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Soft Housing Market to Drive Nearly 50% Increase in Web Site Adoption by Home and Trade Service SMBs Over Next Two Years
added: 2008-10-29

According to The Kelsey Group's Local Commerce Monitor study, Web site adoption by small and medium-sized businesses has grown from 54 percent in February 2007 to 61 percent in August 2008. However, home and trade service SMBs, which include categories such as painters, plumbers and carpet cleaners, lag in their adoption of an online presence: Only 33 percent have a Web site.

The housing bubble that preceded the current down market caused a slowdown in new media adoption by home and trade service SMBs, according to Kelsey Group analysts. As the market continues to slow and projects become scarcer, the firm expects Web site adoption by home and trade service SMBs to grow from the current 33 percent to 60 percent by 2010.

"Home and trade service SMBs will look to peer businesses for options when considering how to generate leads," explained Matt Booth, senior vice president and program director, Interactive Local Media, The Kelsey Group. "Web sites will be viewed as a cost-effective alternative; a channel that didn't make sense in a booming market will fast become a necessity."

Home and trade service businesses are heavily seasonal in nature with much of the work coming in the summer months. The Kelsey Group expects home and trade service screening sites like Angie's List and ServiceMagic and content sites like DIY Network to see increasing engagement, with consumers spending more time on these sites and viewing more content.

"Consumers today just don't hire service companies without doing at least a little bit of online research," said Angie Hicks, founder and chief marketing officer, Angie's List. "Service companies that aren't online are missing out on customers who are actively looking for the right company to give their hard-earned dollars. I don't know how any company can afford not to have a Web site - it's an essential part of their marketing tool kit."

"We've entered a new era in terms of home improvement demand," said Rice. "For the first time in more than 10 years, the real estate, construction and home improvement industries are in decline. We are going to see SMBs accelerate their adoption of pay-for-performance marketing out of necessity - and survival."


Source: PR Newswire

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