There's No Place Like Home
If you must reach local audiences to succeed, the web probably hasn't been your weapon of choice. But that's about to change. Larry Braitman gives the why and how.
If you must reach local audiences to succeed, the web probably hasn't been your weapon of choice. But that's about to change. Larry Braitman gives the why and how.
Over half of all traditional “measured media” spending in the United States goes toward local advertising, accounting for about $75 billion annually, according to research firm The Kelsey Group.
Newspapers, radio, outdoor and Yellow Page directories rely on local advertisers as a major source of their revenues. Billions more are spent on direct mail, card packs, free-standing inserts and other direct response vehicles targeting local audiences.
But on the Internet, local advertising has received little attention. To date, few of the “usual suspects” of local advertising (newspapers, radio, and Yellow Page directories) have met with much success on the web. So let’s talk about that, and think about the following:
Two types of marketers must reach local audiences:
The Hurdles
Like buyers of national advertising, local advertisers want to use the web’s unique ability to connect with customers quickly, easily and powerfully through response and interaction. In addition, local advertisers are value-driven, so the measurability of the web should be a natural choice. Despite obvious advantages, there are several hurdles to successful local web advertising programs. These include:
Although the existing providers of locally-targeted web advertising offer some partial solutions, they are vulnerable to one or more of these issues. Online versions of local entertainment guides and directories can be a great way to reach local consumers. But they are “impression bound” and cannot, therefore, increase their level of geo-targeted inventory without substantially increasing the traffic levels at their sites.
Key content categories may be sold out or otherwise unavailable. And despite loyal usage among a core audience, the reach among local web users may not yield the critical mass needed to justify the ad campaign. Like local content sites, the locally-oriented networks (e.g., Knight Ridder’s Real Cities or Cox Interactive Media) typically work with one or two sites in each market they cover, so they cannot easily expand their local reach. Finally, very few sites or networks have the sales and customer support infrastructure needed to service local advertisers profitably. These can be very small-ticket purchases that don’t justify the expense of a sales call.
The Solutions
Web advertising “business as usual” will not solve these issues. The industry has grown up serving national (and global) advertisers. As we speak, new models are emerging to meet the needs of local advertisers, including:
If you must reach local audiences to succeed, the web probably hasn’t been your weapon of choice. But that’s about to change. Ultimately, all categories of advertisers will be able to take advantage of the marketing potential the web has to offer.