Short End of the Ad Stick

My take on Eric Picard’s article on local advertising over on ClickZ:

1. Display advertising (i.e., print ads) in the local newspaper is still the best ad/marketing vehicle for a small business to reach its audience.

Article quote:

I’m fairly certain the numbers used by J.P. Morgan’s analysts include classified ad revenue. Classifieds have been decimated in local ad spend, but display ads in local newspapers are probably just as strong as they have ever been, despite shrinking circulation. This is mainly because there are no alternatives for local businesses, including local affiliates of national brands (e.g., local auto dealers, quick-service restaurant franchises, national retailer locations, etc.), to reach their local audiences. Much of this has to do with creative production and the lack of online inventory that can be targeted locally.

2. Online audience targeting is still not good enough for small businesses to shift their ad dollars online.

Article quote:

Local newspaper ad spend on display ads is very unlikely to move online for the next few years. The reason is similar to why television didn’t drop for some time despite shrinking audiences. There just isn’t an alternative to reach the target audience that a small local business, even a local affiliate of a national brand, can take advantage of.

3. Still no infrastructure for small businesses to get “true” local service positioning.

Article quote:

Local search has mainly solidified around mapping, which is great at taking advantage of people searching for a product in a local area but not for driving awareness of a sale or trying to create demand. And without a sales force and creative production resources to serve the local markets, it’s highly unlikely that much of the local inventory available within the online space will ever get sold to local businesses. The infrastructure is really set up for supporting national advertisers with localized creative.


Greg Sterling also comments.

2 thoughts on “Short End of the Ad Stick

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