Decision of Uncertainty Paper

Decision of Uncertainty Paper

With taking a position as a financial support analyst, the inner workings of ReachLocal are very much of interest. ReachLocal is a search engine marketing firm that uses the Internet and World Wide Web to deliver information to attract customers to businesses. The mission of the company is to help small to medium size businesses (SMBs) manage their digital transformation and research new and existing customers online (ReachLocal, 2010). The vision of ReachLocal is that soon, businesses will acquire, manage, and retain customers 100% digitally (ReachLocal, 2010).

There are advantages for small to medium sized businesses to advertise online. One key benefit is the instant publishing of information. Another advantage is that businesses will be able to tap into the vast population searching for products and services online. Search engines have become a resource most Internet users have come to rely on. However, advertising online can be expensive. With the changes in the economy, many businesses are not able to allocate a part of their budget for online advertising. Others may not be as familiar with the Internet and how it works, or not willing to take money from traditional advertising, such as newspapers, magazines, or the phone books, to put into online advertising. Thus, a decision is needed to determine whether or not to advertise online.

Research

For a business owner to decide if they want to spend anywhere from $300 to $20,000+ for online advertising, research is needed. According to Pew Internet (2002), 85% of American Internet users have used online search engines to find information on the web and 29% of Internet users rely on a search engine on a typical day. With this information, it is fair to say that search engines, such as Google, Yahoo, and Bing, are the number one resource used by consumers looking for a local business. With this in mind, over 80% of local searchers follow-up offline with a phone call or in-store...