The 2013 study, which features 2012 data compiled from several comScore digital and mobile metrics databases, demonstrates a significant shift in how consumers are accessing the Internet and emphasizes the importance of local businesses embracing mobile platforms as yet another venue to reach consumers.

Rise Of Connected Devices Provides New Paths To Web

Before exploring the latest trends in local mobile engagement specifically, it’s valuable to recognize the rapid growth of mobile and other connected devices and their impact on how consumers are accessing the Internet.

In the third quarter of 2012, the share of smartphones in the U.S. marketplace finally overcame feature phones. This is a major milestone because smartphones provide consumers with easier access to the Web and the ability to use applications, among other advanced features.

Within the U.S. smartphone market, Google and Apple solidified their operating system dominance, with Google’s Android (53.4% market share) and Apple’s iOS (36.3%) representing nearly nine out of 10 smartphones in use at the end of the year. Blackberry lost more than half its market share over the course of 2012, dropping from 16.0% share to 6.4%.

While smartphones reached a majority of the mobile phone market in 2012, the bigger story was multi-device ownership within the mobile space as there is a growing prevalence of other “connected” devices.

In fact, more than one in three (37.3%) of all U.S. smartphone users also owned other connected devices at the end of 2012, including tablets (28.8%), eReaders (10.0%) and other handhelds like portable gaming devices (4.1%). These devices are providing consumers with yet more ways to reach the Internet.

The pace of adoption of connected devices other than smartphones is remarkable. While it took smartphones nearly a decade to reach 40 million owners, tablets crossed that threshold in only two years since the launch of the first iPad. This shows that new technology – both what’s been developed recently and will be developed next – is poised to reposition the marketplace at much faster rates than was once possible.

Online Traffic Patterns Are Rapidly Changing

As you can see in the number of PC users that accessed the Internet between 2009 and 2012, online traffic patterns are changing.

Last year, rapid growth of connected devices drastically changed how consumers accessed the Internet as PC use appears to have peaked. Growth in the number of PC users accessing the Internet flat-lined for the first time last year.

Meanwhile, the share of Web traffic from non-PC devices, including smartphones and tablets, more than doubled to 15% from 7% over the course of 2012 alone.

In another demonstration of how quickly the market is changing, Apple, which once dominated online traffic from tablets with 99% market share at the end of 2011, saw its share in Web traffic drop to 85% at the end of 2012 with the rise of Android-powered tablets (14% share at the end of 2012).

Local Mobile Engagement More Profound Than Other Categories

While local mobile engagement was found to be greater than engagement in other categories, the increased mobile traffic is not equal for all players.

The percentage growth of page hits on online directories/resources from non-PC devices grew much more than overall Internet use in 2012. The share of Web traffic from non-PC devices for directories/resources rose more than 20 percentage points from 6% to 27% of all Web traffic over the course of the year. That rate is more than double the 8 percentage point growth in total Web traffic on non-PC devices.

In December 2012, nearly one in two (48%) mobile users accessed local content, up from 42% in December 2011. The figure will continue to rise with the greater adoption of smartphones: 77% of smartphone users accessed local content, compared to just 14% of non-smartphone users.

As a growing number of consumers use mobile to access local content such as business directories, classified ads, maps, and movie information, they are showing a preference for apps over browsers. Approximately 77 million smartphone owners relied on apps to visit local content in December 2012, up 22% over the course of the year. About 69 million users relied on browsers, up 12% over the course of the year.

However, Internet Yellow Pages sites (IYP) such as SuperPages, YP, DexKnows, Yelp, and Citysearch show different access behaviors currently. Approximately 8% of smartphone users accessed IYP apps in the fourth quarter of 2012, while a larger portion – 12% of users – leveraged IYP mobile sites via their browser.

But, the numbers are more attractive when broken down by demographics. Despite being a small subset of the smartphone audience, IYP app users demonstrated they were highly attractive to advertisers based on their age and income.

Not only were IYP app users more likely to see ads on their smartphone than the typical smartphone user, they were more likely to make purchases via their mobile device and spend more money in a given month in their on-phone purchases.

