report card to your business, give him or her the reward.

2.  Surveys equal more customers: regularly check the pulse of your customers with an attitude profile survey. You’ll collect useful data, learn what they like and dislike, and demonstrate your concern for their opinions, all at the same time.

3.  Complaints are your best friend: nine out of ten unhappy customers never complain — at least not to you. Instead, they don’t come back and then they go tell their friends. Your business needs to invite criticism so you can address the problem and turn it around.

Some other uncommon wisdom on marketing locally

  • Tap the potential of your greatest profit opportunity within your trading area - the customer base that is right in your back yard. Businesses, schools, churches, community events and even fellow retailers become your promotional allies in building cost-effective programs to capture consumer dollars right within your reach.

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  • Local marketing is face-time marketing. Look for ways to convey your marketing message to potential customers one-on-one. You can go first to your employees, then from your employees to your guests, and finally from your guests to their families, friends, neighbors and co-workers. This brand of face-time marketing is intimate and personal, as opposed to slick and impersonal mass media advertising. Even big chains are latching onto this concept by encouraging individual stores to think small and locally in their individual marketing plans.
  • Contrary to some of the old “rules” of advertising, the local marketing approach eschews institutional “exposure” advertising. “Every local marketing program should pay its way,” says Feltenstein. “A marketing approach is either profitable or unprofitable based on results. If your current marketing is not measurably profitable on a per-project basis, kill it.” Move on to the next tactic, go for sales, skip branding.

WHAT ARE YOU LOOKING FOR?

Google

UNPAID LOCAL MARKETING CONSULTANTS

To help generate more sales, treat your customers as authorities and unpaid local marketing consultants. Ask their advice and opinions of your operation, such as how you might improve it to better meet their needs. Don’t be afraid to reveal inside information, such as marketing ideas or recipes. The more they understand your business, the more they will respect what you are trying to do. Look for ways to show you are aware of them as individuals, not just customers.

If you have limitless funds to throw at mass marketing advertising to build a name for your business, by all means go ahead. But if you want to laser-target your efforts to the best prospects in the most efficient results-oriented manner, try putting the neighborhood, local marketing concept to work for your startup business. Think small, think locally and capture the customer cash that is the easiest to reach.

If you operate in a traditional “Yellow Pages industry”, Internet marketing can work like gangbusters.

What kind of businesses suit local Internet marketing?

Providing that potential customers are searching for your product or service in your area, you can benefit from local internet marketing.

By “Yellow Pages industry”, I’m referring to products and services that are typically only intermittently required and that people traditionally search for in the Yellow Pages. For example:

Plumbing
Electrical
Mechanical
Landscaping
Pest Control
Some professional services (Legal, Accounting, Financial)
Construction
Bookkeeping

Using some of the internet-based marketing strategies below, many of our clients are able to acquire new customers for around 80% - 90% less than the Yellow Pages.

local marketing local search is Internet Yellow Pages Web marketing

Internet Yellow Pages Help Target Your Customers

Consider your local population base

The effectiveness of your local internet marketing activities will be influenced to some degree by the population of your market. If you’re a small business accountant in Houston, then you have a large population base from which to draw. But if you’re located in a small country town, search-based local internet marketing may not be as appropriate in your situation.

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How do people search?

When people search for products and services in their local area, their search will most often look something like this:

[industry name] + [location]

e.g.

Plumber Brisbane or
Financial planner Melbourne

For example, one of our clients is a pest control specialist that services the Houston area. Two of the more popular search terms used to find their website are  Houston pest control company and termite control Houston .

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By being highly visible in popular search engines (particularly Google) for these terms , this company is able to generate a lot of new business (more about some of the specific traffic generation strategies they use below).

What should your website say?

The subject of how to convert website visitors into enquirers would fill a whole book in itself, but here are a few important guidelines that many high-converting local business websites follow:

1. Make it clear that you operate in your local area so that local visitors know they’ve come to the right place. Referring to your location within your website content may also help to boost your ranking in search engines.

