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150 Smart Stats: Online Marketing Trends Every Business Needs to Know150 Smart StatsOnline MarketingTrends Every BusinessNeeds to Knowreachlocal.com 866.822.7358 2012 ReachLocal, Inc. All Rights Reserved. ReachLocal is a registered trademark. All other marks are the property of their respective owners.1

150 Smart Stats: Online Marketing Trends Every Business Needs to KnowOnline marketing is a powerful toolfor building your brand, connectingto consumers, and getting leads.That’s because now more than ever,consumers rely on the Web to findinformation about your products andservices. This collection of statisticsexplores the latest in digital trends,giving you valuable insight into howconsumers’ behavior today can affectyour business and how to capitalizeon it.Stats gathered through July 2012.2

3150 Smart Stats: Online Marketing Trends Every Business Needs to KnowLOCALSEARCHTable of ContentsSOCIALVIDEOMOBILEADVERTISING

4150 Smart Stats: Online Marketing Trends Every Business Needs to KnowLocal Businesses Need an Online Presence85% of consumers are searching for local businesses online.1 But, there’s a big number of small businesses thatmight not show up online. Approximately 63% of small businesses do not have a website, and another 25% don’t show up in search results.2Plus, 60% are missing a phone number on their home page, and almost 75% don’t have an email address listed.363%85%{{Consumers Searching forLocal Businesses Online25%Small BusinessesWithout a WebsiteConsumers are searching for local businesses like yours online.Without an optimized Web presence, you will miss the opportunityto attract them.Small BusinessesThat Don’t Show Up inSearch ResultsLOCAL

5150 Smart Stats: Online Marketing Trends Every Business Needs to Know22% SocialNetworking20% ReadingContent5% Shopping21%Searching13% ViewingEntertainmentConsumers SpendA Lot of TimeOnlineToday, most Americans have access to andare using the Internet. In the U.S. alone, 82% of adultsuse the Internet,4 with the typical user spending an average of 38.819% Emailinghours per month online.5 That’s a little over an hour a day. Andthey spend a lot of that time on social networking, searching, andreading content.Percentage of time spent online6Your potential customers are spending more of their time online. Is yourbusiness marketing to people on the types of places they are spendingmost of their time?LOCAL

6150 Smart Stats: Online Marketing Trends Every Business Needs to KnowWhat Consumers Do OnlineInternet users report performing a wide variety of activities when they are online. In somecases, these online activities replace the tasks they used to do offline.92%Sent orRead Email92%Used SearchEngines71%65%PurchasedProductsUsed SocialNetworking81%Checked Weather65%Made TravelReservations76%Read News61%Used OnlineBanking71%WatchedVideos37%Rated Productsor ServicesTypes of activities consumers reported performing online7This is what your potential customers are doing online.Are you reaching them?LOCAL

7150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Use Search EnginesThere are over 17.5 billion explicit searches conducted each month in the U.S. among various searchengines.8 Of these, Google leads with the majority of primary searches. And in 2011, Bing surpassed Yahoo! to claim the number 2 spot.15.4% Bing13.4% Yahoo!3.0% Ask.com{66.7% Googlegoo gleverbgoo gled goo gling: to use the Google search engine to obtaininformation about someone or something onthe World Wide Web1.5% AOL“Google” as a verb added to English-language dictionaries10Core search engine market share9Consumers rely on Google, Yahoo!, and Bing to help them findinformation, making these search engines important tools in youronline marketing strategy.SEARCH

8150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Value SearchToday’s consumers rely on search engines, with 91% using search to find information on the Web and59% doing so on a daily basis.11 Plus, search engine users find search engine results to be reliable, educational, and unbiased.91%86%Found WhatThey WereLooking ForLearnedSomething Newor Important73%BelievedInformation wasAccurate andTrustworthy66%Said SearchEngines are Fairand Unbiased50%Found InfoThey Didn’tThink TheyCouldPercentage of search engine users reporting these experiences with search engine results12Consumers regularly rely on search engines to find information theyneed. Can they find information about your business via search?SEARCH

