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Study: Advertisers Baffled by Local Online Ad Practices

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Oct 2, 2008 

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Kathleen  |

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Study: Advertisers Baffled by Local Online Ad Practices

ADOTAS – National advertisers are interested in local online advertising, but are confused about the best tactics and traffic sources to use, and how to effectively measure the results and return on investment, according to a new study conducted by Sterling Market Intelligence and commissioned by Marchex.

The study found that almost half of the national advertisers surveyed are pursuing local online advertising, and more than 40% are dedicating at least a quarter of their online marketing budget to local targeting.

“The data shows that national advertisers clearly understand the Internet drives in-store sales and they’ve begun to integrate local into their marketing mix,” said Greg Sterling, Principal of Sterling Market Intelligence. “However, they’re all over the map in terms of traffic sources and success metrics; there’s a general absence of consistent tactics and understanding of best practices for local.”

Other findings:
• Almost half of survey respondents report that at least 25% of their in-store sales were driven by online marketing
• More than half of respondents are using different messaging or tactics for different geographic or local markets
• Only 10% of respondents are targeting down to the DMA, city or ZIP code level

“National advertisers are clearly trying to leverage local online advertising to increase local leads and drive sales, but this study shows they’re having a tough time figuring out what’s working,” said Ed O’Keefe, VP of Performance Marketplaces at Marchex.

The study, conducted between September 11 and September 21, 2008, surveyed 150 national advertisers or agencies that offer products and/or services through local outlets, dealers, franchises or branded stores across more than one state.

Tags: finance, geo-targeting, interactive-advertising-study, internet-advertising-news, internet-marketing-advertising, local-advertising and ROI

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