A recent BusinessWeek story found that while small businesses may be getting click throughs on Internet search ads, they aren’t getting the customers. Why? The clickthroughs on search ads are wasted as more users shop around online.
On the other hand, large companies are increasing their revenues through the use of search ads because they have larger inventories and can lower prices – meeting the consumer’s demand of low prices–and driving down their overall costs for search ad placement.
With search ad advertising being dominated by larger companies, smaller businesses are turning to advertising through social networking avenues. Blogs and niche shopping sites are becoming better advertising venues for small businesses.