9150 Smart Stats: Online Marketing Trends Every Business Needs to KnowSearch Engine Rank MattersHow well you rank in search engine results significantly affects whether or not consumers find yourbusiness, products, and services. And, consumers tend to focus on the first page of results, making it incredibly important to show upthere for important keywords.Plumber in Atlanta, GAPage 1Paid SearchAdsOrganicListing93%Of consumers beginon a search engine.1375%Of searchers neverscroll past the firstpage of search results.1450%Paid search ads provide50% incremental clicks evenwhen a business ranks #1 fora keyword in organic search.15Both paid search advertising and organic search engine optimization areessential tools to help you show up in search engine results.SEARCH

10150 Smart Stats: Online Marketing Trends Every Business Needs to KnowSocial Media Use is on the RiseSince 2005, social networking has been the fastest-growing online activity. 66% of adultInternet users access social media.16 This has grown significantly from only 8% of online adults using social media in 2005. In fact,today Internet users spend 1 out of 6 online minutes using social media.17712%Growthin 7 owth in number of adults using social media18As the use of social media continues to grow, it’s becoming moreimportant for your business to be active in this space.SOCIAL

11150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Socialize OnlineSocial networking is one of the most popular activities online. For some consumers, posting updates totheir social media profiles has become part of their daily routines.35%18%17% 16% 10% 4%{{{Post at leastonce perweek.Post nearlyeveryday.Post atPost manyleast once timesper month. per day.Post lessNeverthan once post anper month. update.{{{Percentage of people posting social media updates19People are engaging on social media. So as a business, using socialmedia frequently and consistently gives you an opportunity to interactwith more consumers.SOCIAL

12150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers “Like” FacebookThere are 155 million Facebook users in the U.S.20 and over 955 million active monthlyusers in the world.21 Chances are, many people in your target marketing audience are using Facebook.24% Ages 18-24155 MillionFacebook Usersin the U.S.}23% Ages 25-349% Ages 13-1717% Ages 35-4414% Ages 55 13% Ages 45-54Percentage of U.S. Facebook user base by age22No matter who your target audience is, Facebook is a good place totarget your messages and connect with consumers.SOCIAL

13150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Socialize on Many nterestThere are over 107 millionTwitter accounts in the U.S.alone, accounting for 28% ofworldwide usage.23 There aremore than 175 million tweets aday worldwide.24 Consumersspend an average of 36 minutesper month on Twitter.25*LinkedIn has almost 63 millionmembers in the U.S.26 Usersspend an average of 17 minuteson LinkedIn per month.27*Instagram made headlines in2012 when Facebook purchasedit for 1 billion.28 Currently, thereare over 50 million Instagramusers worldwide29 uploading andsharing a total of more than5 million photos a day.30Pinterest is currently the fastestgrowing social networking sitein the U.S.31 Unique visits havereached 21.5 million, a 30xincrease in just 6 months.32 Theaverage time spent on Pinterest is1 hour and 17 minutes a month.33In addition to Facebook, there are a variety of social media platformswith large user bases that are important to consider for your onlinemarketing efforts.*Not including mobileSOCIAL

14150 Smart Stats: Online Marketing Trends Every Business Needs to KnowOnline Reputation AffectsConsumer DecisionsOnline reviews and recommendations are playing an important role in how consumersmake their purchasing decisions. In fact, 76% of consumers reported considering online reviews whendetermining which local business to use. 72% of consumers surveyed said they trust online reviews as much as they trust personalrecommendations. And 52% of consumers said they were more likely to use a local business that has a positive reputation.347 out of 10Consumers said they trust onlinereviews as much as personalrecommendations.5 out of 10Consumers said they weremore likely to use a localbusiness that has a positivereputation.Your offline reputation isn’t the only one that matters. Now, what peopleare saying about your business online and how you react and respond tothose mentions can affect a consumer’s decision to buy from you.SOCIAL

