The Kelsey â€œDrilling Down on Localâ€? conference has started. John Kelsey opened with a speech that noted 80 percent of all purchases are made with five miles of the home, and more consumers are turning to the web for local shopping information. Itâ€™s a strong market growing stronger. Video is going to be an essential part of local web advertising.
Neal Potachek and Matt Booth from Kelsey then shared 7 predictions for 2007 through 2011.
Prediction #1: More than 50 percent of small business advertisers will include vertical or specialized directories as part of their advertising mix.
Prediction #1: Even though half of small businesses maintain a web presence, these businesses will have a disproportionate influence on the web over the next few years.
Businesses with web sites are growing and expanding their businesses. Revenue generation trumps businesses without web sites by a factor of two to one.
Prediction #3: Video will be integrated into small business web sites.
Sixty percent of consumers say they have watched an online video ad, and 57 percent who have watched moved closer to a transaction.
Prediction #4: Twenty percent of small businesses will advertise on mobile platforms.
There is a great deal of latent demand for information on mobile. Only eight percent of consumers say they have no interest in mobile web. Most people simply donâ€™t have the access right now.
Prediction #5: Small businesses will embrace consumer and expert feedback.
Businesses that have consumer reviews online see twice as much traffic to their web sites and garner twice as many click-throughs as businesses that donâ€™t have consumer feedback.
In the past 18 months, consumer feedback and consumer message board postings have increased 131 percent.
Prediction #6: Small businesses will embrace bundled buys.
In one survey, small business owners say that yellow page advertising reps should be able to handle all of a businessâ€™s advertising needs.
The market is becoming more fragmented and there are more advertising choices. Small business owners need more help sorting it all out.
Prediction #7: Connected software services are growing in importance.
Intuits new QuickBooks Point of Sale product is growing at a rate of 30 percent. The product allows small businesses to manage their inventory digitally and upload product information, photos and inventory to the web.