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SMBs Go Hyperlocal to Find New Customers

Advertising targeting local content drives new business

March 6, 2012 | Advertising & Marketing

Many national advertisers are boosting their local online efforts, while small and medium-sized businesses remain major contributors to local spending. For them, the ability to drive new customers in the door is the top goal.

Research from hyperlocal publisher Street Fight found that nearly half of US SMBs consider finding new customers the most important factor in their decision to run a local marketing campaign. Fewer than a quarter were most concerned with their ability to target just the right people, and only 16% said they enacted local campaigns to bring back repeat customers.

Most Important Factor When Deciding to Run a Local Marketing Campaign According to US SMBs, Jan 2012 (% of respondents)

A majority of respondents in “The Local Merchant: Inside the Minds and Motivations of the Business Owners Driving a $43 Billion Advertising Market” report indicated that hyperlocal publishing sites—like Street Fight’s—were the most effective platform for achieving their local advertising goals, while nearly a third cited daily deals as the best way to reach their objectives, suggesting that daily deals are not primarily aimed at repeat customers but new business.

Most Effective Hyperlocal Platform for Achieving Their Marketing Goals According to US SMBs, Jan 2012 (% of respondents)

Location-based services, meanwhile, were chosen by just over a quarter of respondents as the most effective hyperlocal platform.

Researchers are split in their projections of the total growth in ad dollars that will go to local online spending in the coming years, largely due to differing methodologies. But most agree that growth will be steady through 2014, as advertisers of all stripes rely on local to target the right customers at the right time.

Comparative Estimates: US Local Online Ad Spending Growth, 2011-2014 (% change)

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Check out today’s other articles, “China’s Massive Web Audience Turns to Social, Mobile, Video” and “Case Study: Renault México Drives Leads With Social Media.”


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