Only 1.9% of local businesses advertise in pay-per-click search engines

Kelsey Group researched local businesses ad buying habits. Only 3.8% of local business survey respondents reported buying paid inclusion in online business directories, 2.1% reported vertical online directory inclusion buys, 1.9% utilized pay-per-click, and 1.7% used search engine optimization. By comparison, 31.7% purchased listings in the print Yellow Pages, 14% purchased inventory in print newspapers, 10.9% said they maintain a Web site, and 9.4% utilized direct mail. JupiterResearch predicts that local search spending will remain below $1 bln through 2009, while paid search is expected to hit $5.5 bln by then.