Market Wise Inc.

Pay-Per-Click Advertising Goes Local

Pay-per-click (PPC) programs are systems through which advertisers select keywords and then create listings that will show up when someone searches for that particular phrase. The major PPC systems (Overture and Google) place their keyword listings and ads across thousands of affiliated Web sites and search engines. When a searcher clicks on the advertiser's listing, the system takes the searcher to the advertiser's Web site. Advertisers select an amount they are willing to pay for each click on their listing. Advertisers bid anywhere from $.10 to $25 per click (with a current average of $.29)

The PPC systems started by appealing to advertisers with a national or international market—but, lately these systems are starting to focus on more local needs.

Two major trends are driving up interest in locally oriented PPC advertising.

First, Web searchers want local results. Kelsey Group and BizRate.com surveyed 5,582 online buyers and found 25 percent were seeking sellers near their home or work. This percentage is double what most analysts had projected. And, the need for local information is growing. Forty-four percent of survey respondents are performing more local commercial searches than one year ago.
Secondly, as many sellers are seeking local customers. An architectural firm or an accounting company may seek companies within a tight geographic area.

As a result of these trends, the PPC systems are working hard to deliver local search results. FindWhat.com has recently teamed with Verizon SuperPages.com to introduce PPC pricing to the Internet yellow pages site. Currently, Google is running a beta test which enables advertisers to target their ads by region, and Overture is also working on local search by enabling searchers to target results by radius. You can expect more effort by these main PPC players as they scramble to meet the demand for local Internet ads.

While some companies elect to run their own PPC program, several firms are starting to outsource this activity. If you are interested in exploring the benefits of a PPC program, please contact Market Wise. We have more than 3 years of experience in establishing and running highly successful PPC programs for our clients.