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Study: Local search advertisers conflicted about channel

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Williamsburg, Va.—Despite the powerful growth of search marketing, abandonment of the channel is high among small and midsized businesses seeking local exposure, according to a new report by research company Borrell Associates.

In its study, “Economics of Search Marketing: Addressing the Challenges of a Scalable Local Online Advertising Model,” the company found that search engine marketing vendors lose roughly half of their SMB customers after one year, attributing the churn to “unrealistic expectations among local businesses.”

However, the study concluded that the potential for search campaign success among SMBs is strong, as the remaining 40% of these companies without an Internet presence build Web sites and add measuring technology to help evaluate their local search campaigns.

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