Since it launched its LAX local ad exchange Chitika has been taking a closer look at the local space. Chitika Research Director Dan Ruby sent me some data that show (on Chitika’s network) local queries generate higher click-throughs (CTRs) than non-local queries.
Chitika classified more than 5 million queries on its network into local, mobile and non-local categories. Here’s what the company found in terms of the CTR deltas:
According to Chitika’s Ruby:
When you compare queries that our system thinks are local to the general pool of search queries, the local searchers click on ads 38% more often.
The difference in the norm and local becomes even more pronounced when you look specifically at mobile devices: while mobile devices in general click at a 0.76% rate, local search queries on mobile devices click on ads 1.25% of the time – 64% more often.
Source: Chitika
Putting aside the specific CTRs, these data validate that local searches bring a more focused intent and often greater “urgency” than non-local searches. This is something we’ve known anecdotally for years — and online yellow pages users have often reflected — but is now being empirically documented by Chitika and others.
As a related example, Microsoft’s Dennis Glavin said during the recent SMX Advanced show in Seattle that the time it takes for 70% of users to begin and complete a search-related task on the PC is about a week. By contrast 70% of mobile users complete their search activity within one hour.
Source: Microsoft (6/10), data 2009
The relatively self-evident takeaway here is that local searches are “lower in the funnel.” And that’s even more true for mobile.
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See also: Chitika’s blog post.
July 23rd, 2010 at 3:17 pm
that is very very interesting hard data. Big news for adwords, and all its competitors
July 23rd, 2010 at 3:22 pm
Dave:
I think there’s lots more data out there like this, we just haven’t seen any systematic analysis to date. We all know that local ads and content are more clickworthy than broader, more generic content.
Local is an indicator of relevance to consumers both on the organic and paid sides.
July 23rd, 2010 at 5:36 pm
This is fantastic data Greg. Definitely something we’ll be sharing with our clients. We’ve been running local vs generic keyword driven conversion analysis for a while now, and a study like this backs up the case for local campaigns even more.
July 27th, 2010 at 4:20 am
Dig all your posts! I think local ppc ads have higher ctr’s because often the organic results aren’t relevant. Could be a business that has shut down or its a link to some random page on their website and you have to work to find their phone number. If I need a plumber and didn’t geo modify my search query and the first couple of organic links are the plumbers association and wiki…the ppc ad with a name I recognize and good call to action will get my click. I know they want my business and are ready to take the call.