Small Businesses Intimidated by Search Marketing
Small businesses are investing heavily in their websites to build online presence, but 59% with websites don’t currently use paid search marketing, and of those, 90% have never attempted it, according to a survey by Microsoft Advertising.
Moreover, 73% of small business owners say they are so intimidated by search marketing that they would rather do their taxes than create a search marketing plan, the research found.
The survey, which examined the search marketing behaviors of 400 small-business owners in the US, also revealed that despite the lack of investment in paid search marketing, the weakening economy and increased competition, 86% of small-business owners surveyed felt that they could be missing opportunities to grow their business, while three in four believed prospective customers might be searching online for the type of service their business offers.
Among the participants’ chief concerns, most cited the common misconceptions of cost, time and complexity as major hurdles to conducting search marketing campaigns for their businesses. Other key insights included the following:
- Nearly nine in 10 (89 percent) feared keywords might become too expensive.
- 81% percent question whether paid search marketing is the best use of their marketing budgets.
- One quarter of respondents believe paid search marketing is too complex.
- 21% percent think it would be too time-consuming.
- 35% feel they would need an agency to help set up a search marketing campaign.
“These opinions run counter to widely held marketing industry views on paid search marketing, which recognize the practice as one of the most cost-effective, easy-to-use, measurable and accountable forms of marketing,” said Brian Boland, director of adCenter at Microsoft Advertising. “Given today’s current economic conditions, small-business owners need more effective ways to optimize their marketing dollars. By investing in paid search marketing, small businesses can track online sales and determine the return on investment for their campaigns, while at the same time boosting traffic and visibility for their websites.”
On the other hand, the small-business owners who use paid search marketing are very satisfied, with 72% reporting an increase in sales inquiries and 68% saying they consider their paid search marketing efforts successful, Microsoft said.
About the survey: The research was conducted by Kelton Research in April 2008. Microsoft commissioned the quantitative research of 400 small-business owners with 250 or fewer employees via an anonymous online survey consisting of a series of 38 questions designed to gauge their search marketing behaviors and attitudes.
It’s not clear from the article that small businesses are intimidated by search marketing–although that may also be true. The article says that many small businesses don’t find it cost-effective to do pay per click advertising. Perhaps, like this commenter they have found organic search far more cost-effective. This data indicates that Mr.Boland’s comments about “views held by the marketing industry” may run counter to views of small businesses…
My experience with local businesses and Internet marketing is that they do not have a clue. They know the future of local marketing is online, but most do not have even the most fundamental understanding of how the Internet works in connecting with customers. It is inevideable that the Internet will become the single most influential resource for local business marketing. It will just take dragging local businesses kicking and screaming to the table. However, once they are on board they see what an incredible solution the Internet is for connecting with local customers.
The article clearly states that small businesses ARE intimidated by Search Marketing.
I always find it interesting when people mention organic search as a better option. The reality is that the vast majority of small businesses have no clue on how to measure their ROI - especially from organic search. The one thing that Search Marketing or PPC does bring to the table is built in tracking - so you know your ROI. A combination of organic and paid Search Marketing has produced superior results on every occasion that we have tested it. This definitely an AND and not an OR situation.
When we speak in acronyms he small business owner rolls his/her eyes. The problem does not rest with the SMB alone. We need to learn to speak their language, not convince them to assimilate to ours. It’s a simple matter of educating ourselves and dealing with SMBs in their sphere. It’s the reason Google, Yahoo! et al are not getting good traction with SMBs…. they can’t bring themselves to do so.