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Most businesses are now familiar with online directories and recognise that they are quickly replacing traditional paper directories like Yellow Pages.

In my mind, they are becoming more and more popular, especially for smaller businesses, for two very simple reasons.

Firstly - for the consumer - they provide the results quickly (when was the last time you dug out a Yellow Pages, lugged it onto your lap and leafed through to find the right section?) and they offer so much more information - links to websites, maps and directions for starters.

Secondly - and here’s the crucial bit for SMEs - they frequently appear on the first page of search results. This means that for businesses who would normally struggle to have such a high natural ranking, they have a very cost effective way of reaching target audiences.

Run a search on a business and look at the results - how many of them online directories?

Don’t forget that as well as general directories, there are also more specialist online directories emerging that feature well on local searches. These are dedicated to a certain type of business, ranging from accountancies through veterinary care practices, and offer a great opportunity for SMEs in a specific industry sector to be found online.

There are also opportunities for enhanced listings within any directory, so it’s worth shopping around. You can check out some of the single industry sites here, or hunt around on Google or Yahoo!Local to see what may work best for you in your local area.

Latest news from the IAB International Advertising Bureau UK:

“Search is the most popular online activity”

New research has shown that using a search engine is the main reason we log on to the internet across the country.

So if 80% of us are logging on to use a search engine to track down what we’re looking for, making sure you can be easily found online becomes crucial if you need to reach these people.

There are a whole range of strategies out there - here are just a few - but whether it’s through optimising your website, taking advantage of paid-for search advertising, or getting a listing on a directory that ranks well on searches, don’t miss out on someone who may be looking for your product or service. They may even be looking right now…. Why not do a search for your business and see how easy you are to find?

Interesting quote from John Walker, National Policy Chairman of the Federation of Small Businesses

“The number of small businesses who have their own website has grown over the past two years, which indicates that small firms are becoming increasingly internet-savvy. Despite the onset of an economic downturn, all small firms should look to the internet to maximise their sales and increase efficiency.”

 There you have it; straight from the small business’ horses mouth – make sure you have an online presence.

The survey they carried out found that 70% of small businesses now have their own website, which is an increase of 25% from 2006. I still think all businesses need one – no matter what size you are. It is, after all, your shop window these days as the internet is part of life for customers now.

Even if you don’t have an all-singing, all-dancing website, you could always set up a splash page to tell people where you are and what services and goods you are selling. It’s worth remembering that the web is not just a tool for marketing, it is a business tool as well, and even the smallest business can benefit from having an online presence.

Amongst the typical blog discussions on online advertising and search behaviour, details about who you are actually targeting are often missed out.

Who is it looking at your website?

There are some good recent stats from 2008; according to the Internet Advertising Bureau, there are now 32m people online, which accounts for 65% of the total adults in Great Britain, and 76% of internet users are now going online every day or most days.

The most popular online activities are as follows:

• Using email - 29.9m
• Sourcing info on activity/interest - 24.5m
• Site of a particular brand or product - 22.6m
• Compare prices - 20.8m
• Travel plans - 17.8

Other than email, you could argue that the four remaining activities all drive online spending. 21.3m people now shop online in the UK and spent an average of £661 each in the six months before August 08.

All very interesting information, but how does it relate to you?

Don’t forget that you can target your online ads to try and get a share of this market. For instance, research shows that women aged 25-34 spend more time online than men of the same group and even back in 2007, the over 50’s account for nearly 30% of time spent online.

You can turn consumer behaviour to your advantage. For example, why not try and find out if your target audience searches at a particular time of the day and gear your adverts towards them?

Did you know that Monday 8^th December is predicted to be the biggest online shopping day? Experts reckon that there will be sales worth £320 million.

There have been mixed reports about the growth of online shopping. In general, all the new figures show the stats are higher than the same period last year, but overall, it hasn’t increased the rate it did in 2007. No surprise there, given the economic climate, but what all the figures do show is that more people are turning online.

One of the many new reports on consumer behaviour has once again shown that using search engines has become the number one choice for finding local businesses, over and above using printed directories. What’s more, the findings suggest that a large majority of local searches then result in action - either a phone call, a shop visit or people contacting the business online.

The argument is there for all to see – make sure you have an online presence and see how it can help drive business your way.

If you ever need convincing of the significance of local search, you only have to turn to look at the actual breakdown of Google search results these days to see exactly why it’s becoming so important.

Do a search on Google for a business or service and you would expect to find websites that link to these search terms.

In actual fact, the websites often appear towards the bottom of the first page and instead, your eye line is drawn towards maps showing the locations of local businesses, sponsored links and advertisement, and business listings from the local area.

