Home > Articles By Issue > Site Selector's Strategies > Article Mar. 2003

Are EDA Websites Living Up to Expecations?
The results of a survey of corporate real estate executives show what's working and what isn't.

By Howard R. Silverman President & CEO, CAI Corporate Affairs International

As the Internet continues to gain prominence as an indispensable tool for business, economic development agencies (EDAs) have responded with a growing assortment of Web sites marketing their jurisdictions to prospective investors. However, in spite of their escalating efforts to build a sustainable Internet presence, it is still unclear whether or not EDA Web sites are living up to the expectations of the site selection community.

A September 2002 study by Development Counsellors International, entitled Winning Strategies in the Economic Development Marketing Game, revealed that only 24% of corporate real estate executives actually employ the Internet during site location searches. In this regard, it would seem that there is a significant disconnect between the content provided by EDA Web sites and the needs of corporate real estate executives and site selectors.

ROI Research On Investment, the investment research arm of CAI Corporate Affairs International, conducted a survey to bridge the gap between EDA Web sites and the needs of the site selection community. A random sample of 50 economic development officers and 50 corporate real estate executives, from the U.S. and Canada, was contacted by phone to test their perceptions with regard to the importance and effectiveness of EDA Web sites in three categories.

EDAs employ their Web sites to satisfy three key requirements. First, EDA Web sites serve as a promotional tool, advocating the competitive advantages of investing in a given jurisdiction. Second, EDA Web sites play an important role as an informational tool, by serving quantitative data and qualitative analysis to inform the site selection process. Finally, EDA Web sites function as a directory tool, offering an index of contact information to facilitate the introduction of potential investors to regional service providers.

In addition, EDA Web sites can be generally be classified as either passive or proactive. Passive Web sites are those that offer standardized content with a low level of interactivity. These Web sites represent the most common approach to jurisdictional marketing using a "pull" approach. On the other hand, proactive Web sites tend to be highly interactive, with the ability to generate customized content on-demand, based on user input. In marketing terms, these Web sites are much more conducive to a "push" approach.

Getting the Message Out

The majority of EDA Web sites are fundamentally designed to function as a promotional tool for both economic development agencies as well as the jurisdictions that they represent. In this regard, EDA Web sites have largely supplanted the traditional brochure through their ability to instantaneously convey timely and accurate information on regional branding to corporate real estate executives. Furthermore, Web sites permit economic development officers to modify and fine-tune their marketing approach on an ongoing basis without concern for the shelf-life restrictions of more durable printed materials.

According to the ROI survey, 97% of economic development officers and 94% of corporate real estate executives believed that EDA Web sites play an important role as a promotional medium. Respondents from both segments were nearly unanimous in their belief that the Internet has become an essential aspect of jurisdictional marketing and promotion. In this regard, EDA Web sites must be regarded as a primary tactic for jurisdictions to simply get on the map.

However, the survey also indicated a pronounced divide between the perceptions of economic development officers and corporate real estate executives regarding the effectiveness of EDA Web sites as a promotional tool. In total, 43% of economic development officers and only 6% of corporate real estate executives felt that existing EDA Web sites are effective in promoting regional advantages. Conversely, 8% of economic development officers and 41% of corporate real estate executives stated that existing EDA Web sites are generally ineffective in a promotional capacity.

The most commendable EDA Web sites are those that demonstrate a clear understanding of the requirements of prospective investors through a polished marketing approach. A significant number of EDA Web sites do not make the grade purely on the basis of their creative design and technical presentation. A slick appearance and a professional interface go a long way, however, it is even more crucial that they convey the desired marketing message. Corporate real estate executives indicated that EDA Web sites do not speak to their needs with respect to promoting a jurisdiction.

A Source of Site Selection Data

A second aspect of EDA Web sites pertains to their usage as an informational tool in providing a wide range of data for the benefit of corporate real estate executives. Once again, many EDA Web sites have effectively circumvented the use of printed materials, such as the traditional community economic development profile, by linking in to online databases. In this manner, corporate real estate executives benefit from immediate access to pertinent macroeconomic and microeconomic data as well as a wealth of statistics to inform the site selection process.

