Even local firms can benefit from a search-engine strategy. “With local search, which is available now on the major search engines, it’s possible to have your ads show up only for people who log on in your area,” says Wetzler. “The search engines can figure out geography based on an IP address, so that a local interior designer in Cincinnati won’t be paying for useless clicks from Los Angeles or Japan.”

From 2003 to 2004—when Downs began paid-search marketing in earnest—sales rose 55% and earnings soared 82%. Downs estimates that every $1 spent on paid search yields $14 in revenue.