So if you’re a business looking to target these potential customers, what this means is that SEO will only get you so far in drawing people to your website. When internet users today are demanding immediate and relevant results, they won’t spend long looking for the information, so appearing on Google maps or being one of the sponsored ads presents a priceless opportunity.

Ah, but is this expensive, I hear you cry? As we’re always telling SMEs with tight budgets, online advertising has one key advantage over others; you can find out exactly what gives you the best return on investment and measure its effectiveness, so even in these tough economic times, you’ll be amazed at how online marketing can help generate cost effective leads for you.

Being able to directly target your key audience in an online advertising campaign presents an incredible opportunity for SMEs.

And without the backing of big marketing budgets, any online advertising campaign should take advantage of this to exploit your strengths and weaknesses.

Unfortunately, running your own campaign on Google or Yahoo! can be quite time consuming and complicated to monitor. To maximise effectiveness and get the best return on your advertising spend, you need to have the ad-creatives that attract the consumer to click on the ad and then to phone or visit your business, and you need to ensure that your campaign covers all the various goods and services that you offer where you make most of the profit.

Most SMEs are great at running their own businesses but do not have the time or necessary skills to set up and run their campaigns but there are some great resellers of these campaigns who can help you through this potential minefield for a fairly low fee.

Consider:

• Time: Set your ads to run at specific times to suit you

If you run a typical 9am – 5pm type business, you may find you are wasting money by running ads that appear after work hours and missing any calls that come through.

Similarly, think about when your target market will be searching; for example, if you’re a recruitment agency, you would expect people to be searching outside of work hours

• Locality: Through IP settings, set up your ad campaigns to target people searching in a certain area

With 9 out of 10 people searching for businesses or service in a certain area, make sure your ads reach the people who are looking for you at that exact same time they are searching. You can read all about local search here.

To make sure you get the best attention try and find the Authorised Resellers of both Google and Yahoo! as the search engines themselves have picked them specifically for their honesty, integrity, and transparency of charges as well as their skills.

For any SMEs that are unsure of where to start when it comes to online marketing, it’s always worth going back to basics: which strategy gives you the best return on investment?

With traditional marketing – such as advertising in the Yellow Pages or in a magazine - it’s always been difficult to judge which particular advert has been effective or whether it’s actually generated any tangible leads.

But that’s the beauty of online marketing and web analytics; you can evaluate exactly what works, and more importantly, what doesn’t.

It’s certainly nothing new, but free packages like Google Analytics are incredible simple to use and are helping more and more SMEs with tight budgets spend their money wisely. They can show you exactly what a customer does once they get on to your site, where your visitors came from and which pages are attracting the most attention.

As Google AdWords provide a good way to advertise specific goods and services you offer to people searching, you can also quickly evaluate and optimise your online Adword spend to work out which keywords are drawing in the crowds and what makes the most money for you.

So take some time out to make sure you are getting value for money – it’s easy to forget that you can always counteract a lack of budget through spending wisely.

No doubt many of you will have read in recent weeks about Google’s 10^th birthday and the profound impact that it has had on our lives. Like our previous post about the history and future of local search, it’s hard to take time out to consider where we were a decade a go – and even more so, where we may be in another 10 years time.

Google has certainly shaped the way we search for information in the last decade; it has dominated the market, Google Adwords advertising has transformed how businesses can target their consumers and now Google Maps will be a huge source of information for users and business owners alike.

Can anyone envisage anything that will have such a big an influence on shaping our search patterns in the next 10 years? Various predictions have been circulating:

• - will social networking sites increasingly shape how people search for information about people and organisations?
• - can rival search engines, such as Yahoo! or even the new kid on the block, Cuil, challenge Google?
• - will comparison sites be used more and more to help us drill down on how products and services compare across the board, not only in terms of price but also consumers’ reviews?
• - finally, one of our predictions: will local search dominate our thinking? (particularly that of mobile local search, which you can read all about here.)

For SMEs, it’s a fast paced environment to keep up-to-date with and will be even more so in the coming years as technology improves. It’s important to think ahead about how your consumers may be searching for you in the future, so take that time out now to consider how best to market your business.

The results are through for the past 6 months searches, which have led people to the Cityvistor site from the Google search engine. We’ve focused on 15 UK major towns and cities to see what the most popular searches have been.

We’ve found that hotels have topped the charts, with over twice as many searches as any other category. Rather surprisingly February proved to be the most popular time to look for hotels, with 10 of the 14 towns and cities being swamped in this month. Perhaps we can speculate whether our nation has been sweeping their Valentines off their feet despite the doom and gloom of the credit crunch?

The rest of the top ten searches can be found below: