White Paper: Local Search Usage Study 2009

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This white paper is an annual publication that portrays the year-over-year changes in consumers' search habits and media usage.

This white paper is an annual publication that portrays the year-over-year changes in consumers' search habits and media usage.

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  • 1. LOCAL SEARCH MARKETING: TARGETING CONSUMERS IN A DIVERSE MEDIA LANDSCAPE Local Search Study — Media Usage Trends White Paper General Findings September 2009© 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 1
  • 2. Targeting Consumers in a Diverse Media Landscape SEARCH IN A CONSUMER-CONTROLLED AND MEDIA-SATURATED MARKETPLACE In the past, companies successfully marketed to audiences through a few select media channels, but what used to work is no longer as effective. Mass marketing used to suffice because consumers only had access to a select number of businesses and a limited amount of media outlets for advertising exposure. Truth is, today’s consumers are inundated by an abundance of business choices and media channels, especially with the rise of interactive digital platforms. With so much multimedia available today, you would think reaching targeted consumers would be easier. But targeting your message is difficult in a media- saturated marketplace because potential customers are scattered across many different communication outlets. Not only do consumers have more media choices than ever, they are finding ways to block out marketing messages and can selectively control how they receive your advertising. This means that empowered consumers today are seeking out relevant business information when they need it or, more importantly, when they are ready to buy. This is causing marketers to change their approach of outbound marketing, or the process of reaching out to unsolicited audiences — often via mass advertising — with the hope of resonating with a few people. The focus today is shifting heavily toward consumer searches. Rather than take costly chances by marketing to uninterested consumers, companies are adopting marketing strategies that help them get found by searching consumers who have highly relevant, product- or service-specific needs. Marketers use consumer-initiated media channels to provide consumers with the information or direction they need — at the critical moment of purchase selection — to perform specific actions such as contact local businesses or make purchase decisions. The power has shifted to consumers, who now have the freedom to seek out businesses on their terms and through the media channels they feel most comfortable using. This marketing shift has created a booming, constantly evolving industry of consumer search among print, online and mobile platforms. In fact, total U.S. searches grew by 31 percent across all platforms between June 2008 and June 2009 (21.9 billion total searches in June 2009), spurred primarily by a growing base of 202 million searchers. But as consumers migrate to the Internet and other digital communication platforms, media usage is constantly changing, often leaving traditional methods in the wake of innovation. The good news for marketers is that consumers are searching for business information, but the question is, “How are they searching?” To help you arrive upon the best ways of getting found, we analyzed the latest media trends and developments so you can better understand the constantly evolving search landscape and its effects on consumer behavior. Our study findings provide the data necessary to help you develop search marketing strategies that apply a better use of a balanced, integrated media mix for connecting with your target audience across multiple platforms. As soon as you understand consumer media selection, you can begin to more effectively engage potential customers, yield measurable results, and meet your specific advertising and marketing objectives of growing your brand awareness and sales. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 2
  • 3. Targeting Consumers in a Diverse Media Landscape LOCAL SEARCH STUDY OBJECTIVES AND METHODOLOGY The objective of our annual study, commissioned through comScore, was to monitor the shifts in consumer behavior and media selection within the framework of local search. Understanding these shifts helps us determine how consumers use search engines as well as print and Internet Yellow Pages. In order to get the most accurate depiction of consumer search, our study consisted of two parts: survey results and observed online behavior. These two components help us determine if what consumers say about their search experiences are in line with how they actually search. Survey Results Survey results were collected in Q2 and Q3 of 2009. All behavioral data is from Q2 2009, while our survey was fielded and completed in July 2009. For survey purposes, local business search is defined as follows: “Local business