Economic Development Online - The Internet and Websites

Economic Development and the Internet

Information technology is significantly transforming the way that people interact, communicate and work. With over 1 billion million people on the Internet in 2006 (Internet World Stats), organizations are responding by providing services to meet this expanding demand. Private companies recognize that the businesses which leverage technology to provide the best services will have a competitive advantage to achieve their goals. Economic development agencies are in a similar competitive environment because other economic development agencies are eager to lure the same customers and businesses into their communities.

As the Internet is affecting the way that businesses are providing services, so too is it affecting the process of economic development, community marketing and business attraction.

A 2006 survey of economic developers by AngelouEconomics shows that the Internet is the #1 most effective marketing tool.

"In the past five or six years, the dynamics of the site selection industry have changed more than the previous 40 years combined. What’s driving such change? Simply put, the availability of information through the Internet…The site selection consultant uses the information from a community’s web site and other online sources. If a community doesn’t have a website, the website cannot easily be found or it doesn’t have the right type of information, the consultant moves on to other communities that have the information he or she needs." - “The Internet Has Changed the Dynamics of Site Selection” by Bob Ady, May 2006

The International Economic Development Council (IEDC) published an article in "Economic Developments Now" surveying site selectors.

"We wanted to know which media work best if you're trying to get site selectors' attention. We asked several nationally know consultants. The general consensus: A good Web site." - Economic Development Now. January 15, 2002. Volume 2, Issue 1

The Internet is an important site selection tool used by companies. According to Dennis Donovan, Senior Managing Partner of the Wadley-Donovan Group, 85% of expansion and relocation decisions are made without the help of a professional consultant. These companies are seeking out information on their own and the Internet is a key source of that information. Nearly 90% percent of site selection searches begin on the Internet (Milwaukee Journal Sentinal) and, according to a study by consulting firm Whittaker Associates Inc., 84% of site selectors access information from the Internet in their site-selection process.

"Make no mistake, communities that have a Web presence will be the communities that bring in big business and reap tremendous rewards" - Trent Boozer, president of U.S. Sites and Development

A Development Counsellors International 2005 survey of corporate executives with site location responsibilities indicates that the three most useful features of an economic development website include information on incentives, demographic information and a directory of buildings and sites. A ranking based on effectiveness as a marketing tool placed the Internet/website ahead of public relations/publicity, hosting special events, tradeshows, direct mail, advertising and telemarketing. So if you're spending more money on these things than the your website, you may not be leveraging the most effective use of your money. From the 2002 to the 2005 survey the importance of the Internet as a marketing tool increased 56%, which was the highest growth of any marketing tool.

"There are many rooms in the House of Marketing," I said in a talk in the 1970s, "but no one of them contains the single secret of success." Now I'm not so sure. The web-site is becoming the marketing instrument of choice by serious site-seeking executives and their advisors with the speed that makes the word 'revolutionary' something of an understatement. - Ted M. Levine, Founder and Chair of Development Counsellors International

An Area Development Corporate Survey revealed expansive use and growth of the Internet as a source of site selection information.

"These websites exist for many reasons. First and foremost, they’re relatively inexpensive yet high-profile marketing tools for their owners. They promote one or more areas, and in doing so, help level the playing field for regions seeking new business investments. They also support efforts to land new investments and jobs, more tax revenue, and the benefits associated with increased economic vitality." - Lisa Bastian, "Getting the Best From the Web" Area Development

It is clear that the use of the Internet to provide businesses the site selection information they need over the Internet is critical. Economic Development Online .com shows you the steps to provide the needed information and services to effectively leverage the Internet.