15150 Smart Stats: Online Marketing Trends Every Business Needs to KnowLocal Businesses are on Social Media83% of small businesses using social media believe it is important to their business.35 In fact,more than 9 million small businesses are now using Facebook.36 However, many small businesses havenot yet invested financially in social media marketing: 42% of small businesses allocate 0 to social media marketing and 17% spendless than 100.37Percentage of Small Business Owners Who Consider These Sites Valuable86%71%60%Percentage of SMBs who reported value by platform38Now that most small businesses value social media, consider hiringsomeone to help manage your presence on the social media platformsthat make the most sense for your business.SOCIAL

16150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Watch Videos OnlineGlobally, consumers watch over 200 billion videos online per month.39 Most of these videos arefrom YouTube. In 2011, there were 3 billion hours of video watched per month,40 over 4 billion video views per day, and about 60hours of video uploaded every minute.41 Plus, with more consumers looking for video content online, YouTube is now the secondlargest search engine, with 3 billion unique searches per month.42There are 7 Billion.People on the PlanetVideo ViewsEvery 1.5 daysHours WatchedEvery 2.3 DaysUnique SearchesEvery 70 DaysConsumers are spending more time online watching and looking for videos.Your business should be investing more time creating them.VIDEO

17150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Engage with BusinessVideos OnlineBecause online videos are becoming more mainstream, consumers are becoming morewilling to watch them to get the information they want.8.5 out of 10People may watch a video if itcontains product information.8.7 out of 10People reported they may watchdemonstrations of a product.Percentage of respondents likely to watch types of business videos43Because consumers now use videos as a way to get information aboutbusinesses, you can use this tool to build credibility and influencepurchasing decisions.VIDEO

18150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Have UsedTheir Phones To.74%50%Send TextMessagesDownloadApps36%33%Access Blogsor SocialNetworksPlayGames49%Use aBrowserConsumers areAlways ConnectedThe typical mobile user spends an average of2 hours a day using their mobile phone.44Communicating with others is one of the main reasons people usemobile devices, but they are also spending a substantial amount oftime on the mobile Web.25%Listen toMusicPercentage of mobile phone owners reporting using their phones for these activities45The rise of mobile gives you a chance to stay connected toconsumers wherever they go.MOBILE

19150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Love MobileApproximately 234 million Americans use mobile devices regularly.46 And for some, “use”actually means “can’t live without.” One survey in the U.K. found that 66% of respondents suffered from nomophobia, the fear ofbeing without a mobile phone.47 Almost 66% of smartphone subscribers even admit to sleeping with their phones close to them.48“I would rather give up%70Alcoholthan my phone for a week.”%63Chocolate%33Sex%22ToothbrushWhat respondents reported they would rather give up than their phone by percentage49nomophobia: is the fear of being out of mobile phone contactTerm coined during study by U.K. Post Office50Since consumers don’t want to be disconnected from their phones,you shouldn’t ignore the importance of mobile marketing as a wayto reach them.MOBILE

20150 Smart Stats: Online Marketing Trends Every Business Needs to KnowThe Rise of the SmartphoneThe growth of mobile Internet usage is made possible by the rise in smartphone ownership.In fact, almost half (49.7%) of U.S. mobile subscribers own a smartphone.51 That’s more than 106 million people.52 And by 2016, 192 million peoplein the U.S. are projected to own a smartphone. 53 Of all smartphone operating systems, Android has the most shares in the U.S. market.5423% AppleTo date, approximately59% Android7% Symbian6%Blackberry175 MillioniPhones have been soldaround the globe.555% OtherCurrent market share of smartphone operating systems in the U.S.54Smartphones are empowering consumers to communicate, searchfor businesses, and even purchase, no matter where they are.MOBILE

