Bing had captured about 10.5% of the search market at the end of Q3 2009. Much of the growth came at the expense of Google. And this shift in the search market may be because Bing has CPC (cost per click) rates that are 30% lower than Google in some areas. However, Google still had 60.4% of the small business search market. Mangers also notes that more small businesses are entering the search market, especially in the Local area, because they see that their efforts are paying off. “The real news is that these SMB advertisers are getting results from their interactive budgets that they’ve been after for years now. Local interactive is on the rise – because it works,” says Mangers.

WebVisible’s survey indicates that the typical small business spent $1,658 on search marketing in Q3 2009. At least 15% of firms spent at a higher quarterly rate that ranges from $2,000-$2,999. Analysts expect SMBs (small and medium size businesses) to continue to spend on local interactive search. Matt Booth, SVP and Program Director, Interactive Local Media for BIA/Kelsey states, “I should think that they (search engine companies) would be encouraged by these results, as more and more SMBs move their ad budgets away from print and directories and online, small market share increases will come to represent big dollars.”

[Source: WebVisible Q3 Report Reveals New Trends in Local Interactive Marketing, company release, Fall 2009]

More than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling. Likewise, a vast majority perceives businesses that continue to advertise as being competitive or committed to doing business.

The latest Ad-ology Research study, “Advertising’s Impact in a Soft Economy,” analyzes consumer perception about businesses that continue to advertise, and those that do not, in the current economy.

The study finds advertising appears to play a key role in consumers’ view of how a business is doing, and by not advertising, businesses may be sending a warning signal to current and potential customers.

“It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand,” said C. Lee Smith, president and CEO of Ad-ology Research. “Advertising not only assures consumers of a business’ reliability in a soft economy, but it can influence where and what they buy, especially when the ads address concerns about value,” Smith said.

Other key findings:

40% of consumers use coupons more now than a year ago
Most consumers are as willing or more willing to pay more for ‘healthy’ or ‘organic’ products than they were a year ago
A ‘deeply discounted price’ was the number-one factor that would make consumers more likely to purchase a big-ticket item (+$1,000)
TV, newspaper, direct mail, and Internet top local media from which consumers saw/heard an ad within the last 30 days that led them to take action
Store Web sites ranked second only to search engines as the way consumers research products and shop online
Advertising’s Impact in a Soft Economy is available for purchase through Ad-ology.net, and includes 63 data charts and additional marketing insights.