Demand for local search ads have skyrocketed since the advent of daily deals, which are willing to pay premium prices to target people in specific neighborhoods with local goods or services, and now a similar dynamic is poised to occur in mobile search as well thanks to Apple's new virtual agent, Siri.
The source of the disruption in the local search market is due to the mad proliferation of daily deal sites. If competition is very intense in a city, local advertisers can end up on page two of Google search results and that often means no one clicks on their ads, Chris Wallace of digital marketing agency iCrossing told Reuters.
"Once a daily deals aggregator enters a market they're unlikely to leave. The number of services they offer will likely increase and the number of search terms they bid on will increase."
Now it seems the same disruptive effective will occur in mobile local search, albeit from a different source. Siri - the intelligent virtual search agent that is part of the iPhone 4S - holds similar implications, Michael Boland writes at Street Fight Magazine.
That is because of the propensity to use voice search when one is out and about running errands. “One question is whether Apple will begin to see this positioning as a way to seek a revenue share for generating leads to local businesses,” Boland wrote. “For now it’s rather driving more search traffic to the Googles and Yelps of the world — apparently without compensation.”