21150 Smart Stats: Online Marketing Trends Every Business Needs to KnowTablet Ownership is on the RiseNot only are consumers using smartphones to access the mobile Web, but they are nowusing tablets as well. Studies predict that by 2015, over half the population of Internet users will own a tablet.56Tablet Ownership in the 2014*2015*Recent and projected* growth of tablet ownership in the U.S.56Tablets are powerful devices that give consumers a robust mobileWeb experience. As more consumers use tablets, having a mobilemarketing strategy is essential to reach them.MOBILE

22150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers are MultitaskingConsumers aren’t always replacing one screen with another. Many people use multiplescreens at the same time.5785%Use a tablet or a phonewhile watching TV.66%Use a tablet or phone while ona computer and watching TV.Percentage of respondents using multiple devices simultaneously57Consumers are juggling many types of devices. So your marketingshould not only reach them on all of these platforms, but youshould also have one clear and consistent marketing message.MOBILE

23150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Search on MobileStudies show that by the year 2016, mobile searches will overtake PC searches for local search.59Within the past 2 years, the number of Google searches on mobile devices has grown by 500%, making Google the leader in mobilesearch.60 Likewise, Google also owns the majority of local mobile searches.61 By the end of 2011, 61% of smartphone owners had searchedfor a local business on their phone.62CarRepairItalianFoodSpa3 out of 5Consumers search forlocal businesses on theirsmartphone.Smartphone owners who use their phone to search for local businesses62Consumers are searching for local businesses via mobile. Havinga mobile website and claiming and optimizing your Google Localpage can help them find yours.MOBILE

24150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Rely on Mobile MapsNot only are consumers searching on Google’s mobile browser and app, but they arealso finding places directly in Google Maps on mobile devices.}200 MillionUsers per Monthon Mobile GoogleMaps. That’s 40% of All Usage.63Now, consumers can find any business when they are on the go.Make sure they can find you.MOBILE

25150 Smart Stats: Online Marketing Trends Every Business Needs to KnowPeople Socialize via MobileConsumers spend a growing amount of time on social media sites via mobile devices.In some instances, the average mobile user spends more of their social media time using a mobile device than they do using a utespermonth13MinutespermonthAverage minutes spent by a mobile user via mobile browser and mobile app combined64Because mobile access allows consumers to constantly stayconnected to social media sites, it’s important to frequently addnew, fresh content to your social media pages.MOBILE

26150 Smart Stats: Online Marketing Trends Every Business Needs to KnowConsumers Shop via MobileConsumers are now using mobile devices to make purchasing decisions. 47.5% of U.S. consumershave used mobile devices to search for products and services online,65 and this only increases with smartphone owners.66Smartphone Owners Use Phones to Aid in Shopping.}66%To MakePurchasingDecisions38%While ata Store44%While in the AisleWhere Product isSoldSmartphone owners reporting using a mobile device for respective shopping activities67Consumers can now decide what to buy when at the store or evenwhile standing in front of the product, making a mobile presenceeven more critical than ever.MOBILE

27150 Smart Stats: Online Marketing Trends Every Business Needs to Know2012The Shift to OnlineMarketingLocal businesses are now spending more oftheir advertising budgets on online, interactive,and digital advertising, with a predictedgrowth from 21.2 billion in 2011 to 35 billionby 2015.68 This predicted growth is significantly higher thanwhat is projected for traditional ad onal AdGrowthOnline AdGrowthPredicted percent change year over year in online vs. traditional ad spend68Because consumers are searching locally, online advertising isan essential tool for even the smallest businesses to reach morelocal consumers.ADVERTISING

28150 Smart Stats: Online Marketing Trends Every Business Needs to Know 39Billion 36 33BillionOnline AdvertisingOnline AdvertisingIn 2012, the spend on online advertisingis predicted to surpass the spend on printadvertising.69BillionPrint AdvertisingInvestment inOnline Advertisingis Growing 32Print AdvertisingBillion}}20112012Past and expected annual U.S. spend on traditional print and online advertising69More advertisers are adapting their marketing budgets toinclude online advertising. This shows how essential onlineadvertising has become to reach consumers.ADVERTISING

