Search-engine ads can put small firms on top

By John Eckberg
Cincinnati Enquirer

As more small and midsize businesses are waking up to the power of the Internet, traditional Yellow Pages firms are stepping into the ring to compete with the titans of the Web — search engines such as Yahoo! and Google.

Chris McCoy, right, with CMAC Root Solutions, discusses computers with Amy Savage. McCoy says search-engine ads have helped his firm. Gannett News Service

"People are not going to scroll through 200 companies," said McCoy, who operates a two-person computer and network-consulting company, CMAC Root Solutions, in Loveland, Ohio.

"Most people go through the first page for results, and that's it," he said.

McCoy pays $65 a month to CincinnatiBellYellowPages.com so that more people would find his company when they use the Cincinnati Bell Yellow Pages search engine.

That means that whenever somebody goes clicking for information about computers and computer services, his listing rises to the top of the heap of companies in Greater Cincinnati.

"We haven't received a ton of business, but we have gotten some business, and that in turn has translated into referrals," he said.

McCoy boosted his Web bet when he next began to pay for an ad placement through Google Ad Words, which guarantees a listing next to local searches on Google for technical expertise such as computer repairs, backup systems and IT management.

Google's local search engine, local.google.com, uses Yellow Pages data and its own index of Web pages to bring surfers services and products only from their designated areas.

The Google listing costs McCoy's company 50 cents for each click delivered to his Web site, up to a maximum of $90 a month. More clicks mean more customers.

PricewaterhouseCoopers New Media Group said that keyword-search advertising saw exceptional growth in 2003 — a 35 percent increase, compared with 15 percent the year before and 21 percent growth for display or banner ads on the Web.

Steve C. Penn, owner and president of Cincinnati Door & Opener, figures that many of the Internet coupons brought to his company in recent months come from surfers who find the firm thanks to his listing on CincinnatiBellYellowPages.com.

"There's no way to track it, but we could tell. We could see when it picked up," Penn said. "And it does get us more customers."

David Miller, vice president of sales and operations for Cincinnati Bell Yellow Pages, said the Web-based version of the Yellow Pages targets a traditional client base: small and midsize companies in the region that are beginning to realize the power of the Internet.

"We are in a position to drive traffic to our small-business clients," Miller said. "One of the advantages of our service is that people may be looking for resources, but they are usually not looking for a company in Seattle."

Chris Sherman, editor of Boulder, Colo.-based SearchDay, a daily newsletter for Searchenginewatch.com — both products from New York-based JupiterMedia.com — said opportunities have never been better for small companies that want a Web presence.

Before the Web, most companies built their brand through traditional media such as radio, newspapers and magazines. But those mediums can take deep pockets, and smaller companies usually do not have the resources to compete on an ad-for-ad basis.

Also, a Web presence on a Yellow Pages site brings companies qualified customers that are ready to spend.

"Big businesses, quite frankly, have not discovered search-engine marketing," Sherman said. "It's a very affordable option for small businesses.

"When people use a search engine, they are in hunt mode. They have a need," Sherman added.