information includes details such as the business name, phone number, address, hours of operation, specials, promotions, products carried, payment types accepted, etc.” Surveys were administered to actual online users of local business search platforms. Our survey sample was based on comScore’s proprietary panel of two million online consumers. Panelists were e-mailed an invitation to participate in the survey, which required approximately 15 minutes to complete. Survey results are based on 4,000 completed responses, which we collected and grouped into three major site categories (see Table 1). Observed Online Behavior Observed online behavior results are based on a sample of one million consumers who agreed to have their online search behavior monitored anonymously. IYP: Internet Yellow Pages (+/-2.8) Local Search Sites (+/-2.9) General Search Sites (+/-2.4) Superpages Google Local/Maps Google YELLOWPAGES Yahoo! Local Yahoo! DexKnows MSN Local (Live.com/Bing) Bing Yellowbook Citysearch AOL Local.com Ask City.Ask.com/Maps.Ask.com MapQuest Margin of error: all respondents (+/-1.6). *These three groups, which are referenced throughout our study, have been identified to show that consumers search differently online, depending on their search needs. Table 1. Local Search Site Categorization. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 3
  • 4. Targeting Consumers in a Diverse Media Landscape LOCAL SEARCH STUDY HIGHLIGHTS We studied the evolving, vast search landscape to bring you the latest media usage trends from 2009, so you can revise your current search strategies and make applications of your learned knowledge to future campaigns. While some trends changed little compared to 2008, we continue to see overall patterns that will affect the future of search. Here is what you can expect from our findings at a glance: » As predicted, print media is declining in a growing digital marketplace, as consumers are referencing local business information through alternative methods. While 84 percent of local business searchers own a print directory in their homes, this population has been steadily declining since 2007. Forty-one percent of local business searchers spend the vast majority of their time searching for local businesses online instead of offline, up markedly from 26 percent in 2007. » Yellow Pages usage may be down by three percent, but Internet Yellow Pages (IYP) are experiencing significant growth, perhaps a spillover effect from loyal print Yellow Pages users transitioning to digital. For example, Yellowbook Network increased its share of IYP/local searches by six points compared to 2008. This shows that consumers are still using the Yellow Pages, just in different ways. » Google, which started as a general search site, has developed applications that have overtaken online business directories in both IYP/local and local portal searches, with market shares of 26 and 45 percent respectively. In fact, IYP and local sites split share of IYP/local searches, with local searches growing from 40 to 51 percent over 2008, attributed mostly to Google Maps’ growth. » Mobile search continues to experience growth, as more consumers have access to mobile devices with Internet browsers and applications. » As youth and seniors continue to age, search will be affected. Approximately 41 percent of youth, ages 18 to 24, utilize search engines for business information. Comprising the core of traditional White/Yellow Pages usage, nearly 49 percent of searchers 65 years old or more rely on print White/Yellow Pages. Based on this data, search engines will continue to grow in traffic, while print directories will likely decline. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 4
  • 5. Targeting Consumers in a Diverse Media Landscape PRIMARY SOURCE OF LOCAL BUSINESS INFORMATION The results from 2009 have been tabulated, but these findings do not suggest adopting an exclusive search marketing position. Instead, our study proves that truly effective search marketing strategies should be all encompassing to include a diverse, cross-platform mix of media sources for local business information, including thriving platforms mobile and social media (see Table 2). While a sizeable portion of local business searchers use print as their second-most referenced source, offline media continued to decrease in popularity compared to last year. Despite popularity, usage of print directories remains consistent among those people who do own Yellow Pages. In fact, of print directory owners, many had multiple directories in their homes for the purpose of covering different geographic regions. Furthermore, nine out of 10 print directory users believe that the Yellow Pages are a valuable source of shopping information. Our study also revealed that search engines comprise a significant portion of search traffic for local business information, although the percentage remains unchanged from 31 percent in 2008. On the other hand, local search sites have grown by one percentage point over last year’s 11 percent, and IYP sites have increased in usage from 19 percent in 2008 to 21 percent in 2009. These numbers prove that while offline media is declining in popularity, online search is a legitimate source of local business information. In fact, Google, Yahoo!, Ask and Bing searches grew over the previous year, and even non-search engines such as Craigslist and eBay show strong yearly growth from June 2008. But Yellow Pages providers are adapting to the burgeoning sector of Internet solutions by implementing IYP. By adapting to the world of online search, the Yellow Pages are proving to be a competitive and effective cross-platform reference: IYP sites (21 percent) and print White/Yellow Pages (28 percent) combine for a total of 49 percent of searches for local business information, not counting other printed directories. 100% 13% 11% 12% Social networking sites 80% Cell phone/wireless device 17% 19% 21% Directory assistance (phone) 60% Local search sites 30% IYP sites 31% 31% Search engines 40% Other printed directory Local newspaper or magazine 20% 33% 30% 28% A print YP or WP directory 2007 2008 2009 Table 2. Primary Source of Local Business Information. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 5
  • 6. Targeting Consumers in a Diverse Media Landscape CONSUMER SEARCH INTENT: UNDERSTANDING THE ROLES OF ONLINE AND OFFLINE MEDIA IN PURCHASE SELECTION Consumers engage in different types of searches at various stages of the purchase cycle. Purchase decisions consist of both research and purchase processes. Typically, online search happens early in the purchase cycle, commonly used for research into the products or services that meet consumers’ needs. Consumers typically conduct offline searches when ready to make their purchase transactions, often consulting print directories for store locations or phone numbers of their nearest brand providers. We sometimes refer to the consumer buying process as the ROBO effect — research online, buy offline. This demonstrates the need to create cross-platform search marketing strategies, as both online and offline solutions are integral to the consumer purchase process. Holding true to last year’s study, findings for 2009 show that online search is used earlier in the purchase process, with four out of 10 consumers using it for research about the best brands to buy. According to our results, 39 percent of respondents, compared to 42 percent in 2008, rely on online search for research purposes to aid in purchase selection. Only 17 percent of consumers go offline to conduct research to help in the decision-making process, yet this number is up by one percent over 2008. Furthermore, our study once again indicates that offline search is used overwhelmingly when brands have been researched and businesses that carry those brands have been identified. In fact, 40 percent of consumers — down by just one percent from 2008 — engage in offline search behavior to get information about the local businesses they have selected/identified for completing their purchase transactions. Only 19 percent of consumers — the same as 2008 results — went online to find details about the identified businesses that carry the brands they need. Online Of ine 100 19% 19% 25% 80 41% 40% 44% 17% 17% 21% 60 23% 25% 21% 18% Researching to help decide 18% which P/S will ful ll my needs. 22% 40 Looking for info about a speci c P/S that I have already decided ful lls my needs. 23% 24% 23% Comparing businesses that 42% provide the P/S that I have 20 39% already researched/identi ed. 32% Looking for a particular business from which to buy the P/S that 15% 16% 17% I have already researched and identi ed. 2007 2008 2009 2007 2008 2009 Table 3. Local Business Search Behavior. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 6
  • 7. Targeting Consumers in a Diverse Media Landscape MEDIA USE FREQUENCY: ENGAGING CONSUMERS MORE OFTEN IN THE SEARCH CYCLE When looking at media usage frequency, print and online Yellow Pages users look to be the least engaged of all media consumers. For example, 71 percent of respondents refer to print White/Yellow Pages directories less than once per week, while only one percent of consumers use these directories every day. Fifty-four percent of our survey sample indicated using IYP sites less than once a week, compared to three percent using these sites daily. These findings are in alignment with what you would expect from this media, as Yellow Pages are typically used later in the purchase cycle when businesses have already been identified and consumers are ready to purchase. Online search, however, is used much earlier in the purchase process to research products and services. Because consumers are likely to spend more time online researching general sites about the best brands to buy than perusing the Yellow Pages for local business contact information, search engines are frequented more often. View Table 4 to see how search engines and local search sites are used more