29150 Smart Stats: Online Marketing Trends Every Business Needs to KnowAll Online Advertising is GrowingSearchMobileDisplayMobilePlumber in Tampa, FL28%Growth 19.5 BillionProjected SpendIn 2012, search advertisingspending is expected to riseby 28% to 19.5 billion inthe U.S.7024%Growth 15 BillionProjected SpendIn 2012, the spend on displayadvertising is estimated to growby 24.1% to 15.4 billion in theU.S. alone.71Ad128%Growth 4.2 BillionProjected SpendMobile ad spending in theU.S. is set to reach 4.2 billionby the end of 2012, a 128%growth from early 2012.72As online advertising continues to grow, it’s more important thanever to invest in a variety of ways to reach consumers online.Social23.6%Growth 4.8 BillionProjected SpendThe spend on social mediaadvertising is estimated to reach 4.8 billion in 2012. This is up23.6% from 2011.73ADVERTISING

150 Smart Stats: Online Marketing Trends Every Business Needs to KnowHow Does the Web AffectYour Business?The Web is dramatically influencingconsumer behavior and changing how yourbusiness connects with potential customersonline. The information available online todaygives consumers power that they haven’t hadbefore, and this will only continue to grow.That’s why you need a Web presence thatallows consumers to find you, connect withyou, support you, and do business with youonline. This isn’t just a trend. It’s a new way ofdoing business.30

31150 Smart Stats: Online Marketing Trends Every Business Needs to KnowLike our stats?There are many ways to learn more.ReachLocal Newsletterreachlocal.com/newsletterReachLocal Learning Centerresource.reachlocal.comCall UsFollow reachlocal.com 866.822.7358 2012 ReachLocal, Inc. All Rights Reserved. ReachLocal is a registered trademark. All other marks are the property of their respective owners.

150 Smart Stats: Online Marketing Trends Every Business Needs to 25262728293031323334353637Local Consumer Review Survey ommendations-114152BusinessNewsDaily s-adwords-small-business-tools.htmlBIA/Kelsey Pew Internet -(Adults)/Whos-Online.aspxcomScore http://www.comscore.com/Press Events/Presentations Whitepapers/2012/State of US Internet in Q1 2012Social Media Todayhttp://socialmediatoday.com/node/504064Pew Internet -onlinecomScore http://www.comscore.com/Press Events/Press Releases/2012/6/comScore Releases May 2012 U.S. Search Engine RankingscomScore http://www.comscore.com/Press Events/Press Releases/2012/4/comScore Releases March 2012 U.S. Search Engine RankingsCNET http://news.cnet.com/2100-1025 3-6091289.htmlPew Internet rch-Engine-Use-2012.aspxPew Internet rch-Engine-Use-2012.aspxForrester tify-seo/36762/Search Engine opping-seo-statistics/42665/Google Research act-of-organic-ranking-on-ad-click.htmlPew Internet nternet-Social-Networking-less-detail.aspxcomScore http://www.comscore.com/Press Events/Presentations Whitepapers/2012/2012 US Digital Future in FocusPew Internet nternet-Social-Networking-less-detail.aspxEdison Research fSocialbakers ited-statesFacebook Q2 Earnings Report easeID 695976CheckFacebook http://www.checkfacebook.com/Semiocast http://semiocast.com/publications/2012 01 31 Brazil becomes 2nd country on Twitter superseds JapanMediabistro istics-2012 b18914Mediabistro etwork-use b18798LinkedIn Press Centerhttp://press.linkedin.com/aboutMediabistro etwork-use b18798CNET http://news.cnet.com/8301-1023 3-57419349-93/facebooks- 1b-instagram-deal- 300m-in-cash-rest-in-stock/ZDNet s-50-million-users/12250Instagram mbers-1-billion-photos-uploaded/comScore http://www.comscore.com/Press Events/Presentations Whitepapers/2012/State of US Internet in Q1 2012Experian Marketing tal-marketer-2012?WT.srch PR EMS DigitalMarketer2012 040412 DownloadMediabistro etwork-use b18798Local Consumer Review Survey ommendations-114152Social Media Marketing Industry dia-marketing-industry-report-2012/Intuit al-media-infographic/Intuit al-media-infographic/reachlocal.com 866.822.7358 2012 ReachLocal, Inc. All Rights Reserved. ReachLocal is a registered trademark. All other marks are the property of their respective owners.32