2. Your website content should take the form of a sales letter designed to generate an action (i.e. an enquiry) from your visitors. A good phrase to start with is, “Are you looking for a [what you do] in [your location]?. e.g. Are you looking for a personal trainer in Perth? Then go on to explain the benefits of doing business with you.

3. Bear in mind that when people search online, they’re probably comparing 3 or more websites just like yours. So be sure to explain how you’re different and give plenty of reasons why customers should choose you and not your competitors.

4. Provide a clear “call to action”, or instruction about what to do next. e.g. “Fill in the form below for a same-day response.” Our results show that most website enquiries come via a online contact form as opposed to the telephone, so make sure your contact form is easy to find and use.

5. Just like in a Yellow Pages ad, do everything you can to enhance and communicate the credibility of your business. In the Houston pest control website mentioned previously, notice how the logos and industry memberships along the left hand column reinforce their position as the pre-eminent pest control provider in Houston.

WEBSITE TRAFFIC AND LOCAL MARKETING

The next part of the equation is driving website traffic. You might have a fantastic website but if no one in your target market can find it, it won’t do you much good. Here are some successful local traffic generation methods to try:

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1. Pay-per-click (PPC) advertising, particularly Google Adwords. This is instant, targeted and cost effective. There are other PPC search engines including Yahoo! Search (formerly Overture), but Google Adwords consistently produces the best ROI.

How to drive targeted local traffic to your website

  1. Online Yellow Pages - this can be a good source of high-quality traffic. Like any marketing approach, you should track your results to ensure that it is profitable in your situation.
  1. Search engine optimization or SEO. Search engine optimization means ranking your site in the “free” search engines such as Google, Yahoo and MSN. For many local search terms, it is relatively easy to achieve high rankings. You can either employ a provider of SEO services to do this for you, or learn about it for yourself (Brad Fallon’s resources are a good place to start).

The above 3 ideas are obviously a non-exhaustive list, but these three strategies alone can generate a significant amount of additional revenue. The pest control business mentioned above will conservatively generate an additional $200,000 in business online this year - that’s a healthy sales boost that is only set to grow as more and more people use search engines to find what they’re looking for.

Google AdWords is introducing local business ads, a new ad type that allows advertisers to promote location-based products and services to interested users worldwide (note: this service is available for business locations in the U.S, Canada and the U.K.). Local business ads appear with an enhanced map component on Google Maps and in a text-only format on Google.com and other sites in the Google network.

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Why local business ads?

Google's goal is always to offer users relevant information through our search results and advertising. Local business ads can help users by showing them products and services that are physically nearby, and help advertisers by providing a new way for them to reach more local customers.

What's more, both small businesses and large chains can easily target multiple locations within a single Ad Group using the same keyword list – yet another way of targeting more customers more effectively.

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How it works

Whenever a user enters a query that matches advertisers' chosen keywords and business information, up to three local business ads may appear as "Sponsored Links" below the user's Google Maps search results. The ads display in two parts: a highlighted listing in the search results column and a map marker that expands to show additional business details when the user clicks on the ad title or the marker itself.

The highlighted listing consists of your business name, two description lines, your URL, and your business address, all of which is gathered from Google Maps's local business listings.

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The info window that expands from the map marker displays an optional phone number and image, along with the standard business information.

TEXT ONLY FOR LOCAL BUSINESS SEARCH

Finally, a text-only version of each local business ad automatically runs on Google.com and other sites in our search network. The text version has the same ad text and display URL as the enhanced ad on Google Maps. A fifth line of text shows lists city (and state, if applicable). The text-only version of your ad is ranked and priced just like any other text ad running on Google.

Top Seven Strategies to Help You Market Your Local Business Online and Market Your Virtual Business Locally

INTERNET LOCAL ADVERTISING

Roughly 75% of the business owners I speak with in any given town or city see little, if any, need for an online presence.  They believe in doing business the way it's always been done, with local advertising, foot traffic, telephone book listing or advertisement, special promotions, and word-of-mouth marketing, and assume that local residents will find out about their business in these same ways.

