Simple Product, Flat Fee, Proven Performance

Simple product, flat fee, proven performance – those are the ingredients for a successful local advertising offering to small and medium sized businesses.  Google’s new Local Listing Ads seem to have the right ingredients.  There are lessons here for all local advertisers.

Simple Product

Small business owners are busy running their business.  They don’t have the time or inclination to figure out complex products.

In Google’s case the offering is simple to set-up and easy to understand.  To set-up up local listing ads, you just have to:

  1. Claim and verify your Google listing (a good idea any way).
  2. Select your landing page – which defaults to a very functional Place Page provided by Google (so you can almost ignore this step).
  3. Select the categories where you want the ad to appear.

Google then creates your ad automatically (based on the information in your listing) and presents it based on the category  a user is searching, the location where they are searching and the location of your business.  All optimization is performed by Google.  There are no controls to tweak and monitor.  The ads automatically include a tracking number (more on this below)

Flat Fee

The business owner pays a flat monthly fee which is apparently based on their location and the categories they’ve targeted.  There is no bidding – it’s no haggle-free pricing.

Oh – and the first month is free.

Proven Performance

Google provides detailed information through Local Business Center that includes:

  1. How many people saw your ad.
  2. How many clicked on it.
  3. How many got directions to your business.
  4. How many people called your business.

And – whenever you receive a call you get a whisper telling you ‘this call brought to you by Google’.

The service is fully transparent.  At the end of the first Free month a business owner will easily be able to assess whether or not the service is providing value to them for the fee they are paying.

Applying the Recipe

All providers of local advertising can follow the same recipe:

Simple Product – This has always been a strength of traditional media like the print yellow pages.  People understand how the product works.  Someone visits you in person to set the product up!  But many digital offerings fall short by failing to ensure a functional landing page is used.  Google has addressed this with their Place Pages which are designed for optimization.  A landing page is an integral part of a complete digital solution – without one there are a lot of wasted clicks.

Flat Fee – I’ve said this many times.  Small businesses want simple pricing – combined with proven, transparent performance.  People too often link the idea of performance driven advertising with variable, performance driven pricing.  This just scares a lot of small business people.

Proven Performance – This is the most important part: you have to deliver the leads to the merchants and PROVE that you’ve delivered those leads.  Google’s service is fully transparent.  As a merchant you don’t control where and when you ad get’s placed, but you do know how well it’s performing and can choose to carry on or not.  As I’ve written before, all forms of advertising should be tracked – including print media.  Imagine a small business owner hearing ‘this call brought to you by the print yellow pages’ every time someone called a number from the book.  That would prove value in the media to them.

More on Local Listing Ads from Mike Blumenthal and Greg Sterling.

Want a review of your local advertising product  strategy?   Contact me at eric AT predictabuy.com.

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