150 Smart Stats: Online Marketing Trends Every Business Needs to 758596061626364656667686970717273Intuit al-media-infographic/comScore http://www.comscore.com/Press Events/Press Releases/2011/12/More than 200 Billion Online Videos Viewed Globally in OctoberYouTube Press Roomhttp://www.youtube.com/t/press statisticsYouTube Blog ans-60-hours-per-minute-and-4.htmlYell Limited search-engine/eMarketer http://www.emarketer.com/Article.aspx?R 1008959InMobi mScore http://www.comscore.com/Press Events/Press Releases/2012/5/comScore Reports March 2012 U.S. Mobile Subscriber Market SharecomScore http://www.comscore.com/Press Events/Press Releases/2012/5/comScore Reports March 2012 U.S. Mobile Subscriber Market ShareSecurEnvoy token-weaker-than-tokenless-authenticationTelenav /infographic phonewars lrg.jpgTelenav /infographic phonewars lrg.jpgWikipedia http://en.wikipedia.org/wiki/NomophobiaNielsen http://blog.nielsen.com/nielsenwire/online core http://www.comscore.com/Press Events/Press Releases/2012/5/comScore Reports March 2012 U.S. Mobile Subscriber Market ShareeMarketer http://www.idc.com/getdoc.jsp?containerId prUS23503312IDC Worldwide Mobile Phone Trackerhttp://www.idc.com/getdoc.jsp?containerId prUS23503312ZDNet 7eMarketer http://www.emarketer.com/Article.aspx?R 1009120Pew Internet Look-at-Gadget-Ownership.aspxOnline Publishers pdf/MMF-OPA -- Portrait of Tablet User-Wave 2 -- Jun12 %28Public%29.pdfBIA/Kelsey hen-will-mobile-local-searches-eclipse-desktop/The Mobile Playbookhttp://www.themobileplaybook.com/#/4 1BIA/Kelsey aleze/comScore tudy%202012.pdfBIA/Kelsey re http://www.comscore.com/Press Events/Press Releases/2012/5/Introducing Mobile Metrix 2 Insight into Mobile BehaviorOracle /oracle-atg-mobile-wp-345770.pdfeMarketer http://www.emarketer.com/Article.aspx?R 1008971eMarketer http://www.emarketer.com/Article.aspx?R 1008971eMarketer http://www.emarketer.com/Article.aspx?R 1008935eMarketer http://www.emarketer.com/Article.aspx?id 1008783&R 1008783eMarketer http://www.emarketer.com/article.aspx?R 1008804eMarketer http://www.emarketer.com/Article.aspx?R 1008926Mobile Marketing s-year-22542BIA/Kelsey 0515-U.S.-Social-Media-Ad-Spending-to-Reach- 9.8-Billion-by-2016.aspreachlocal.com 866.822.7358 2012 ReachLocal, Inc. All Rights Reserved. ReachLocal is a registered trademark. All other marks are the property of their respective owners.33

Both paid search advertising and organic search engine optimization are essential tools to help you show up in search engine results. SEARCH 93% Of consumers begin on a search engine.13 75% Of searchers never scroll past the first page of search results.14 50% Paid search ads provide 50% incremental clicks even when a business ranks #1 for

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