frequently on both a weekly and daily basis. As local search sites such as Google Maps continue to increase in usage, particularly for driving directions, expect these numbers to grow over the next year. And businesses should pay close attention to the trends in media usage toward online social networking, as social media usage has changed to be an almost daily event. Nearly 26 percent of our respondents use social media on a daily basis, 34 percent use it weekly and only 24 percent less than once per week. Cell phone/wireless device 31% 16% 36% 17% Directory assistance (phone) 51% 23% 17% 9% Social networking sites* 24% 34% 16% 26% Local search sites 42% 25% 27% IYP sites 54% 23% 21% Search engines 40% 23% 25% 12% Other printed directory* 65% 12% 18% Local newspaper or magazine 35% 34% 16% 16% A print YP or WP directory 71% 17% 11% Less than once a week A couple of times a week Once a week Every day *Small sample. Table 4. Frequency of Use (2009). © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 7
  • 8. Targeting Consumers in a Diverse Media Landscape HOW CONSUMERS (RE)SEARCH SITES TO MEET EXPECTATIONS On the previous page, we assessed how consumer intent correlates to frequency of media use. This page analyzes how consumer expectations are driven by intent and may also affect how frequently certain platforms are utilized. We were interested in consumer expectations when researching online and whether these expectations were factors in the types of search sites people use. For the purpose of this study, we identified how consumers are engaging in online research among IYP, as well as local and general search sites. After asking study participants about their primary online search goals, we concluded that consumers have expectations over the type of search results they will find when researching brands and searching for business information. To meet their expectations, searchers are likely to refer to certain sites to access specific information. In other words, consumers’ expectations shape the decision to use certain sites over others during the purchase cycle. Online users reference IYP, local search and general search sites in different ways, plus they expect different results when going to these search portals for ratings and reviews, hours of operation, driving directions, phone numbers and more. According to our annual local search study, one-third of IYP searchers visit with the primary goal of getting phone numbers for businesses. Consumers also expect to find local business information such as addresses and hours of operation (second and third, respectively) on IYP sites. In contrast, general searchers are more likely than IYP searchers to conduct research about products or services of interest. Local searchers (Google Maps, for example) are more likely than IYP searchers to go to the sites specifically to get driving directions. How consumers use these sites for local search is an interesting occurrence worth noting, as our study findings show that, for the first time, general search market share leader Google (more specifically, Google Maps) has leaped ahead of the major IYP and local search sites as the local search category leader. 15% Google (Maps) So what is driving Google 26% Maps’ growth? At quick 16% Yahoo! (Local, Maps, YP) glance, the growth of 17% Google Maps seems to be AT&T Interactive Network 17% (Formerly YELLOWPAGES.com Network) 15% due primarily to increased 26% use of the site for driving Superpages.com Network 15% directions (Google Maps 6% over indexes in driving Yellowbook Network 12% direction searches versus 9% IYP, which over indexes in AOL (MapQuest, CityGuide, YP) 6% business contact searches 7% Microsoft (Local, Bing Maps, YP) such as phone numbers). 4% However, a closer look at 3% R.H. Donnelley (Dex) this trend reveals a much 2% June 2008 deeper explanation. Yelp 2% June 2009 Table 5. Local Search Market Share (2009). © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 8
  • 9. Targeting Consumers in a Diverse Media Landscape In its quest to become a one-stop resource, Google set out to change consumer behavior. In early 2008, Google expanded its local business results, which typically appear when a geo- designated search is conducted in the area at the top of the search page (commonly referred to as the OneBox), from three local business listings to 10 listings. This change essentially allowed Google’s local listings to dominate more real estate on the first page of search results, while pushing all other results farther down the page. If the aforementioned change did not ensure an increase in Google Maps traffic, the latest change certainly sealed it. In March 2009, Google started using Internet Protocol (IP) geo targeting to show local results for search queries that expressed local intent — even when no geo designator was specified. In other words, Google Maps’ local business results are now appearing for searches that do not specify exact locations. For example, the search query “dentist in Seattle” on Google will show relevant, local Google Maps business results on the search page. But when a user searches for a general term such as “dentist” without specifying location (“dentist in Seattle”), Google’s 10 Pack now appears in the middle of the results page. This development coincides with the surge in Google Maps traffic seen in our latest report. Meanwhile, IYP sites are experiencing a decrease in organic clicks and an increase in sponsored clicks, averaging to a steady number of clicks overall. With Google’s recent change to include local information in results where local is implied and not stated (for example, “pizza”), Google Maps has created new possibilities for local searchers and has redefined how consumers use sites to meet their demands. 100% Other 6% 6% 5% 8% Read ratings 9% 8% 12% and reviews 80% Get hours of 17% 9% operation 21% for a business 31% 6% Research 60% 21% products/services 14% 17% Get driving directions Phone number 40% 21% 19% 19% 26% Address/Location 20% Find a business 26% that has the product/ 29% 27% service needed 21% All IYP Local General Table 6. Primary Goal of Online Local Business Search. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 9
  • 10. Targeting Consumers in a Diverse Media Landscape CONSUMER SEARCH BEHAVIOR AMONG SEARCH PLATFORMS Consumer search behavior certainly varies by the sites used and categories searched. Our study reveals search differences for the types of sites that consumers reference for their specific needs. For example, IYP searches account for nearly half of “Home Services” category searches. General search is the largest in most categories, particularly “Home Improvement” and “Banking & Finance.” Local search is the largest in the “Child Care” category, with 46 percent share. These findings show that local search cannot be looked at as a one-size-fits-all strategy. Consumers are becoming savvier searchers, and they know where to go for the information they need. As a result, marketers need to ensure that their advertising strategies align with consumer intent and expectations across the different search sites. 100% 74% 30% 31% 29% 80% General 45% 60% 54% 58% 61% 66% 60% 76% Local 25% 31% 86% 95% 23% 46% 40% 13% IYP 10% 8% 45% 20% 34% 20% 15% 39% 33% 32% 29% 32% 19% 5% 25% 3% 11% 14% 8% 4% 8% 2% re e a es s s e s e e s t t ie el ol zz ag ce tis en ic nc nc Ca ic or ot ho rv Pi en vi em ra na or rv Se eg M er ild Sc su Se St D Fi ov tS at Ch & In to & & e pr lC en el om Au g g Im ot in in Al m H H ov nk oy e om Ba M pl Em H Table 7. Distribution of Category Searches. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 10
  • 11. Targeting Consumers in a Diverse Media Landscape CONSUMER SELECTION CRITERIA: SEARCH WITH A LOCAL FOCUS At TMP Directional Marketing, our tagline is “Search With a Local Focus.” This section shows how this phrase is fitting for our agency, which is the largest local search marketing firm. Our market study not only looks at the consumer search cycle and how consumers arrive at the information they’re looking for, but it also analyzes the determining factors shoppers consider when selecting the businesses to contact and/or make purchases. While consumer search behavior and intent vary across the different types of online search platforms — IYP, local and general sites — one factor remains consistent in shaping consumer purchase selection: business location. According to 2009 results, business location is the most important selection criterion consumers consider when making a decision to contact or purchase at a specific business. In addition to topping the list for consumer search criteria, business location consistently ranks high across the three site categories, proving that consumers search online, but they prefer to shop locally offline. Table 8 proves that consumers search with a local focus, with an average of 35 percent choosing a business based on location across all search sites (the greatest differential is only two percent when comparing each type of search site side by side). 40% 36% 36% 35% 34% 35% All IYP Local General 32% 30% 30% 30% 26% 25% 20% 15% 12% 11% 11% 10%10% 9% 9% 10% 7% 6% 5% 5% 5% 4% 4% 4% 4% 5% (+1) (+3) (+1) (0) (+2) (0) (+3) (+2) (0) (+1) (+1) (0) (-1) (-2) (-4) (0) (0) (+1) (-2) (0) (0) (+1) (0) (0) Business(es) Most familiar First business in Consumer ratings/ Business(es) with Bolded/highlighted location business(es) results list reviews YP print ads business(es) Table 8. Selection Criteria. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 11
