Over the next two years, the sagging US housing market will drive a nearly 50% increase in website adoption by small and medium-sized businesses that provide home and trade services as these businesses step up marketing efforts to compete for fewer projects, according to research from The Kelsey Group, MarketingCharts reports.

Though website adoption by small and medium-sized businesses has grown from 54% in February 2007 to 61% in August 2008, only 33% of home and trade service SMBs - including painters, plumbers and carpet cleaners – currently have websites, The Kelsey Group said.

Kelsey’s Local Commerce Monitor study found that the housing bubble that preceded the current down market caused a slowdown in new media adoption by home and trade service SMBs. However, as the market continues to slow and projects become scarcer, website adoption by these businesses will grow to 60% by 2010.

"Home and trade service SMBs will look to peer businesses for options when considering how to generate leads," said Matt Booth, SVP 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 CMO, 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 website – it's an essential part of their marketing tool kit."