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BizReport : Search Marketing : June 09, 2009

Report: Churn may be spoiling local search

Local search may not hold the golden egg that marketers are in search of in these hard economic times. According to a new report from Borrell Associates, although local search is helping marketers in the short-term, in the long-term it is not.

by Kristina Knight

Researchers have found that churn is killing search for many local marketers because roughly half of the consumers who engage and convert because of an ad will no longer be a customer within 12 months. These customers are canceling subscriptions or otherwise disengaging with the marketers in question.

Along with news that heavy searchers aren't search engine loyal, many marketers are likely scratching their heads. Is search worth it?

Although it should not be looked at as a cure-all, search should not be written off at this point. Because consumers are increasingly turning to search engines to find brands, merchandise sites, product information and even local stores, paid search campaigns are still a must for marketers. In 2008, search brought in more than $11 billion in revenue for marketers.

In fact, a recent eMarketer report indicates that search will continue to see high growth over the next four years. In 2008, marketers spent just over $12 million on search marketing efforts. By 2013, marketers are expected to spend more than $23 million.

Tags: Borrell Associates, churn, eMarketer, local search, paid search, search marketing

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