There's absolutely nothing wrong with these promotional methods, but it does create a tunnel vision view of marketing in this day and age. A Kelsey Group-BizRate.com study found that more than 74% of respondents said they had conducted local searches and confirmed that 20% of all searches among respondents was local.

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Whether business owners acknowledge it or not, the Internet is here to stay, and using the Internet to find local businesses has now become mainstream, and will only continue to grow as today's children and teens, who have been online almost all of their lives, become adults.

I know that when I do a search for local businesses, I am often taken to one of the local city directories, where I am given the address and phone number of the business, and if I'm lucky, the website URL, if they have a website.  Most days, I search out the website of a local business to "check them out" before deciding to do business with them. 

One of my most frustrating times comes when I want to place a takeout order at a local restaurant and don't have a takeout menu handy.  I'll go online to find the menu of the restaurant, and unfortunately, unless it's a local chain with multiple locations, I typically don't find what I'm seeking.  That restaurant usually ends up losing my business to one in which I can scope out the menu online and call in a takeout order.

If you have a brick-and-mortar business, how much business are you losing because you don't have an online presence, or because your website doesn't contain enough information to help someone decide to do business with you?  Or, if you have a virtual company, what if no one can find you when they conduct a local search of businesses in your industry?
 
I do no marketing locally, as there is little demand for the type of services I provide in this area.  However, I began to wonder if I were losing out on what little local business might exist for my virtual company, so I did some research to find what websites would help my company website show up in any local searches.

 
 
 
1.  Local Portal Sites:  Search Google, Yahoo, and
MSN for your city name and see what comes up.  Are there any sites on the list with which you can exchange links, buy advertising, purchase a membership, submit articles, etc.?If you live in a small city, as I do, you might also search for larger cities that are close to your location, or search for a regional name that your area might have.  For example, I found more portal sites by using "Southeast Texas" as a search term, rather than an individual city name.
 
2.  Search Engine Directories:  Search Google Directory, http://directory.google.com for your city name and look for a category that ends with "Guides and Directories".  When you click on that, you'll see the directories listed by importance, as determined by Google's Page Rank feature (you'll need to download Google's toolbar to see this info.  The toolbar can be found at http://toolbar.google.com. The higher the rank (10 is high), the more traffic the site has.

Or, you can manually search Google as follows:
Regional Directories (by continent/country): http://www.google.com/Top/Regional/
By state in the
US:  http://www.google.com/Top/Regional/ North_America/United_States/
 
You can also search Yahoo Directories, http://dir.yahoo.com. To suggest your business for inclusion, see Yahoo's guidelines here:
http://help.yahoo.com/help/us/ dir/suggest/index.html

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Yahoo's regional directory listing can be found here: http://dir.yahoo.com/Regional/ and listing for the US states is found here: http://dir.yahoo.com/ Regional/U_S__States/

Yellow Pages Sites:  There are a number of bigger city options here:
 YellowPages.com (SBC and BellSouth): http://www.yellowpages.com/ guide/cityguides/
Super Pages (Verizon): http://www.superpages.com

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.  Nationally-Based City Guides:  The largest of these services, CitySearch, http://www.citysearch.com/, drives content to many other city guides.  Other city guides include AOL CityGuide, http://www.digitalcity.com, Area Guides, http://www.areaguides.net, Online City Guide, www.onlinecityguide.com, and Associated Cities, http://www.associatedcities.com/

Newspaper-Based Local Sites:  If you live in a larger urban area, your local newspaper may sponsor a site for your city, like Charlotte.com, sponsored by the Charlotte Observer) or Boston.com, sponsored by the Boston Globe.

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Locally-Based City Guides:  Again, in larger urban areas, your local chamber of commerce, convention and visitor's bureau, or a private business may operate a local portal for your city. Here in Southeast Texas, our locally-based site is SoutheastTexas.com, owned by a private business.  Others, like FortWorth.org, is sponsored by the Ft. Worth Convention and Visitor's Bureau.

