Google: How local search advertisers can expand search terms

Local advertising is not a new concept. The Yellow Pages have been around since 1886. What is new today is the way people discover and consume this information, and how advertisers can reach consumers.

Today, consumers search for local information online. To better understand the mindset and behavior of consumers when conducting local searches, Google teamed up with Ipsos MediaCT and Purchased® to conduct two customer research surveys. Our survey targets users who conduct local searches on their smartphones at least a few times a week. As part of the study, respondents voluntarily completed an online survey or logged in their smartphone searches and in-store activities through their mobile devices. We found that local searches are happening all the time, and consumers prefer ads with location-based information such as store addresses, directions, phone numbers, and click-to-call buttons (if they are using smartphones).

Local searches happen everywhere

When we travel to a new city for business, or when we are running around the city, or even when we are looking for a restaurant to eat, we often find ourselves in a situation where we need to search for what is nearby. In the past, if we wanted to eat authentic Mexican food, we might refer to the reviews of critics in the most popular food magazines or local newspapers.

Now, we do it through search. We can simply search for "Mexican restaurants" and get results near us. Searches like this are very common. In fact, 4 in 5 customers use search engines to find products, services or experiences nearby. Their local searches happen all the time and anywhere; 84% of customers use search engines on their PC or tablet, and even more (88%) use them on their mobile phones.

Respondents said they search for local information on their PC/tablet in a variety of places, including at home (76%), at work (24%), and in a hotel or motel (18%); while mobile searches are performed at home (53%), on the go (51%), and in a store or mall (41%). When consumers are out and about, most use their smartphones to search. In fact, 56% of smartphone searches are conducted while out and about, while 51% are conducted in-store.

Consumers search for local information at all times and in all locations, primarily for store addresses, store directions and business hours.

Local search turns ideas into action

Our research shows that consumers who conduct local searches are further down the purchase funnel: 34% of consumers who conduct local searches on a PC/tablet will visit a store, and the percentage is even higher for those who use a smartphone, at 50%.

Once in the store, they continue their local search, using their smartphones throughout the discovery process — whether it’s getting more information about a product or comparing prices.

Next, they may be ready to buy. In fact, if you run into them in your store, there’s a good chance these customers are ready to buy; a significantly higher percentage of customers who make a purchase within a day of a local search than those who make a non-local search (18% vs. 7%). Local searchers are a prime audience for advertisers because those who conduct local searches are more likely to turn their thoughts into actions.

What does it mean for advertising?

Customers want a certain amount of contextual results related to their search. In fact, 4 in 5 respondents want search ads to be customized based on their city, postcode or surrounding area (for example, if they are near an airport).

Furthermore, more than 60% of respondents said they use local information in ads, particularly navigation links and click-to-call buttons (or local addresses and phone numbers if using a PC/tablet).

As consumers continue to change locations, all businesses will benefit, whether they are online companies trying to attract consumers in a certain city, physical stores trying to reach local consumers, or multi-channel organizations hoping to pull consumers from online to in-store. Once you implement a local strategy, advertisers should pay attention to the following points:

Optimize consumer targeting. Advertisers can start with broad targeting (e.g., targeting the entire United States) to get a large number of consumers, and then use targeted bid adjustments to fine-tune bids for specific regions.

Help consumers find what they need. Make it easy for people to search for the information they need most. Simply adding an address, phone number, or a call button to your ad can help consumers take action quickly.

Attract shoppers to your store’s vicinity. You should use radius bidding to reach shoppers near your store and build an attribution model for local searches.

Today, consumers are online all the time; whether at home, on the go, or in a store, they are using search engines to get local information. By optimizing relevant local targeting and providing information, advertisers can provide people with a better experience.