Watch out! An army of local entrepreneurs is coming
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Borrell Associates predicts that in 2009 local online advertising will hit $14.2 billion, while 2010 will be only $14.9 billion– a measly 5% increase.
I would agree that local online ad dollars are not going to grow in the near term– the reason not being hyper-competitiveness, but the exact opposite. Ad dollars on Google AdWords and Facebook are squandered so badly that why would any business want to throw good dollars after bad? If Fortune 500 companies can’t get their PPC and listing campaigns right, what chance does a mom-and-pop have?
Enter small advertising agencies, who themselves are local, serving local clients. Arm them with templated PPC campaigns, templated listings processes, templated wordpress site creation, email autoresponders, and all the rest. Make it idiot-proof, such that anyone (your mom, for example) could do it.
I don’t believe that the giant agency will be able to compete against this new breed, since a call center employee is not as powerful as someone living in your neighborhood who is well-educated, really cares, has less overhead, and is more nimble. After all, if you’re a one-person agency and are relying upon that income to help support your family, you’re going to take your role more seriously. You have to see that client face to face– so you better do a great job.
But to empower this hidden or underemployed workforce– the JetBlue moms of the world– a company needs to step in and create a system that is so simple and so powerful that even the ShamWow guy would be impressed. That is the goal of BlitzLocal and watch as we roll it out over the next year.
You can build the most awesome software, but if you can’t get it in the hands of these analysts– who are franchisees– then it’s no good. This is the equivalent of the “last mile” problem in telecom. It’s less a software development problem than one of organized processes to find, train, and manage this workforce.
The definition of local advertising is starting to change as well. Are industry journal counting Facebook for local, which is now 74% of their 2009 revenues? How about the services popping up to get businesses listed in the various on-line directories, such that they can increase their number of citations — thereby showing up in maps? What about video and other types of user generated content?
Thus, on an apples-to-apples basis, the traditional Internet marketing ad channels won’t grow– and neither will the mega agencies that are trying to scale them. They churn out customers too fast. But overall, I predict tremendous growth of the one man (or one woman) shop– an army of nimble, hungry folks who will be savvy in using Facebook, Google AdWords, and every other marketing channel available to them. The economy is ripe for some massive entreprenuership in 2010. Are you a stay at home parent looking for something other than the next Tupperware, MLM, or Acai scam? Maybe you’re looking for some part-time income but were afraid of computers– or are tired of licking stamps.
If you want to join us, send an email to dennis@blitzlocal.com and tell me why.
Tags: facebook small business, local franchise marketing, local online advertising stats, stay at home jobs

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Trackback by uberVU - social comments — November 7, 2009 @ 5:33 am
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Pingback by Watch out! An army of local entrepreneurs is coming — Affiliates Insider: Showing You The Insides — November 7, 2009 @ 3:00 pm
Excellent post!
Comment by Gus — November 16, 2009 @ 8:18 am
Dennis and everyone reading this-
Local Businesses are realizing the need to market online, but they are not sure of what is meant by SEO, squeeze pages, etc. Please do your part in being authentic and educate them on what you are doing and why.
Call it Kharma, bs, or something else, but when a customer does not know what they are getting, they will assume that your Internet Marketing is a quick fix that will solve all their problems of marketing woes.
And as you know, the work is more of a process.
Comment by Reid Peterson — November 17, 2009 @ 12:34 pm
hi
MY NAME IS patrick swan AND I AM GOING INTO ‘LOCAL SEARCH. I am a reseller for americasbestcompanies tm.
and I speak to many small business owners per day. I am currently preparing for my adwords certified professional test
and recently passed HUBSPOT”S inbound marketing cert.
I live in Buffalo,NY ;my business name {and website will be 123gosmallbiz.com,
THANKS
patrick
Comment by Patrick Swan — November 19, 2009 @ 10:51 am
[...] Sales compensation models: A common complaint among clients is that once they sign a contract, they never hear from the rep again. That rep is already on to the next prospect, ready to sell, sell, sell—hit the aggressive quota or be terminated. To our knowledge, no other company in the industry pays their people according to retention and client satisfaction. Agencies should agree to compensate staff based on client performance, else we face a repeat of the long distance telecom switching battles witnessed in the 1980’s. The social gaming model will potentially transform the Farmville players into an army of local resellers. [...]
Pingback by Evolve Or Die: 2010 Local Ad Agency Fiscal Models » aimClear Search Marketing Blog — January 5, 2010 @ 8:53 am
[...] To serve local businesses, you need local resellers. And those folks– the hidden army of local entrepreneurs– are already in their communities. They will be more effective at selling and servicing the [...]
Pingback by Dennis Yu: local online marketing, facebook advertising, internet guru » 2010 is the year of the work at home mom — January 22, 2010 @ 6:09 am