According to the ROI survey, 94% of economic development officers and 100% of corporate real estate executives were of the opinion that EDA Web sites play an important role as an informational tool. Once again, an overwhelming majority of respondents believed that the Internet constitutes a powerful mechanism for conveying data to be used in regional site selection.

By contrast, respondents were considerably less optimistic with regard to the effectiveness of EDA Web sites in an informational capacity. Approximately 46% of economic development officers and only 12% of corporate real estate executives felt that existing EDA Web sites are effective in providing regional data for site selection purposes. Furthermore, 5% of economic development officers and 47% of corporate real estate executives believed that EDA Web sites are generally ineffective as an informational tool.

It has become relatively commonplace for EDA Web sites to host a wide range of data for consumption by prospective investors and site selectors. However, corporate real estate executives frequently stated that the data offered by EDA Web sites is usually incomplete, out of date, or irrelevant from a business perspective. As such, the most effective EDA Web sites, from an informational perspective, are those that provide concrete answers to the most frequent and pressing questions arising from the site selection process.

Providing Access to Key Contacts

EDA Web sites are also being employed as a directory tool to provide corporate real estate executives with a comprehensive list of key contacts within the economic development agency and its jurisdiction. In this manner, Web sites can offer a comprehensive listing of individuals with specialist expertise in the site selection process such as utility managers, local government officials, consultants and other service providers. The ultimate benefit for corporate real estate executives is a "one-stop shopping" approach to business location, allowing them to go directly to the source for any enquiries.

According to the ROI survey, 86% of economic development officers and 100% of corporate real estate executives believed that EDA Web sites are important directory tools. Both groups of respondents believed that an EDA's Internet presence represents an excellent avenue for facilitating introductions between economic development officers and prospective investors.

On the other hand, both segments were also in agreement that EDA Web sites are generally not fulfilling their goals in this regard. Roughly 37% of economic development officers and only 6% of corporate real estate executives were of the opinion that existing EDA Web sites are effective in providing contact information for key individuals in the region. A further 26% of economic development officers and 47% of corporate real estate executives indicated that EDA Web sites are generally ineffective as a directory tool.

One of the most important considerations in developing a viable Internet presence is that a Web site should serve as a funnel for lead generation and business development. Yet corporate real estate executives clearly stated that EDA Web sites were of little to no use in this regard. Beyond their promotional and informational objectives, EDA Web sites should incite prospective investors to call for additional information. In so doing, the Web site must provide detailed contact information for key individuals rather than blindly forwarding e-mails to a nameless Web master or "info" mailbox.

Bridging the Gap

Both economic development officers and corporate real estate executives universally acknowledge that EDA Web sites play an important role in the site selection process. Some EDA Web sites are currently living up to the expectations of the site selection community. However, a significantly greater number are continuing to miss the mark with their Internet presence.

In order to improve the effectiveness of EDA Web sites, economic development officers must become better acquainted with the actual requirements of prospective investors and adjust their online offerings as a consequence. In addition, corporate real estate executives must become more vocal in conveying their particular requirements to their counterparts in economic development. Several EDAs are already bridging the gap with a wide range of innovative approaches that truly leverage the technological benefits of the Web. Certain agencies have strategically employed the Internet for highly focused promotional campaigns, spearheaded by video testimonials by influential leaders in the local business community.

Other EDAs have engaged in revolutionary initiatives to augment the quality of information, such as the hosting of real-time, online databases derived from a GIS mapping of current real estate inventories. Finally, a number of economic development agencies have attempted to improve the customer focus of their Web sites by offering online support to prospective investors through chat room and "Webinar" features.

The Internet is destined to play an increasingly vital role in the site selection process. If EDAs continue improving their ability to serve the requirements of the site selection community, one should only expect to see an increasing number of highly inventive Web strategies put forward. Ultimately, the possibilities are only limited by time, resources and creativity.

Howard R. Silverman is President & CEO of CAI Corporate Affairs International, an innovative consulting firm that specializes in the facilitation of corporate investment projects throughout North America. CAI's primary goal is to assist its private and public sector clients with the retention, expansion and relocation of corporate mandates. Mr. Silverman may be contacted by phone at (514) 982-0095 or by e-mail at h.silverman@caiglobal.com.

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