• by Shankar Gupta , November 9, 2005

Owners of local, small businesses have not so far kept pace with searchers' increased use of the Internet to locate local businesses, panelists at Ad:Tech said on Tuesday. What's more, panelists said, advertising and search engine marketing firms aren't doing much to help them understand the necessity of search advertising.

"Two-thirds of small businesses are confused about online marketing," said panelist Greg Sterling, an analyst with the Kelsey Group. "Nobody is advising small and medium businesses how to get in front of the online consumer. Consumer adoption of the Internet... has been far greater than corresponding use of online marketing by small business."

Panelist Dana Todd, president of SEMPO, added that one of the major problems with small businesses adopting local search is the dearth of inexpensive, reliable analytics tools. The current offerings, she said, are inadequate in terms of installation, and "don't always give you accurate data."

Despite their relatively slow adoption of search, Sterling predicted that small businesses will soon ramp up their efforts. "There's a growing consciousness that they have to get in front of these consumers," he said. "Within 18 months there will be an inflection point where market demand and products come together to drive more and more awareness and demand on a larger scale."