Published July 2004

Business owners turn to Internet advertising

Dear BizBest: The good old Yellow Pages have always worked for us. But I’m feeling more tech savvy these days, and lately, our Web site has become more important to building sales. I’d like to experiment with some type of online advertising to get our feet wet in that area. What do you suggest? — Yellow No More

Dear Yellow No More: Those sounds you hear out there are the collective footsteps of thousands, nay, millions of small-business owners turning to online ads to help drive business. And the method they are turning to most is centered on paid ads that accompany search-engine results.

The trend is clear. For one thing, consumers are not letting fraud concerns stop them from shopping online, says a new A.C. Nielsen survey. Results from the survey, commissioned by eBay, indicate that consumers plan to buy more online this year and that most believe the Web is a safer place to shop than it was a year ago.

At the same time, the spread of broadband connections and other tech improvements are giving the Web advertising market a boost, with paid search-engine advertising (also known as key-word advertising) via Google and Yahoo’s Overture service stealing the spotlight.

Even Yellow Pages publishers themselves are making it easier for small-business owners to market online. Verizon SuperPages.com, for example, is launching a new self-service application that lets small businesses start an online ad program without a sales person. Local merchants gain more flexibility to quickly manage their ads. Florists can quickly change from prom to wedding season, or an air-conditioning service can exploit an early heat wave.

Among small businesses with Web sites, online marketing is increasingly critical to success, says a new survey of online activities by leading Web host Interland. Nearly two out of three business owners are looking to search engines, key-word advertising and e-mail marketing to help build sales. The Interland Business Barometer survey found that only 12 percent of respondents consider Yellow Pages ads critical to driving business in 2004.

Targeted ads attached to key-word search results are the clear winner. Their simplicity, low cost and popularity among small businesses have pushed flashy banners aside as the main method for connecting buyers and merchants online. Business owners also like the concept because you pay only when someone clicks your ad and visits your site. It works like this:

You set up an account with one of the key search firms. Google and Overture (part of Yahoo) are leaders. Create your online listing with a short headline and a sentence or two. You’ll have to comply with strict guidelines on wording of the ad, however, as both services prohibit use of superlatives like “best” or “greatest.” Ads must be approved before they run.

You’ll create a list of key words or phrases that you want your ad to appear with, and decide how much you are willing to pay for each click-through. In some cases, you can pay as little as 10 to 15 cents and still get good placement. In crowded categories, the costs can go much higher. You can set a monthly budget, track your results and create separate accounts for different products or services.

Here are your best bets:

• Overture, which was purchased by Yahoo in 2003. Click on “Advertiser Solutions” at the main page for instructions on how to set up an account. The Pay-for-Performance search solution lets you list your business in sponsored search results across the Web, set your own price and pay only when someone clicks through. Visit www.overture.com.
• Google AdWords is a great way to reach people who are actively seeking information about your particular type of product or service. Cost-per-click pricing makes it easy to control costs. Go to www.google.com/ads.
• For details on the Verizon SuperPages program, visit www.superpages.com.

BizBest publishes “The 100 Best Resources for Small Business” and other resource directories. Visit www.bizbest100.com. E-mail questions to dan@bizbest.com.

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