"It seems like investors are really hot for this idea of solving the problem of local advertising," states Cory Johnson.
May 23 (Bloomberg) - Zorik Gordon, chief executive officer of ReachLocal, Inc., talks about the migration of small-and medium-sized business customers to online advertising and ways smaller companies must adapt their marketing spending. ReachLocal helps small companies advertise online. Gordon speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (source: Bloomberg).
ReachLocal recreates the global footprint originally had by businesses such as the Yellow Pages and other offline media giants because small business owners aren't going to do self-service with Internet advertising. It is because of this that ReachLocal has a dedicated feet-on-the-street salesforce that helps local business owners establish a comprehensive web presence.
"It's interesting if you look at the way that small to medium sized business advertising spend has completely been disrupted," states Johnson. "It used to be classifieds and Yellow Pages. And Yellow Pages, people aren't using as much. Classifieds have been destroyed by Craigslist and so you kind of have this new kind of media out there."
With our Internet Marketing Consultants (IMC) and technology, ReachLocal makes it as easy to advertise online as it was to advertise offline, says Gordon. We take the budget for the small to medium business and then distribute it in a very intelligent and transparent manner where they need to be spending their Internet dollars. This budget is spent across a variety of mediums including pay-per-click (search engine marketing advertising), display advertising, social media, and local online deals.
How has media consumption changed in relation to the Internet?
"One of the numbers I came upon was that 10 years ago about 15% of the time Americans spend in their immediate consumption of TV, newspapers, magazines, radio was online, now it's 50%. That changes things for small business owners," states Johnson as he discusses changes between this tech age versus the dot com bubble of 10 years ago.
"Absolutely! Their [business owners] customers are digital. They want to interact in a digital format...They [business owners] have to follow their customers or, in a sense, perish and that's really the conundrum they run into," replies Gordon.