Small Businesses Slow To Embrace Search: Study

If search engine marketing is the wave of the future, someone better tell small companies the surf’s up: Nearly six in ten small businesses that have Web sites don’t currently use paid search marketing. Of those, 90% have never even attempted it.

How deep is the resistance? According to Microsoft adCenter, 73% of the 400 U.S.-based small business owners said they’d rather try to do their own taxes than start a paid search marketing campaign.

Reasons for the reluctance among small firm owners that don’t use search vary. Eighty-nine percent feared using paid keywords would become too expensive. Eighty-one percent wondered if paid search marketing was the best use of their marketing budgets. More than one-third thought they would need an agency to set up a search marketing campaign. One quarter believe search marketing is too complex. And 21% think it is too time consuming.

Oddly, many acknowledge that they are leaving money on the table by not using this strategy. Eighty-six percent felt they are missing opportunities to grow their business, while three-fourths believe prospective customers might be searching online for their offerings.

The few that do embrace search seem satisfied. According to Microsoft adCenter’s research, 72% reported an increase in sales inquiries and 68% consider their paid search marketing efforts successful.

"Given today's current economic conditions, small-business owners need more effective ways to optimize their marketing dollars," said Brian Boland, director of adCenter at Microsoft Advertising, in a statement. "By investing in paid search marketing, small businesses can track online sales and determine the return on investment for their campaigns, while at the same time boosting traffic and visibility for their Web sites."

The study was conducted by independent research company Kelton Research in April 2008. Microsoft commissioned the quantitative research of 400 small-business owners with 250 or fewer employees via an anonymous online survey consisting of a series of 38 questions designed to gauge their search marketing behaviors and attitudes. Microsoft adCenter offers programs that include consultations for advertisers with comparatively small search budgets.