  • 12. Targeting Consumers in a Diverse Media Landscape As search continues to advance with technology and interactivity, consumers expect more relevance in their searches. Among all local searchers, more consumers than last year expect the businesses in their local search results to be within a closer proximity of their physical location. In 2008, 36 percent of searchers were looking for businesses within six to 15 miles of their home or place of work. According to 2009 results (see Table 9), 42 percent of users want a business within that same distance. The second factor that consumers weigh in the selection process is familiarity with the business being considered. In fact, familiarity is more important to IYP searchers (32 percent) than local searchers (26 percent). For a consecutive year, only 11 percent (average across all three search site categories) of consumers select a business based on its placement within search results, yet this selection criterion is a valuable and powerful factor when attempting to reach local consumers. Although placement is not the top factor consumers consider when selecting a business, the position of your listing often makes the difference in attracting any consideration in the first place. Why? Approximately seven out of 10 search engine users do not look past the first page of search results. Expected Distance 2007 2008 2009 1–5 16% 23% 21% 6–15 36% 36% 42% 16–20 12% 12% 17% 21–50 30% 23% 13% More than 50 6% 6% 8% Table 9. Expected Distance. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 12
  • 13. Targeting Consumers in a Diverse Media Landscape THE IMPACT OF CONSUMER-GENERATED CONTENT ON PURCHASE SELECTION In the burgeoning digital media landscape of interactive interfaces, the popularity of user- generated content is not only growing but is also shaping consumer purchase selection. Consumers today value brand endorsements and recommendations from fellow shoppers, and the convenient accessibility of the Internet makes researching products and services more efficient. Today, an abundance of social networking sites, blogs, forums, discussion groups and communities dominate the Internet, and consumers are talking among themselves about their experiences — both positive and negative — with businesses and brands. In fact, online review submission rates increased from 2008 to 2009. With this information readily available at the click of a mouse, companies are also changing their approach to online marketing. These social platforms have played a major role in the marketing shift of consumers seeking 2007 2008 2009 out businesses for their needs 52% to businesses All 56% 57% proactively interacting with consumers to not 0 10 20 30 40 50 60 Table 9. Importance of Consumer Reviews. only build their brand and brand awareness but also to monitor their brand perception. In the past 3 years, consumer-generated ratings and reviews have continued to increase in importance among consumers looking to make purchase decisions. As the online social media phenomenon continues to gain momentum, we stay at the forefront of consumer-generated content by monitoring its usage and any recent trends or developments that may affect the future of search marketing. We anticipate growth in the usage of consumer ratings and reviews, which will continue to impact the consumer selection process in the near future as such information becomes more conveniently accessible across various search sites. 35% 32% 30% 27% 28% 27% 26% 25% 24% 24% 25% 22% 22% 22% 20% 16% 15% 2007 10% 2008 5% 2009 All IYP Local General Table 10. Usage of Consumer Ratings and Reviews. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 13
  • 14. Targeting Consumers in a Diverse Media Landscape WHAT AGE SAYS ABOUT HOW YOU GET BUSINESS INFORMATION On the previous page, we looked at the growing trend of user-generated content and its impact on consumer purchase selection. To show that usage of online consumer ratings and reviews is driven by demographics, this portion of the study looks at age differentials and how age affects the ways consumers search. According to our 2009 study, younger generations (grouped into two categories: 18–24 and 25–34) are more likely to use interactive media such as cellular phones, mobile devices (PDAs), Internet search engines such as Google and Yahoo!, as well as local search, IYP and social networking sites. In a study of local business searchers, 71 percent of those using social networking sites indicated they are more likely to make purchases after searching. This has been helped by recent partnerships between social and local sites in an effort to add relevance and geo targeting to the consumer search experience, a trend we expect to continue well into the future. For example, consider the recent implementation of Facebook Connect functionality on the Citysearch website, as well as a partnership between MySpace Local and Citysearch. In terms of Facebook, visitors can easily switch from Citysearch to Facebook and vice versa. This functionality has led to an increase in cross visitation that can be attributed to site promotion by both platforms. In fact, the partnership has led to a substantial increase in the number of Facebook users who visit Citysearch’s site, plus the number of monthly visitors to both Citysearch and Facebook websites has increased by 67 percent since June 2008. Meanwhile, older local business searchers tend to utilize offline channels, primarily print Yellow/White Pages directories and other print directories. Zero percent of consumers, ages 55 or more, use social media as a primary source of local business information. It appears that youthful consumers are more likely to adopt the diverse mix of digital media, including online ratings and reviews, in their quest for local business information. As today’s youth and seniors continue to age, the consumer search process and how consumers access local business information will continue to shift heavily toward digital media. In the meantime, digital marketers need to adopt a balanced, diverse media mix to reach intended audiences, both young and old. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 14