Association Guides: Your membership to your local chamber of commerce, convention and visitor's bureau, professional association (by industry), general business groups (networking groups, men's or women's business associations, civic groups) may pay off if the association has an online membership directory where your listing might be found.  Make sure that the listing includes both your contact info and a link to your website.

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I've only scratched the surface of the local possibilities available for both virtual and brick-and-mortal companies. In doing the research for this article, I discovered there are thousands of businesses who aren't listed in any of these directories.  Don't let yours be one of them.  Get your business listed locally so you local customers can find you!

WHY LOCAL SEARCH?

More than 40% of all Internet searches for businesses or services are local in nature, and that’s why targeted local search marketing is a crucial strategy for attracting local customers. Businesses, like yours, simply cannot afford to ignore the power of online local marketing search.

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Sweet Spots on the Web: Local Marketing Grows Up

Enter broadband Internet. Consumers search for information instantly (mostly using broadband connections) to the tune of 450 million queries daily. While many searches are recreational, Forrester Research reports around 70 percent of consumers will research products and services this way in a given year. In addition, a majority will then purchase the product or service locally.

With this huge number of consumers scouring the web, a new marketing tool has entered the picture, known as Local Search Advertising, which works like this:

Let’s say a web-savvy
Houston family needs a new refrigerator. They visit a web search engine to research the models. Typing “Frigidaire” on Google or AOL yields typical results, displaying a link to Frigidaire’s site with other “less useful” listings. But there’s something more going on here.

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Even without entering their location, the top and right sides of this results page display ads for Frigidaire showrooms right here in Houston. One click to the local company’s Web site can let the potential customer see current stock and a special Internet sale for Frigidaire buyers. The merchant has been presented as both a solution for the information and a local contact for the purchase, and the loop is closed.

A search for “Tax Forms” shows accountants’ ads, “Steel Building Types” shows contractors, and so on. And more than half of these searchers don’t have a particular vendor in mind at this stage, making it a great opportunity to find new customers. This is not spamming, and I am not talking about those annoying pop-up ads; rather it’s a chance for a merchant to react to a customer-initiated request for help.

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The search engines aren’t providing this fancy technology out of the goodness of their hearts. Businesses spends $22 billion a year on local advertising, and many studies show that local firms are looking to shift parts of their budget in favor of the Web. There are many reasons, including the difficulty in saying “We’re in the yellow pages” without “Which one?” coming back as the reply.

PLACEMENT AND LOCAL-ORIENTED SEARCHES

Some of the programs being offered for local search placement in major search engines are Google Adwords, Yahoo! Search Marketing and Verizon Superpages pay-per-click. Each wants to become the consumer’s (and by extension the advertiser’s) next choice for local purchase-oriented searches. These large ad networks claim to cover 70 to 80 percent of the Internet with their pages and “partner sites.”

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In addition to the timing, a benefit to the advertiser is the pay-per-performance pricing model. The ads are free until someone clicks, at which time a small fee is charged and the visitor is sent to the advertiser’s Web site.

There are no long-term commitments, and advertisers can change or stop ads any time. They can create predefined budgets for the day or month and fraud-proofing mechanisms prevent competitors from rapid-fire clicking. Markets can be limited by single or multiple cities, states, languages and countries.

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The actual cost of a click is usually based on a bidding model. Whoever is willing to pay the most for the visitor in a region is able to buy his or her way to the top, in most cases. For markets the size of Lexington, bidding wars are not that common, and you can usually get into a good position for under 50 cents per visitor. If you’re like my clients, the value of a targeted site visit is many times this amount.

During a campaign, reports are generated about click-through rates (how many visited a site from an ad) and conversion rates (how many visitors made an inquiry or purchase.) Advertisers can nurture effective ads and remove poor ones.

My favorite use of this data is as a planning guide for Web site redesigns. I tend to carefully measure inquiries and near-purchase pages such as “directions to our store.” Ads must be carefully written to avoid “window shoppers” and monitored closely at first to look for leaks.

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PAY PER CALL ADVERTISING

As usual online, this is just the start. In development are special pay-per-call advertising technologies and mobile device/phone searches using GPS. Businesses will be able to reach out to consumers with timing accuracy never before possible.

