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Small Businesses Go Online to Reach Locals

While the Yellow Pages still serve as the most commonly used advertising outlet by small and mid-sized businesses, smaller companies are increasingly following bigger companies’ move to the web to connect potential local customers with bricks-and-mortar businesses, writes the Los Angeles Times.

With total online advertising generating some $12.5 billion in revenue last year, online ad spending on locally focused ads increased 78 percent to $4.8 billion in 2005, and is expected to grow to $5.8 billion in 2006. An estimated 20 percent of growth in 2005 is attributed to local advertisers’ experimentation with search engine marketing.

Consumers are also turning to the internet, as 39 percent of those surveyed in February by the Kelsey Group said they utilized search engines for local shopping. However, 36 percent said they used print Yellow Pages for local shopping, a drop from the 51 percent in 2003.