When was the last time you used an actual phone book? And I do mean as something other than a booster seat for your three-year-old niece. When you needed a phone number or an address you probably went straight to your computer, instead of paging through the phone book.

The truth of the matter is that the Internet is gradually replacing the phone book as the nation’s primary directory for service providers, phone numbers, and addresses. Between mapping Web sites and search engines, it’s generally faster and easier to get information from the Internet.

That’s where online, local advertising comes in—while internet yellow pages do exist, all they tend to give you is a list, which doesn’t help much when your sewer pipe just exploded. Moreover, few people use online phone books: they prefer to “google” things. (Have you ever heard anyone use “yellow page” as a verb? Didn’t think so.) The point is, local online advertising is far more relevant than an IYP because people want to search and find relevant Web sites for their needs, not another list they have to sort through. That’s why local online advertising essentially serves as the phone book of today in terms of connecting businesses with customers: using targeted language, Web sites can be optimized for service and location. Meaning, for example, when you search for “broken fridge in Boston” you get connected with an appliance repair company in Boston MA.

No more flipping through those flimsy pages squinting at tiny type: local online advertising is more efficient, and because Web space is virtually unlimited customers get way more information than the 2 x 3 inch box the phonebook provided. Even better, as a business, your return on investment is trackable: with online advertising you get hard data including number of visitors to your Web site and calls received. Phone book companies can quote statistics all day, but their numbers are based on distribution—and books passed out doesn’t mean books read: a huge percentage of phone books end up in a dumpster or in a heap in the gutter.

Of course, advertising local businesses online does have some minor complications. With online, local advertising you have to keep in mind that instead of 3 pages of dry cleaners, you get six million hits. That’s why SEO—search engine optimization—is important in this type of advertising. The more specific key words, for both services provided and location, used in the Web site, the more effective it will be.

Now is the best time to get onboard with online advertising, because phone book usage decreases with every day. As Bill Gates, Microsoft maven, said, “Yellow Page usage among people, say, below 50, will drop to zero — near zero — over the next five years.” And, while online, local advertising is the way of the future, it’s also the way of today. Thousands of small, local businesses are connected with customers everyday via the internet. Whether they developed their marketing strategy independently or with the help of an SEO provider like Prospect Genius, online advertising is succeeding in bringing them business. As phone book usage continues to dwindle, companies that got online in the vanguard will already be established on the Web and stand to benefit even more.

The Internet is the best tool today for connecting local service providers and businesses with potential customers. Some business providers may think that the phone book is working for them since they still get calls, but at least 60% of people use the Internet to search for local services, not the phone book. Sure, you’ll still get the occasional call, but that’s from only 40% of the population. Imagine how many more customers you’d get if you accessed the people who look for businesses online!

And, while phone books may generate a small amount of business today, they won’t forever. Phone book readership declines everyday and will eventually die out. Without branching out into local online advertising, your business will stop getting calls… As the phone book becomes extinct, the Web only becomes a more important means of advertising. Because frankly, as Paul Collins so humorously put it in Slate magazine, “Ask anyone under 30 about phone books, though, and you might as well inquire about Victrola needles.”

Traditional media outlets like television and newspapers frequently use the term “new media” when referring to Internet-based technologies, from the simplest e-zine to YouTube to MySpace. Yet, that phrase seems completely out of touch with the reality of the situation. The Internet as we know it has been around for nearly 20 years, and the Web—with all of its blogs, search engines, social networking sites, and forums—is almost completely integrated into our society. As Ciaran Norris points out in an October 28, 2008, article, “For millions of people, the internet is simply another way of accessing information, no different from the TV, radio or magazines. It’s not new media, it’s just media.”

However, in titling his article “New Media Is Only New If You’re Old,” Norris points out that the Internet continues to be a new-fangled device to more mature generations. While today’s young professionals grew up cutting their teeth on computers, many older folks still have not adapted to the changing tools of the world. They’re still using phone books while their kids—and coworkers—are surfing the Web.

The key to effectively using this so-called “new media” is keeping it accessible to your audience, some of whom approach the Internet with trepidation. While twenty-somethings buying concert tickets won’t be overwhelmed by flash players and other interactive features, a senior citizen trying to learn more about Medicare might have a heart attack if confronted with too many bells and whistles.

So while online advertising and marketing is certainly the way of the future, it’s important to remember that the generations of the past are learning to use these tools today. More and more older adults are venturing out into cyberspace. Many initially turn to e-mail as a way of communicating with their children and grandchildren, but once they connect to the Internet they become potential customers. But they only stay that way until they’re confronted with a Web site that’s confusing or hard to navigate.

Audience awareness has always been a crucial aspect in successful marketing campaigns, but its importance is only amplified by the age divide created by the Internet. Depending on the goods or services you’re marketing, it’s essential to keep the less computer savvy in mind. Because even though “new media” has become mainstream media, it is still new if you’re old.

With so many service providers out there, and even more misinformation it’s hard to know what type of online advertising will be the best for your situation. Depending on things like time lines, budgets, target audience and sales goals, the answer to the question of which method to use will change. This article will hopefully give you some information about PPC and SEO campaigns and specifically how to decide which is right for you.
In the world of Internet marketing you can either pay your way to the top through a Pay Per Click (PPC) campaign, or you can work your way there with a Search Engine Optimization (SEO) campaign. Both can be effective, but there are benefits and drawbacks to each method.
These two graphs show the relationship between the amount of money spent and the traffic obtained for each traffic generation method. As you look at these graphs, think in terms of renting vs. owning a home.

Notice that with PPC (just like with renting), you can enter the market quickly, but over time you have to increase the amount you spend to sustain the volume of traffic. This is because more businesses are moving their advertising efforts online as local search happens less in the yellow pages each year. Evidence of this is supported by the fact that Google’s ad revenue has been doubling year over year.

Key points about PPC:
• More people bidding for the limited positions continually drives up your cost.
• Anyone willing to spend enough money can bump your business out of the rankings by out-bidding you.
• Because your position is “rented,” you are always at risk of being outbid.
• Gives immediate results with decreasing value over time.

An SEO program from someone like Prospect Genius is more similar to home ownership. Your investment of time and money buys equity in the rankings. This means that over time it becomes harder for others to bump your business from it’s position, giving you a lasting and sustainable advantage.

Key points about SEO:
• Cost remains the same while traffic increases.
• You build a sustainable advantage over time.
• Your cost per customer is almost always lower with SEO.
• Provides increasing value, especially after the ramp-up period.