WebVisible analysts note that the typical small business used 55 keywords in their search campaigns in Q3 2009. This compares to the 43 keywords the typical small business used in Q3 2008. Analysts expect the number of keywords and general complexity in small business search campaigns to grow though they have a way to go to reach the thousands of keywords employed by large advertisers.

The WebVisible survey also revealed significant differences between small business types when it comes to search marketing and the number of key words used. Here’s a list of businesses, their amount as a percentage of total advertisers using search, and the average number of keywords used:

Attorneys/Legal Services 7.68% (105 keywords)
Dentists 4.97% (74 keywords)
Air Conditioning Services 2.63% (55 words)
Physicians & Surgeons 2.03% (57 words)
Insurance 1.97% (69 keywords)
And what are businesses getting in exchange for this activity? Once a small business spends over $100 in a quarter on a search marketing campaign with good keywords, the click through rate (CTR) is 1% or higher. CTR leads to conversion action on the marketer’s Web site of 32%. Conversion actions range from submitting an e-mail to bookmarking the page to viewing a video. With results like this, it’s easy to see why so many small businesses expect to increase their spending on search marketing in 2010.

[Source: State of Small Business Online Advertising Q3, WebVisible, Fall 2009]

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]