Local Advertisers Still Skittish About Search

For years, online advertising companies have argued that advertising alongside Web search results is a great way for local businesses to reach prospective customers. Yet many local advertisers appear to be ditching search.

A new study on local search advertising from research firm Borrell Associates finds that roughly 50 percent of businesses that buy search ads directly from Google (GOOG) and other Internet search companies don’t come back the following year. And the churn rate for businesses like Yodel, ReachLocal and LookSmart that purchase search ads on behalf of local advertisers is around 60 percent, according to the study, scheduled to be released Monday. In comparison, the churn rates for cellphone or cable providers are often just a few percentage points per quarter.

Search ad giant Google declined to comment on the report, which was funded by Clickable, a startup that sells software to help companies manage their search advertising campaigns.

Read the rest of this post on the original site


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »