A side-by-side comparison of recently released data with internet search behavior indicates that companies, particularly small business, may in part be misdirecting their internet marketing efforts.
We know that consumers are increasingly turning to local search to find products and services they need.
Google reports that local search is involved with 73% of all on-line activity.
Comscore, a digital intelligence firm, reports similar findings.
It says that 66% of Americans use local search to find products and services.
Moreover, consumers are acting upon their research.
Comscore also reports that 82% of local searchers follow-up with a phone call or a trip to your store.
However, a new report from American Express and reported in eMarketer shows that while a significant number of companies have increased their social networking activities, many respondents express disappointment in the results of those efforts.
According to the survey, while just one in 10 business owners reported using social networking for marketing last year, 39% indicated they did in September 2010.
Facebook was the clear leader among small-business owners, with 27% using the site to attract new customers, vs.
9% using LinkedIn, 8% using Twitter and 5% maintaining a blog.
American Express reports that while 39% of respondents said social media marketing has helped their business, a significant 17% said it hasn't helped.
Why? The problem may be in misaligned expectations.
Branding awareness--not sales--is often the best goal for social media usage, an important consideration that business owners may not understand.
This is not to suggest that social media usage is not important.
It is.
However, efforts should be targeted toward specific goals and sales expectations should be realistic.
Second, social media may not be the most important activity for companies, especially small firms who are stretching scarce resources.
It may be far more productive, especially in driving sales, to commit to local search.
The effort should begin with claiming a place on Google Places, submitting to local directories and developing a review process for customers.
Research conclusively shows consumers using local search to find products and services.
A primary interest of business is to be where consumers are looking.
That means local search.