The results of LSA’s “Mobile Landscape Report” offer some important conclusions for the local business owner contemplating next steps in their marketing plan:

• The rise of smartphones and other connected devices – and the resulting shifts in how consumers are accessing the Internet – demonstrates the continued diversification of the media landscape. Local businesses should be introducing advertising strategies and mobile and tablet-friendly websites to attract consumers increasingly accessing the Web from their handheld devices.
• Yet, as connected devices are more widely adopted, local businesses must also recognize that the “old” PC platform currently commands a much greater share of Web traffic. Adopting a multi-platform advertising approach, which places value on all potential lead sources, is still crucial. Local businesses must keep one foot in the present while stepping forward to what’s next.
• Google’s Android and Apple’s iOS have achieved near-domination of the smartphone and tablet operating system markets. Any mobile campaign, websites, or application must be accessible from both platforms.
• Over 60% of smartphone consumers are now accessing local content on their devices; and, while consumers prefer apps to search for local content, use of browsers is also strong. Local businesses should ensure their mobile efforts include both apps and browsers.
• Growth of non-PC share of traffic for directories/resources is far outpacing growth in share for total Internet.
• The share of smartphone users leveraging IYP apps is small. That said, IYP app users are a very attractive demographic: they’re the right age, more likely to shop on their phone, and more likely to spend more money via their phone.

Two platforms that really caught my attention with this study are mobile and online coupons, which by all indications, are growing by leaps and bounds as ways for consumers to find local businesses.

Mobile Local Search Shows Double-Digit Growth

The study found that as of January 2011, 77.1 million mobile subscribers access local business content, up an astonishing 34% from a year ago. In fact, local content users now account for one-third (33%) of all mobile subscribers, up from 25% last year.

Adding to the significance of this growth is the spike in the number of local mobile content users with GPS-capable devices, which grew to 87% from 76% last year.

Today, more than six in 10 (64%) of local mobile content users own smartphones. The most popular smartphones used for local searches range across the three major platforms: Apple, Google’s Android, and RIM’s Blackberry.

Double-digit growth is prevalent across all major categories of local mobile search. The study found that among all mobile subscribers surveyed this year:

• 26% accessed weather, up 41% year-over-year
• 18% accessed maps, up 41% year-over-year
• 12% accessed movie information, up 32% year-over-year
• 10% accessed restaurant information, up 40% year-over-year
• 8% accessed business directories, up 26% year-over-year
• 8% accessed classifieds, up 51% year-over-year

Accessing  local content via mobile applications is also on the rise. While local mobile content users most frequently access local content via a browser (73%), about 56% of local content users do so through  an application, up 34% year-over year.

What are  the key takeaways?

• With so many consumers using mobile to conduct local business searches, local businesses can no longer ignore mobile as an advertising medium.
• Local businesses should invest in building mobile-friendly websites so consumers can easily access their content in mobile browsers. Restaurants, for example, should prepare mobile-friendly menus and reservations tools.
• Local businesses should ensure they are listed among all major online business directories, ranging from Internet Yellow Pages to local search sites such as CitySearch and Yelp, so that consumers can easily find them no matter what service they are using. They should also check to make sure their listings appear among listings in popular local search applications.
• Given the high percentage of local mobile content accessed by smartphones with GPS capability, local businesses should explore whether opportunities to advertise via location-based advertising platforms such as Foursquare and Gowalla make sense for them.

Online Coupons Satisfy Customers & Drive Repeat Sales

Online daily deal coupons are quickly growing in popularity among consumers, with nearly 4 in 10  local searchers (37%) having purchased one in the past.

When broken down, the  study found that primary IYP searchers were less likely to report purchasing online coupons for local businesses than business searchers on other sites (27 percent vs. 38 percent).

The most popular types of business coupons include restaurants (56%), retail stores (32%), and tourist attractions (13%).

Most striking are the high customer satisfaction and repeat customer rates associated with online coupons. Seven in 10 (70%) local business searchers said they’re satisfied with online coupons they purchase,  and only 1% are dissatisfied.

A high 79% of those purchasing online coupons said they used or visited the local business again after taking advantage of the coupon.

What are the key takeaways?

