Think of online directories as Internet versions of the yellow pages. They offer basic information about a company or service, and some include interactive services such as a locator. Users can search by name, business, or location.

Traditional phone companies pioneered the directory concept, but it is now used by businesses in many industries to reach a target market, including specific ethnic and demographic groups and neighborhoods. There are now thousands of online directories, and the growth rate of the tactic is impressive — the number of online directories increased more than 30 percent in 2006. Experts estimate the slice of the online advertising market to be about 7 percent (as of March 2008).

Online directories use search engine technology to allow users to navigate the listings. Some online directories are edited by human beings and others are automated. A business may submit information to an online directory either for free or after paying a fee. There are consultants and advertising strategists who will assist with directory advertising as part of an overall package of services. Analytics allow an advertiser to track whether visitors to the company Web site are coming via the online directory listing.

Just as a yellow pages ad was once a given, many experts say there are few businesses that would not benefit from an online directory listing. The trick is understanding which online directories to target and how much money to invest in your listing. The strategic communication tactic also favors products that are not considered impulse buys — an individual searching an online directory has probably made a decision to buy and is now just searching for the right provider.

Case in Point
Helene Taylor, author of The Modern Woman’s Divorce Guide, took a hands-on, do-it-yourself approach to using online directories as an Internet advertising strategy. After reading several books on search engine marketing, she opted to try a variety of online directory listings, from Yahoo (which charges businesses for listings) to the Open Directory Project (which is free). The process itself was not complicated. “The directories provide a form for you to fill out, so you know what information they need,” Taylor says. She also sought listings in specialized directories, such as those focused on female business owners. Then she employed Web analytics to track the traffic to her site. At this point, she says, 10 percent of her traffic is coming via her online directory listings.

Quick Tip
Taylor says the most important thing she’s learned using online directories as an advertising tactic is to choose directories that have higher search rankings than your own Web site. “You don’t want to bother with a directory whose page rank is lower than your own,” she notes. “That devalues your site.”

Permalink: http://www.fuelnet.com/?p=303