More users increasingly employ local search, but many companies are not adequately budgeting for it and are opting to go with traditional, ineffective media.  As more industry players enter the local search landscape, search engines need to promote it more and companies need to become better educated about it.

Local search has sharply increased over the past few years, but many local companies still do not appreciate what a powerful and cost-effective tool it can be. The numbers show lots of online users employing local search, but few businesses making room for it in their online marketing budgets. Many companies are still spending valuable effort and money on traditional, ineffective media, with less than desirable means of measuring campaigns.

Some analysts believe that companies need to be better educated on the potential of local search, while others claim that search engines need to more effectively promote it. Many business enterprises still perceive local search to be complicated and expensive, and think that there is a lack of adequate local expertise to devising effective search plans. The truth is that several knowledgeable and talented players have already entered the local search industry, so let’s consider some important ones:

* Major search engines: Leading engines such as Goggle and Yahoo have separate entities in individual countries for dealing with local search efforts (i.e. Google.ca, Yahoo.ca)
* Local directories sponsored by traditional media, such as local newspapers: companies usually appear in a listing with fellow competitors, and as such pay a higher cost-per-click. These companies should consider the top paid listings of these directories, allowing users to find them more quickly.
* Other local directories, such as Citysearch and CityGuide: again, companies are advised to consider placements in the top paid listings.
* Local, regional or national professional directories for various services (i.e. accountants, dentists, doctors, lawyers, mortgage professionals, real estate agents): These directories gather leads, and then re-sell them to local service providers. Providers are receiving leads secondhand, however, and would increase their conversion rates by collecting their own prospects.
* Local Search start-ups (i.e. ReachLocal, LocalLaunch.com), which offer local advertisers comprehensive local search marketing services. Campaign management, ranking reports and free template web pages are all provided, but at relatively high costs; the general web pages do not differentiate between each company’s individualized needs.

Companies doing lots of online business need to better appreciate how local search marketing might be more cost-effective and relevant than traditional venues. Once they fully understand the utility of local search, then the real challenge starts – finding an experienced, talented SEO provider who understands how to properly do it.