Internet Statistics and the SMB: Believe At Your Own Risk

by Frank Reed on February 17, 2009

Yesterday I threw a few stats at you regarding small business and search. I am in Internet marketing so I obviously have a bias toward anything that is using the Internet to promote a business. In the past I have railed against the Yellow Pages and its continued slide into insignificance. I was surprised by some of the numbers of I saw yesterday that show that a pretty good chunk of people still turn to the Yellow Pages. I guess I am just not one of them.

Today I get an e-mail notice from my Locals Only sub over at Search Engine Land. The post is about hyperlocal search and is centered on a Forrester Group report that states the following:

The report discovered that 74 percent of offline consumers and 66 percent of online consumers still turn to the Yellow Pages directory for local business listings. Meanwhile, the report found Internet Yellow Pages (IYP) results were almost identical to Internet search engines with 31 percent of online consumers using IYP to find listings for local businesses versus 34 percent using search engines.

Huh? The Center for Media Research showed 57% use traditional Yellow Page directories while 47% use Internet Yellow Pages. The real difference is that they claim 82% use search engines. I realize that statistics are what they are but this disparity is pretty severe. I would like to know who paid Forrester for this ‘research’. I may have gotten my answer as to why the SEL report was what is was when I looked at the author of the post. Here’s his bio:

Larry Small brings nearly three decades of Yellow Pages and local search experience, Larry Small, Director of Research for the Yellow Pages Association spearheads and advises on all association-driven research activities for the industry.

Well, now I get it. The SEL ‘article’ is written by a shill for the Yellow Pages industry. No bias there. SMB’s beware when you see the latest and greatest statistics. They are only as valid as their source. You need to use your street smarts to discern whether you are being sold information or Kool Aid.

FT Takeaway: SMB’s look to statistics to make quick decisions in their fast paced world. If you do not exercise EXTREME caution by considering the source of the data you may just fall into the marketing net of someone who has their best interest at heart, not yours.

[qwidget question="169"]


{ 8 comments… read them below or add one }

1 Extreme Seo Internet Solutions February 19, 2009 at 8:12 am

Very Nice post, Thank you for sharing, just bookmarked This page.

2 Larry Small February 19, 2009 at 2:11 pm

As a researcher, I completely agree that it’s important to understand research methodology. The Yellow Pages industry did not commission the Forrester study. It is an independent look at the hyperlocal topic, and because of that, made a great basis for my Search Engine Land column. It’s interesting though that the Forrester findings are consistent with many other studies that show strong usage for Yellow Pages online products. Anyone interested in Internet marketing should definitely check out our services that make online advertising much easier for small businesses. It’s also worth taking a few minutes to go to the Forrester Web site to read more about this study (and many other interesting studies they provide).

Larry Smalls last blog post..62% of Small Businesses Don’t Have Marketing Help

3 Frank Reed February 19, 2009 at 2:20 pm

Larry,

Thanks for stopping by. That is good information to know. Is there an expanded synopsis of the study at Forrester because when I went there I just saw it for sale for a pretty good sum (admittedly I didn’t look too hard after seeing the cost).

As stated, I too was a bit surprised by the Yellow Page usage. I can certainly see how the online versions will be more the norm. I just had a client tell me that this year he canceled over 100k in hard Yellow Page advertising but is staying online.

I still have a tough time with the small percentage number using search engines. Help me out on that one. Did I miss something because that number seems quite low (an opinion which not even close to being based on any research other than the Center for Media Research report I have referenced).

Thanks again for coming by and I hope to have more conversations.

Frank Reeds last blog post..Internet Marketing Makes Selling Easier for the SMB

4 Sarah Perry February 24, 2009 at 12:42 pm

Frank,
To say that this article posted about yellow page usage is useless because you assume it was performed by a company associated with the yellow page industry is completely ignorant. I am sorry to put it in those terms, but if you looked at it that way, than any research or articles you post would be considered useless..because you are a part of the industry you are posting about. Facts are facts and ALL STUDIES related to yellow page usage, well at least from the real yellow page publishers, are performed by a third party independent source. It seems the only people who publish negative articles are those in the internet business, that in my opinion is as biased as you can get.

5 Frank Reed February 24, 2009 at 4:28 pm

@ Sarah Perry Fair enough. I know that much of what I write is biased just because it comes from my perspective and no one else’s. Can you verify YOUR claim that ALL studies related to yellow page usage are in no way related to YP publishers? I find that hard to believe but I am willing to look at evidence for sure.

Fortunately it is a free Internet and we are all entitled to our opinions and I appreciate you expressing yours here.

Frank Reeds last blog post..Small Biz Has the Money to Do Internet Marketing

6 Brady B March 8, 2009 at 1:48 pm

I think the article is great. But, I still think you are missing some big important parts. 1st is geographiclly useage is differen’t. Quoting 2008 SRI knowledge Networks Study. DMA of Salt Lake City Utah sited 50% of the population impacted weekly using the phone book average 2.2 times in a week. That same study conducted in downtown New York DMA found significantly less useage at .6 times a week impacting the population of 35%. Average survey 10 years ago was about 80% of the population sited using the phone book 4.4 times per month. You would find that if you calculated the SRI study out the useage for Salt Lake Would be higher. Why? well in Utah the population has grown tremendously over the last 10 years. Here is fact took a local Utah advertiser buying the most expenisve ad in Insurance and tracked all call counts for the years from 2004-2007 and the call counts where stable as well as his position in the book he averages 312 calls per month. His investment is targeted at about $12.00 to make the phone ring with a active buyer. Done the same type of testing around internet and I hate to tell you but the cost to make the phone ring with an active buyer is much much higher, getting into the high 20-30 per call. That is fact!!!! Does not matter what info you want to site. Most of the people that have nothing to show for the yellow page programs #1 bought the wrong program with the wrong expectation and #2 don’t know how to sell anyway! Another thing I like is think about industry that deals with immediate need. Insurance is immediate need and so are alot of other headings that involve investment in the yellow pages. Some businesses don’t find value in the phone book, but that didn’t just happen this year it has always been that way. For instance you ever turn to your yellow pages to get the local grocery store coupons? Of coarse not and that has always been that way. Good Luck-

7 Cell Phone Number Finder August 28, 2009 at 8:56 am

that was a great post…

8 Free call of November 14, 2009 at 10:30 am

thank you, i like it
nice read :-)

Leave a Comment

CommentLuv Enabled

Previous post:

Next post: