ComScore’s Gillian Heltai Says Local Search Growth Trajectory Slowing Down

Gillian Heltai, comScore’s senior director, presented new search data showing that while local search is still growing, its trajectory is slowing down. She broke search into online and mobile.

Year over year, online search grew 9 percent online to 19.3 billion searches in Sepatember 2011. Of these searches, 2.8 billion are local. 10 percent of U.S. online display ads are locally targeted. IYP/local searches declined 20 percent while local Web searches increased 9 percent. Only 3 percent to 4 percent of searches are paid clicks; the rest are organic searches.

Heltai said there’s a perfect storm for local based services in mobile media of search, GPS-capable devices and smartphone penetration. Seventy-five percent of mobile subscribers have a GPS-capable device, an annual increase of 11 percent. More people are doing more mobile searches. Mobile search grew 26 percent with 39 percent doing at least one mobile search per month.

Overall, 88 million mobile subscribers accessed local content on mobile device in September 2011, up 28 percent. More than 88 million (up from 69 million) accessed local content. Forty percent of all mobile users access local content; 75 percent of smartphone users do.

As smartphone/GPS-cable devices increase their penetration,the growth of local mobile search will stimulate mobile advertising growth. One-third of mobile media users recalled seeing ad.

Heltai concluded by observing that while consumers clearly are moving into mobile search in a big way, small and medium businesses are becoming overwhelmed by their range of advertising choices. They need to understand not just that mobile search is where their consumers are; they also need to be shown how to engage with their consumers on this high-growth platform.

Rick Ducey

Rick Ducey is the managing director for BIA/Kelsey. He is an expert in digital media innovations, competitive strategies, new product development and new business models, including digital ecosystem collaboration strategies. Ducey oversees the firm's consulting, research and advisory services areas. He is also the program director for BIA/Kelsey's Video Local Media advisory service. This program provides coverage and analysis of how online, mobile and broadcast video technologies, competition, shifting consumer demographics and media usage trends are driving changes in the media ecosystem and SMBs and other advertisers can be successful in the new environment. Ducey assists clients with their business planning and revenue models, strategic research, market assessment, and designing and implementing digital strategies. He is also a cofounder of SpectraRep, one of BIA�s companies, which sells a patent-pending IP-based alerting system that he co-invented. Prior to joining BIA in 2000, Ducey was senior vice president of NAB's Research and Information Group. In this position, he was in charge of the association�s new technology assessment, audience and policy research, strategic planning and information systems, including all Internet operations, and he also developed publications and seminars. Before joining NAB in 1983, Ducey was a faculty member in the Department of Telecommunication at Michigan State University where he taught and did research in the areas of emerging telecommunication technologies and strategic market research. He also served on the graduate management faculties of George Mason University and George Washington University in telecommunications management and the University of Maryland, where he taught strategic market management and research methodologies. Ducey was selected as the Spring 2011 Shapiro Fellow at George Washington University where he teaches entrepreneurship in new media. He has published a number of research articles and papers in these areas and serves on editorial boards of leading scholarly journals in the communications field. He has also worked at radio stations WSOQ-AM/WEZG-FM and Upstate Cablevision in North Syracuse, New York. Ducey received his Ph.D. from Michigan State University, M.S. from Syracuse University and B.A. from the University of Massachusetts at Amherst.

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