According to results from a recent National Survey by YP, described in a detailed whitepaper by Dr. Phil Hendrix, Director immr, local search is not only pervasive and growing, but also changing in ways that are important for consumers, businesses and the search industry. With smartphones and tablets in hand, consumers are using mobile devices to search at work and school, on the go, and even while watching TV.
Within the broader category of search, searching via the web for local businesses is:
Individuals use local search for many different reasons, including simple (“where is the nearest ATM?”) and complex (“are any nearby restaurants offering a special today?”). The survey measured a number of characteristics useful in “sizing” local search. Based on device(s) owned, three key segments can be distinguished:
The frequency of local search varies markedly across these three segments.
On average, the first segment, with “PC’s only,” averages about five local searches a week. With the addition of Smartphones, the volume of local search nearly triples, to 13.5 local searches per week. Consumers with all three devices do more than 21 local searches per week, or an average of three a day.
Average Number of Local Searches Per Week by Device | ||
Device(s) Owned | Avg. Searches Per Week | Total Searches Per Week |
PC only | 5 | 5 |
PC & Smartphone |
| 13.5 |
Smartphone | 6.5 |
|
PC | 7 |
|
PC, Smartphone, Tablet |
| 21+ |
Tablet | 8 |
|
Smartphone | 9.5 |
|
PC | 10.5 |
|
Source: immr/YP, October 2012 |
In the survey, respondents provided details on their local search activity across 11 product and service categories shown. The measure in the report is referred to as the incidence of local search within a category. For example, of the 41% who purchased “Transportation” in the last year, 80% of those had done a local search for transportation.
The incidence figures in the chart reveal the importance of local search:
Incidence of Local Search by Product Category (Among Purchasers in Category; % Searching in Previous 12 Months) | ||
Category | % Purchasers Searching | % Purchased |
Entertainment | 87% | 82% |
Restaurants & dining | 84 | 94 |
Transportation | 80 | 41 |
Contractors | 79 | 36 |
Retail store | 77 | 90 |
Automotive | 72 | 76 |
Professional services | 70 | 31 |
Personal & fitness | 70 | 65 |
Financial services | 70 | 63 |
Healthcare | 67 | 75 |
Groceries | 61 | 96 |
Source: immr/YP, October 2012 |
The term “local” is often used without a precise definition. In each of the eight categories the results show that a majority of consumers shop with businesses within 15 minutes of their home or work, and nearly all within 20 minutes. Naturally, in product and service categories purchased more frequently
Groceries, Hair Salons, Restaurants, etc., consumers tend to shop at businesses closer to their home or office. Conversely, boundaries are wider for product and service categories purchased less often.
Results confirm that a large percentage of consumers use local search on a regular basis. Within the population there is a subset of that uses local search even more extensively, relying on local search daily (on average), and across a range of product and service categories (at least six out of the eleven examined).
This segment, “Avid Local Search Users,” is important for a number of reasons, says the report. Although just 24% of the sample, Avid Users account for over half of all local search volume. As “heavy users” this group is clearly vital to the success of local search providers, advertisers and merchants.
Equally important, this segment provides a glimpse into the future of local search, concludes the author. While Avid Users are more likely to own both smartphones and tablets (1.2 – 2x), they are much more likely (4-6x) to use those devices for local search. As more consumers adopt and use smartphones and tablets, the average user is likely to gravitate toward the usage patterns of Avid Users.
Local Search User Segments (% of Segment Respondents) | ||
| User Segment | |
Psychographic | Average Local Search User | Avid Local Search User |
Percent of sample | 76% | 24% |
Local search ≥ daily | 52 | 100 |
Categories searched | 5 of 11 | 8 of 11 |
Male | 49% | 52% |
Age 21-35 | 32 | 51 |
Employed full time | 49 | 72 |
College grads | 47 | 57 |
HH income $75K | 35 | 47 |
Search on PC ≥ daily | 27 | 92 |
Own Smartphone | 72 | 97 |
Search on Smartphone ≥ daily | 19 | 86 |
Own tablet | 30 | 65 |
Search on tablet ≥ daily | 15 | 85 |
Source: immr/YP, October 2012 |
Local search is one of a number of interconnected behaviors that span mobile, social and local, says the report. On all of the dimensions above, Avid Users score significantly higher than average users, by as much as two to four times. In the profile of Avid Local Searchers, all of the data reflect behaviors in “the last 30 days.” Shown in parentheses (e.g., 2x) are indexes comparing Avid Users to Average Users.
Avid Local Search users have embraced M-commerce:
Avid Local Search Users are also active participants in social media and commerce:
Avid Local Searchers engage with brands frequently and in a variety of ways:
Avid Local Searchers are also using digital promotions and technology at point-of-sale:
Not surprisingly, Avid Local Searchers also actively shop and interact with local businesses:
The report concludes by opining that for local search providers, agencies and consultants, local search represents an enormous market. Not only is the market large and growing, but also changing in ways that are important for businesses and the search industry. Innovation in local search is likely to continue unabated.
For additional information about the study, including a series of charts and graphs, please access the PDF file here.