• Local businesses need to recognize the value of online coupons as a successful and useful advertising medium to attract new customers. The data show that customers are universally satisfied with coupons and are highly prone to use them.
• Local businesses should consider both the short- and long-term return on investment opportunities of a daily deals promotion (through Groupon, Living Social, YP.com or another service). This should be viewed through a two-way prism: on one hand, immediate sales resulting from the redemption of coupons by customers; and on the other, the high potential for new sales through repeat customers.
• Local businesses should conduct research on which daily deal site is most applicable to their local area and business category. They should then experiment with a variety of different coupons and daily deal promotion options to see what works best for them and their customers.

As this study shows, the local search space is rapidly changing. Local businesses need to stay on top of the latest trends and be willing to take chances on new ways to find customers in order to grow their businesses in today’s environment.

Most importantly, they need to find ways to integrate their advertising strategies across various platforms to ensure they reach potential leads wherever they may be.

While there’s basic knowledge that consumer media habits are transitioning, many businesses often lack an in-depth understanding of exactly what has changed and how they should be adjusting their marketing strategies to match current trends.

This month, new data was released from the research firm Burke looking at habits of consumers searching for local business information across various local media.  The results verify common perceptions, but also clearly dispel some notions about how people find local information.

In an earlier post on Search Engine Land, Greg Sterling provided top-line results on the study. I’d like to go a step further and translate the findings into five key takeaways to consider when planning your local advertising strategy:

Consumers Searching For Local Businesses Continue To Grow

In 2010, major search engines such as Google and Bing ran neck and neck with Yellow Pages and topped other media like magazines, newspapers, and coupons as the go-to source for local business information.

Approximately 67% of study respondents said they used search engines to find business information within the past month, topping other media sources.

Search engines also received solid marks in the trust and accuracy categories – second to Yellow Pages. About 41% of respondents said search engines are the individual source they trust most, while 39% said they think search engines provide the most accurate information.

So what should you consider when trying to attract new customers via search engines?

• Ensure that your company’s website – as well as its profiles on local search sites such as Google Places, Yelp and Citysearch – have detailed, up-to-date and accurate information. The last thing you want is for potential customers to reference outdated store hours or invalid payment options – and for you to lose a purchase as a result. The more complete your listings, the more legitimate your business appears. Also add authenticity by featuring photos and videos illustrating your business in action.

• Encourage customers to post regular reviews of your business on a variety of local search sites so that potential customers know you do a good job. Recently, I went on a local search site to find a pizza place, and selected one that appeared at the top of search with plenty of positive reviews. The delivery came with extra cans of soda and a hand-written note asking me to post a review if I was happy with my order. I was so impressed with this small gesture that I immediately posted my feedback. The business’ tactic helped drive me to the listing in the first place—with so many positive reviews, it appeared high within search results.  The approach also will make it more likely the next potential customer searching for pizza will contact that business as well.

• Monitor the online conversation about your business and engage when necessary. If a customer posts a negative review, respond quickly and offer tangible steps to remedy the situation. While some details likely will need to be discussed directly – and you should try to take that conversation offline as quickly as possible – do your best to respond publicly, acknowledging that you are addressing the customer’s concerns. If the situation is easily fixed, don’t be afraid to ask the customer to post an update acknowledging you have made things right.

Remember Yellow Pages Have Gone Multichannel

Yellow Pages have always been about connecting buyers and sellers, but Yellow Pages companies today offer print, Internet and mobile local search solutions.

Print and Internet Yellow Pages remain a leading source of local business information. Print and Internet Yellow Pages were used by 84% of respondents to find a local business within the past year.

In 2010, consumers generated 11 billion references to print Yellow Pages. Recently, comScore found that Internet Yellow Pages generated 5.6 billion searches in 2010, for a Yellow Pages industry total of 16.6 billion.

Respondents indicated Yellow Pages are the most trusted, most accurate source they choose first when searching for local business information. They also rate Yellow Pages as the easiest and most convenient to access, and the source they find “best in class.”  Another key metric worth noting: about 8 in 10 Yellow Pages lookups resulted in a purchase or purchase intent.

How can your business leverage a multichannel approach?

