Infoserve Group

Online searches for “credit crunch” related terms have rocketed in the past six months - we’ve recorded a rise of nearly 300% in the number of online searches for debt recovery services alone since August 2008.

It comes as no surprise following the recent report from the Insolvency Service, which announced there were 2,428 corporate insolvencies in the last quarter of 2008, a rise of 220% since the same period last year.

We’ve also noted a 15% rise in job searches and a 56% rise in the number of people looking for recruitment agencies, just as UK unemployment figures released this week suggest the number of people out of work is set to exceed 2 million this year.

It just goes to show that the key terms that people are searching for offers a valuable insight into the impact of the current downturn - we are finding more and more people hunting for jobs and looking for financial help online.

What’s more, the dramatic rise also shows how it has become second nature for us to turn to search engines and business directories to find what we need. Those financial advisors or debt recovery agencies that are currently prioritizing online marketing will no doubt be seeing a massive return on investment. Search engine advertising really is worth considering if you have something which you know people will be searching for in the coming months, whether that’s special offers, bargain deals or help and advice.

It’s a big question that is floating around; after an amazing growth spurt, how will the economic slowdown affect online advertising?

Whilst there are still predictions of growth for 2009, online advertising is still seen as a relatively new phenomenon and hasn’t yet been “tested” by a recession.

Yet we can only go by our own experience and it’s clear to us that more and more businesses are switching to online search marketing. Rather than merely “surviving”, we believe online advertising is going from strength to strength.

Why? It offers precisely what stretched budgets need at the moment - crystal clear results that can be measured - and we have no doubt it will continue to grow. We’re even bucking the current trend of job losses by embarking on a major recruitment drive for our sales team based in Darlington to help keep up with demand.

What the recession does present for businesses still in the game, however, is an opportunity to take advantage of the shift online, as consumers begin the search for bargains, promotions and special offers. They may be online right now searching for you - why not meet them half way, or better still, be the first one they see when they flick through their results?

Whilst the stats in this article about mobile local search are centred on America, it still sums up our own thinking about how the UK market will develop.

“Given the continuing growth in the smartphone market, mobile phones are poised to become the first source people turn to when searching for local business information.”

The article reports that;

“two-thirds (64%) of Americans say they generally turn to online resources for local search, while 33% turn to print, and 3% go to their phones. However, mobile phone users outnumber computer users by 39 million [and] the market for mobile search is growing faster than expected.”

The increasing popularity of mobile internet is backed up by the latest stats in the UK too.

“From Q2 to Q3 2008, the number of Britons using mobile Internet increased by 25% (from 5.8 to 7.3 million) compared to 3% for PC-based Internet (34.3 to 35.3 million Britons)” [Nielsen Online]

The Nielsen Online article also goes on to outline which websites perform well on mobile internet, as well as giving the usual demographic breakdown. We still think user experience will shape the popularity of mobile internet - at the moment, it’s often frustrating compared to PC-based searching - but with improvements emerging on an almost daily basis, surely it will only be a matter of time?

The usual round-ups of 2008 are circulating in the online marketing world, as are anticipated trends for 2009, but the Kelsey Group predictions usually hit the nail on the head.

Here are a couple of points worth highlighting from their latest release about what to watch out for in local media this year:

The Online-Only Yellow Pages Publisher?

…look for organizations that are clearly disinvesting in print by shifting all or most marketing and product development funding and energy to the online product.

Is this finally the push that small businesses need to recognise that print directories are a thing of the past? (You can read more about the growth of online directories here)

SMB Video Ads

…within a few years half of SMBs that have Websites will have a video advertisement. That’s approximately 3 million small-business ads in the next few years in the United States alone.

Are video ads something you have ever considered? An interesting trend to keep your eye on for 2009 - what would you look to feature on yours if you were to commission one?

Jumping on the Social Bandwagon

Many sites will implement other social features on their own, such as ratings and reviews, photos, videos and bulletin boards.

Another increasingly popular pastime, reflecting the trend towards creating a more dynamic experience for the consumer. Even for the smallest of businesses, reviews can make-or-break sales so why not take a little time out now to see if anything is being said about you?

Use of Traditional Media

The role of traditional media has been beaten down by the arrival of new media channels and search… Look for cross-media bundles bringing together newspapers, TV, radio and online services.

We’ve already commented in the past about how online marketing is going from strength to strength compared to traditional methods (for example, see how online advertising has topped mainstream TV), but our top tip for 2009 is take action now to capitalise on the move away from traditional media. As more and more businesses shift their focus to online and the industry gathers momentum, its crucial no-one gets left behind this year.

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.