The power and profitability of local online marketing are more apparent every day. We have seen that if you want to sell/purchase goods or services via a print ad in a local newspaper, you may get 10 calls. However, when you place your ad online in a local online community directory, such as Craigslist.com, you will undoubtedly receive 100+ calls.

Realizing the “New” Powers of Online Local Marketing

Whether you are looking for plumbers or restaurants and everything in between, the first place people look is on a local search engine, such as Yahoo!, Google, or MSN. In our modern, fast response world, more and more people are using online yellow pages to research and plan travel, therefore, if you want to align your hotel services with local activities you must participate in local online mediums that are relevant to the travel industry.

  1. SideStep Launches Activity Search – This cool, new feature of SideStep allows travelers to create their own itinerary of things to do once they arrive at your destination.
  2. On this site, people can find listings and information for local Amusement and Theme Parks, Cultural, Dining, Museums, Other, Outdoor and Adventure, Shows and Theater, Sports, Tours and Attractions, and Transportation - within a specific radius and timeframe.

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This is more reinforcement of the fact that people are coming to your hotel because of the various happenings, events and attractions in your local area. The bottom line: Give travelers a reason to visit your hotel.  Here’s what’s new in the realm of online local search tools . . .

  1. Top Two to Three Results on search engines come from Local Search Engines!
    Local search engine results show as the top two or three results for any query on every search engine.
  1. Typically, results are based on geo targeting. According to Google Map (Local), Google regularly updates its index with information from third-party providers to add new businesses, incorporate changes to existing businesses, and remove businesses that no longer exist.

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  1. If you want to ensure that the right information appears in Local results, you need to contact these sites discretely. Positive Online Customer reviews help improve your results on local search engines. It is important for any business to be first enrolled in Local search engines and then make sure that they contain quality reviews on different engines, portals and directories.

Market your restaurant, spa, meeting facility or any business located in your hotel.
If your hotel has great restaurant or spa onsite, it is worth setting up a “subdomain” for the restaurant by enrolling it in local search engines as a separate domain. Typically, locals go online and search for a local restaurant by distance or type. If only the hotel is enrolled in a search engine, locals or visitors to your town will not find your onsite restaurant located in the hotel

Local Search for Big Brands

When you think of local search marketing, what type of business comes to mind?

If you're like most people, you probably think of a small, local service organization or retail shop. The pizza place near your home, electricians or plumbers in your city or town, maybe even a bed-and-breakfast run by a local family.

It may be time to broaden your perspective.

Local Search Isn't Just for Local Businesses

It's true that local searches often correspond to local businesses. When you're looking for a specific, locally owned and operated business, there's nothing better than finding exactly what you seek on a search engine results page. But the overall marketing opportunity local search presents is much, much larger than this.

Big companies looking to strengthen their brands and leverage the Internet's power are increasingly aware of local search's benefits. A few scenarios that illustrate this:

  • Ever been on a trip and looked for a Starbucks close to your hotel?
  • Ever needed directions to an AMC Theatre in another town?
  • Maybe your windshield's cracked and a friend recommends Safelite AutoGlass?

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Common situations such as these often result in a local online search.

Starbucks. AMC. Safelite. Not exactly small companies, are they? It's no secret these firms spend a lot of time and money building their brands and running national (and international) ad campaigns. Yet savvy marketers at large corporations are starting to realize they can reach local customers in a new way -- a very relevant and helpful way.

National Brands: Local Experiences

Starbucks is one of the world's most powerful brands, yet when you walk into a store, order your grande nonfat latte, purchase a CD, and sit down on the couch, it's very much a local experience, isn't it? People experience the brand one cup of coffee at a time. Your opinion of Starbucks is far more influenced by your experience in that store at that moment than by any ad campaign, online or off-.

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So consumers interact with brands locally. That's nothing new. Here's the piece many marketers are still missing: A person's local experience could easily begin before he walks in the door. It may begin online on a search engine. Customers may be searching for local businesses at home, at work, or from a mobile device.

The Starbucks Example

Just this week I saw Starbuck's back-to-school campaign (co-marketed with Visa). When you purchase a $50 Starbucks card using Visa, you get a $10 bonus card." I saw banner ads, search ads, and content-targeted ads across the Web. Safe to say it's a pretty robust campaign.

GOOGLE MAPS AND LOCAL SEARCH

Then I went to Google Maps and searched for a Starbucks store in several college towns. I searched Boulder, CO; Austin, TX; Madison, WI; and Boston, MA. Sure enough, the back-to-school ad was listed as a Sponsored Link on the left side of the local map page. Brilliant targeting? Perhaps. More likely, it was the result of a large budget. Turns out the ad was listed on any Google Maps page if Starbucks was included in the search query. Still relevant, nonetheless.

Let's recap this local search experience: I'm searching for a Starbucks in my college town. I can view all store locations on a street map, a satellite map, or a combination map. I can zoom in and out. I can select my desired store and get the address, driving directions, phone number, and customer reviews. I can send all this information to a friend in an e-mail. I can even send driving directions to my cell phone and click on a Starbucks back-to-school ad -- all from the same local interface. Not bad, huh? And, amazingly more robust and flexible than flipping through the yellow pages.

But wait, it gets better. Google recently announced the addition of a new local couponing feature, meaning Starbucks could also provide coupons, printable right from the map and redeemable in select college town stores (no, not those coupons. (More on this in a future column).

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Don't Miss the Power of Local

Yet given all this, big-brand marketers continue to dedicate nearly all their budgets to TV, radio, print, outdoor, and direct mail. It's a shortsighted strategy because raising awareness using traditional channels causes today's consumer to go online and -- you guessed it -- search. Marketers must close this loop and follow their customers online. Take advantage of this highly focused, highly relevant way to reach people online: the local search experience.

Putting A Local Spin On Your Global Brand

Global brands need to strike the right balance between localization and globalization when packaging their consumer goods. That’s because many markets are conditioned by local traditions and inherited cultural values that may influence consumer response to package features such as shape, colors and text. The Chinese, for example, associate the color red with happiness and luck, while in most Western cultures the same color has more negative connotations. Similar examples are legion. Given these complexities, can any best practices be identified for global packaging?

Several years ago, McDonald’s announced plans to introduce a single line of product packaging for use around the world. But last February, the company seemed to step back from that strategy in favor of one in which nutritional information and some graphics on the packages are localized. McDonald’s reportedly plans to have these new packages in 20,000 of its restaurants in Europe, the United States, Asia, Latin America and Canada by the end of this year.  

Why the apparent about-face? In spite of McDonald’s reputation as a leading global brand, its restaurants are actually positioned very differently around the world. In the United States, for example, the Golden Arches are associated with a low cost meal. But in the UK, where the chain got a later start, the brand represents something more premium. And in China, McDonald’s is viewed as a very premium gateway to the West. Says Mark Kennedy, chief strategy officer at Landor Associates, “Even though the physical product itself looks the same, it does very different things.”

LOCAL ADAPTATION IS KEY

From the point of view of product positioning, McDonald’s local packaging would seem to be just what is called for. But Kennedy also makes a distinction between product brands and experiential brands. And McDonald’s would seem to fall in both categories. On the one hand, the company is a purveyor of food products that require local adaptation; but perhaps even more than that, Kennedy says McDonald’s is a highly experiential brand that demands global consistency. “Although the food product is important,” he says, “what the company is really selling is the McDonald’s experience.”

To the extent that the company is selling a product, its product has to be focused on the needs of local audiences. McDonald’s retreat from its global packaging strategies would seem to make perfect sense, according to Kennedy, if the company has in fact decided to alter its brand image from one that is experiential to one that is more product-oriented.