  • 15. Targeting Consumers in a Diverse Media Landscape Age 18-24 25-34 35-44 45-54 55-64 65+ A print Yellow Pages or White Pages directory 11% 13% 24% 31% 39% 49% Local newspaper or magazine 4% 2% 3% 2% 3% 3% Other printed directory (community directory, 0% 0% 0% 1% 1% 1% university directory, etc.) Directory assistance 4% 3% 2% 1% 2% 1% Your cell phone or other wireless device (PDA) 2% 3% 1% 1% 0% 0% Search Engines (Google, Yahoo!, Bing, etc.) 41% 39% 35% 29% 24% 20% Internet Yellow Pages sites (YELLOWPAGES, 18% 24% 23% 23% 19% 15% SuperPages, Yellowbook, etc.) Local Search Sites (Google Maps, 13% 15% 11% 11% 11% 8% Yahoo! Local, etc.) Social networking site (MySpace, 4% 2% 1% 0% 0% 0% Facebook, etc.) Other 3% 0% 0% 1% 0% 2% Table 11. Primary Source of Local Business Information by Age. 4% Via website 29% 6% Via website 46% In person In person 35% Via phone 37% Via phone 71% No No 54% 28% Yes 15% Yes All Social Networkers Table 12. Post-Search Purchases Among Social Networkers. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 15
  • 16. Targeting Consumers in a Diverse Media Landscape REACHING ON-THE-GO CONSUMERS THROUGH MOBILE SEARCH Not only are today’s consumers spread out across a variety of media platforms, they are also on the go and difficult to reach. But these mobile consumers still have a need to access local business information. Our study proves that as more mobile phones and PDAs come equipped with Web-based functionality, consumers are using mobile applications to search for local content. By engaging in mobile marketing, businesses can reach a growing base of on-the-go consumers. Among local business searchers with Web-ready mobile devices, 32 percent conducted local business searches from the mobile Internet, an 11 percent increase from 2008. Smartphone owners are three times more likely to conduct this type of search. Overwhelmingly, Growth in Local Mobile Content by Genre the preferred Three-Month Average Ending June 2009 Versus June 2008 mode to access Number of Mobile Subscribers (MM) local content Local Mobile Content Genre Y/Y Percent Change remains the Online Directories 42% mobile browser, Maps 41% with nearly Restaurants 37% 22 million Movies 30% users through Table 13. Mobile Local Business Searches. June 2009. Downloaded applications for mobile devices surged in popularity, with 127 percent more users accessing local content via these applications compared to June 2008. Also, the number of mobile users looking for local information via SMS grew by 27 percent year over year. Among the various local content categories, the number of people accessing online directories and maps saw the greatest increase (42 and 41 percent, respectively), followed by restaurants and movies (37 and 30 percent, respectively). 80% 67% 70% 64% I have not conducted a local business search 60% 60% 54% from my mobile phone. I have texted directory 50% assistance from my mobile phone. 40% 32% I have called directory assistance from my 29% 27% 30% 22% 21% 23% mobile phone. 20% 19% 20% I have conducted a search through the Internet browser or 7% 10% 4% 5% an app on my 3% mobile phone. All (2008) All (2009) Standard cell phone Smartphone with data connection Table 14. Growth in Local Mobile Content by Genre. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 16
  • 17. Targeting Consumers in a Diverse Media Landscape POST-SEARCH ACTIVITY AND ITS EFFECT ON YOUR BOTTOM LINE Up to this point, our findings have assessed how consumers are searching for you, so you can determine if areas of search marketing are in need of revisions or if programs would benefit from alternative strategies. This study helps you provide consumers with the information they expect and when they need it to make informed purchase decisions. The entire process leads to the area of the consumer search cycle that will potentially grow your business: post-search activity. Across all the different search sites studied, the majority of consumers choose to contact businesses offline via an in-person visit or phone call following their online searches. According to our study, local business searchers in 2009 are more likely to visit businesses in person and contact the businesses over the phone than they were in 2008. In fact, the number of local search site users willing to make an in-store visit increased from 34 percent in 2008 to 46 percent in 2009, representing the highest jump in post-search activity among consumers. Another notable increase is among general search site users, as 33 percent followed up their searches via the telephone in 2008 and improving to 44 percent in 2009. The majority of local business searchers only contacted one business, while IYP users are more likely than local and general users to contact at least one business. 