• Monitor the success of your local advertising strategy and shift dollars between platforms to achieve the highest rate of return. Businesses advertising in print, online and mobile directories can track new customer calls resulting from individual listings and determine whether they are quality inquiries that are resulting in real sales. You can use this detailed data to drive your decisions to expand listings on certain platforms and cut back on those that aren’t attracting a worthwhile number of leads. When all is said and done, you’ll have a better understanding of which available platforms work best for your business.

• Explore opportunities to advertise on new platforms and services, ranging from vertical websites dedicated to specific industries to daily deals that can provide immediate, real-time exposure and sales for your business. These initiatives can be launched in conjunction with your existing ad buy to maximize results.

Social Is Just One Piece Of A Larger Strategy

Online social networks are growing fast, but their current reach as a resource for local business information is more limited to other media. Go ahead and get ahead of your competitors by building your social networking presence.

Almost one in three respondents (32%) said they used a social network to look up local business information within the past year.

While consumers have shown interest in engaging local businesses of all kinds on social networks such as Facebook and Twitter, this data shows that a social-only strategy will not provide the greatest reach. That said, growing adoption of social networking and new and upcoming features for local businesses to gain added exposure on these sites will likely drive higher usage in the years ahead.

What should you consider when building your approach to social media?

• Continue to invest in creating active and engaged communities through your Facebook and Twitter pages, which should be integrated into your website and actively publicized in your ads and customer materials. This begins by providing compelling content on a daily basis, ranging from updates on new products and services to special promotions. It extends to offering your unique perspective on issues that you know about to gain credibility among your followers. And it continues by creating an environment where your followers are encouraged to engage with you and others, and where you actively respond to them.

• Consider paid advertising opportunities to simultaneously engage and attract social media followers and generate new sales.

• Look at your social networking strategy as one that may be much more about building reputation and goodwill towards your business – and in many cases, engaging customers – than serving as an active driver of new business leads. While your return on investment may not always be clear, don’t underestimate the long-term value of the direct connection you are building with your customers.

Differences In Customer Demographics

The ways in which consumers search for local business information are driven in part by demographics – which means your advertising approach should consider your target consumer.

The Burke study found key demographic differences in how consumers searched for local business information within the past month, including:

• Consumers aged 18-35 were significantly more likely to use Internet sources – including search engines, Internet Yellow Pages and social networks – to find local business information than other sources.

• Print Yellow Pages usage is higher in rural areas, although nearly half of urban and suburban residents used print directories within the past month. Suburban residents are more likely to use search engines and Internet Yellow Pages than urban or rural residents.

• Men are more likely to use search engines to find local business information than women.

• Use of Internet sources increases with income.

What should you do to ensure that your business is considering demographics when planning its local advertising strategy?

• Keep on top of the latest research about your target customer demographics and approaches by your competitors to attract new customers

• Try new approaches, but don’t stop using one medium that generates results simply on the perception that it’s no longer popular. On the other hand, don’t stick just to one medium simply because it’s working – when opportunity may exist to generate additional results by expanding your reach.

Ignore Any One Medium At Your Peril

Given today’s fragmented media environment, it’s best to leverage as many local search offerings as possible to promote your business. The Burke data shows that consumers consult two to three sources on average when searching for local business information.

Recently, several Yellow Pages companies have partnered with major search engines and local search sites to expand the distribution of their business listings. A local business advertising with Yellow Pages can potentially see its listing appear on a variety of additional sources of local data, both online and mobile.

Some Yellow Pages providers are selling specific local search services, including sponsored links on search engines, through these agreements. Additionally, some companies have launched application programming interfaces (API) that allow partnering local search sites to stream their directory content into their sites and applications. As a result, one ad placement can appear in multiple locations – significantly improving return on investment.

What does this mean for your local business?

• Be strategic about your advertising selections to ensure that you’re maximizing opportunities to be seen in most if not all of the places your target customer is looking.

• Don’t rely on just one medium to advertise simply because it’s the most popular or trendy. Determine your ongoing strategy based on performance, including real metrics such as the number of quality phone calls or click-throughs your ads generate. Every business is different, so always make sure you choose the solutions that will work best for you.