Local Business and Online Advertising -- A Missed Connection?

Quite the hot little subject these days. There's a great discussion about a new report from emarketer on MediaPost's Online spin blog titled "Can You Do the Local Motion."

The main question raised by the blogger and commenters is whether online advertising by local businesses is the next hot thing. Given what was found in the Marchex report I blogged about last week (that only 5% of local business advertising dollars are being used for online advertising), this certainly is an area for growth. I think the question is "how?"

There's seems to be a fundamental difference in how online advertising might work for a local business as for a national business. Local businesses are going to need more word-of-mouth and referral approaches. That's why I think sites like Yelp.com might help pave the way for more investment in online approaches. As local businesses get more used to the idea that people turn to the Internet for information -- even on their local, family-owned, non-fancy business -- they might be more willing to utilize some of these approaches.

At least I hope so, because I think I can help them out :)