60% 56% 50% 46% 44% 46% 38% 40% 37% 34% 34% 30% All IYP 20% 14% 14%14% 15% 14% 12% 13% 12% Local 10%11% 11% 8% 10% 6% 7% 7% 6% General Performed additional Performed additional Planned to contact Contacted Contacted business Visited the business research of ine research online business in the future business online owner over telephone (in-store visit) Table 15. Percent of Respondents With Successful Visits. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 17
  • 18. Targeting Consumers in a Diverse Media Landscape LOCAL SEARCH STUDY SUMMARY Since 2007, the trend across all searches is that more users are searching for personal reasons, less for business purposes. This creates a need for companies to develop positive user experiences and relevant business information across all search platforms, so consumers can develop good impressions about your brand and make informed purchase decisions. Whether your consumers are engaging in mobile, online or print searches, search satisfaction remains relatively high. Survey respondents were the most satisfied with online searches, followed by searching for local businesses on their cell phones. When dissatisfied, a majority of consumers blamed content: not being able to find what they were looking for or a lack of product/service information. While the Internet is the most satisfactory source of local business information among consumers, traditional media and burgeoning mobile solutions hold relevance in today’s search landscape, demonstrating the need for businesses to integrate cross-platform strategies. Based on our findings, companies should allocate marketing dollars to the distribution of different media channels because consumers today use a variety of sources for local business information, sometimes several sources for single purchase decisions. As both innovative and traditional sources continue competing for consumer search traffic, businesses need to focus on developing a complete search presence. The idea is to diversify your search marketing to help consumers find you, regardless of how they’re searching. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 18
  • 19. Targeting Consumers in a Diverse Media Landscape ABOUT US TMP Directional Marketing | 15miles From the first Yellow Pages advertisement to comprehensive local search marketing strategies, we are an experienced leader in the industry. In 1967, our agency was the first to recognize the potential of Yellow Pages advertising. In the 1990s, we were the first to develop interactive advertising solutions, due to our affiliation with Monster Worldwide. Today, we are the largest local search agency, working in tandem with our interactive division 15miles to offer online, offline and mobile search solutions. Our clientele consists of top national brands and more than 100 of the Fortune 500 companies, who rely on us to position their brands at the forefront of consumer searches through print advertising, Internet Yellow Pages listings, social media, and mobile and search engine marketing. With headquarters in New York City and more than 15 offices in the United States and Canada, we apply the advantage of national scope and the personalization of local perspective to our integrated marketing campaigns. Over the years, we’ve built an industry, understanding local search marketing better than any other agency. comScore, Inc. comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world. Its capabilities are based on a massive, global cross section of more than two million consumers who have given comScore permission to confidentially capture their browsing and transaction behavior, including online and offline purchasing. Panelists also participate in survey research that captures and integrates their attitudes and intentions. Through its proprietary technology, comScore measures what matters across a broad spectrum of behavior and attitudes. Its analysts apply this deep knowledge of customers and competitors to help clients design powerful marketing strategies and tactics that deliver superior returns on investment. For more information, visit comscore.com. Citation When referencing this study, please cite as the following: “TMP Directional Marketing & comScore Local Search Usage Study, Q2 2009.” Contact For more information on this study or our offline and interactive marketing services, please contact us at 866-738-4127 or visit us online at tmpdm.com or 15miles.com. © 2009 TMP Directional Marketing | www.tmpdm.com | www.15miles.com 19