September 29, 2006

A new study done by comScore indicates the results of an analysis revealing the actual size and current growth of the U.S. local search market.

Overall, local search is defined by comScore as queries conducted by consumers on local or Yellow Pages directories and other specific searches identified as having local intent.

According to the comScore report, 63 percent of U.S. Internet users, or approximately 109 million people, performed a local search online in July 2006. This represents a 43 percent boost when compared to July of last year.

Google Web sites (representing 30 percent) and Yahoo (accounting for 29 percent) took the largest share of local searches in July. For its part, Microsoft Web sites captured about 12 percent of local searches, followed by the Time Warner Network with just 7 percent.

Based on a recent comScore SSS (Search Satisfaction Study), 41 percent of Internet users conducting a local search query were searching for something in their home area, as opposed to searching for information on businesses in locales that they intended to visit.

Additionally, among those searching in their home area, 59 percent indicated they were searching for a restaurant or something entertainment-related, such as a theater, theme park or an attraction for sightseeing. Another 52 percent said they were searching specifically for a business phone number or address.

Two out of five local searchers (41 percent) were looking for information on a local service in their home area, including car rental office, dry cleaner or lawyer.

The comScore study also found that performing a local search drives consumers to take action. During the second quarter of this year, 47 percent of local searchers visited a local merchant as a result of their search behavior, while 41 percent made contact offline.

More than one-third (37 percent) made contact online as a result of conducting a local area search.

"Local search is experiencing strong growth as more consumers adapt to the 'always on' nature of their broadband connection, which enables them to quickly find information on local businesses," said Jack Flanagan, executive vice president of comScore Media Metrix.

"With approximately 849 million local searches conducted by Americans in July 2006, local advertisers have a sizable market that can be reached through leading search sites" Flanagan added.

Later this week, Steve Dennen, director of product management at comScore, will review additional findings regarding the local search market at the Search Engine Strategies Local conference in Denver, Colorado.

Source: Yahoo News