Let the category be your guide

Professor Kees Sonneveld of Australia’s Victoria University argues that product categories should be the guide for a brand’s global packaging strategies. He feels, for example, that global food and beverage products are better off with local—or regional—packaging because these products often have low dollar value and are more sensitive to taste and flavor perceptions of the local market. As an example, he cites the marketing of Coca-Cola in parts of Asia where the brand name on the package has been translated into an Asian script but the typeface design resembles the original logo. An associated advantage of local packaging, he notes, is the ability to comply with local and regional regulations such as food labeling requirements and environmental legislation.

In the case of more functional, fast moving products such as personal hygiene and care, household care, cleaning products, OTC pharmaceuticals and cosmetics, Sonneveld believes consumers in local markets are less sensitive to packaging variations. In these cases, the functional characteristics of the product or package may outweigh the need for localized package design. Since profit margins are usually larger in this category than in the food and beverage sectors, he thinks packaging design can be more universal. Economies of scale can then be achieved by making use of more centralized manufacturing and standard packaging.

In branding universal products such as consumer electronics, appliances, toys and the like, Sonneveld argues that packaging—at least in marketing and selling the product to consumers—has traditionally played a much smaller role than in the other two categories. Prospective buyers tend to be more focused on the design and functionality of the product than the packaging, he says. Aside from its role in drawing attention to the brand, the package in these categories largely serves to protect the product and facilitate transport. Brand owners in these segments, according to Sonneveld, are likely to reap the highest rewards when they minimize their packaging costs.

Virtual management

To reduce packaging costs associated with localization efforts, some global companies have looked to Internet-based virtual management tools. One virtual management company, Interbrand’s BrandWizard Technologies, has developed software that takes brand information and automatically channels it to product distributors around the world. In this way, packages in various parts of the world can retain the basic brand identity but display different information locally.

Richard Gerstman, chairman emeritus of Interbrand US, explains. “It might be the language that’s used on the packages or it could be the illustrations used on them. Certain things would change, but the basic brand look would be there.”

He says the technology provides economies of scale. “Global corporations can take their brands and their packages to different regions without each region having to work on its own. All the brand information on these packages comes through a central source and is channeled to different regions.”

BrandWizard’s vice president of marketing, Robert Thomas, says this strategy works best for decentralized companies. “One of our biggest clients is Hewlett-Packard,” says Thomas. “HP is trying to achieve global consistency in its packaging. The packaging doesn’t really change; the company is just trying to accommodate local languages and imagery.”

According to Thomas, HP is focused on using its color palette as well as its logo in such a way that customers will immediately identify a box with “HP blue” wrapped around it as an HP product.

Thomas concedes that the BrandWizard’s tools are not for everyone. “It’s a very customized solution. It’s time-intensive and fee-intensive, and it can take upwards of two to three years to develop,” he says. Thomas adds that his clients tend to develop packaging for large regions such as Europe or Africa, rather than for individual countries. As a result, a single package may have to display text in multiple languages.

Case in point: Hewlett Packard

Randy Boeller, a manager on Hewlett-Packard’s global packaging team, likes the flexibility that a decentralized approach gives him in adapting packaging materials regionally. He says this freedom allows him to better accommodate the processes that dictate material types, especially when moving away from paper and toward cushioning packaging. “Different processes are more readily available and more economical in different regions,” he notes.

Size and weight of the package are important considerations for Boeller when deciding whether to distribute globally or regionally. “When you change the size and weight, you’re changing the outbound logistics cost. The bottom line is that you are changing the amount of fuel it takes to deliver that finished good from where it was produced to where it will be sold. The smaller and lighter you can make it, the better,” he says.

In the case of Hewlett-Packard printers, production is localized within regions, and final packaging takes place locally. Products that can be localized with the fewest package modifications, on the other hand, are produced in one location and distributed worldwide from that location. These products tend to be small with high dollar value, and available in a limited number of stock keeping units. Products that may lose value rapidly due to advances in technology—digital cameras, for example—also fall in this category.

According to Boeller the physical structure of the package in most of these centrally distributed products is the same around the world, with mainly the graphics changing to meet regional needs. “But there are some exceptions,” he says. “It really just depends on a lengthy analysis of material costs, transportation costs, take-back fees where they exist and that