Earlier this week, I had the pleasure of traveling to Berlin to attend the European Association of Search and Database Publishing‘s (EASDP) conference. In addition to meeting with our European colleagues and hearing about the latest happenings in their market, I provided an update on the state of our industry in North America within a panel discussion about current trends in regions around the world.
My presentation focused on how the very definition of our “industry” in North America is different than when I spoke at EASDP’s conference less than two years ago.
As evidenced by the conversations we had at our annual conference in April and recently released LSA research, I discussed how we’re experiencing a transformation where offline is going digital, digital is going local and local is going mobile. Today, our members either are or are considering just about every local media and form of commerce. I proposed that our efforts are creating an entirely new space called “local commerce.”
This space, which BIA/Kelsey estimates will represent a $140 billion opportunity in the U.S. by 2015, is comprised of many players. They range from print and online media publishers and search engines, to digital agencies, reputation management providers, website design and hosting providers, daily deals providers, vertical sites, ad networks and exchanges, e-commerce players – and the lengthy list of suppliers of goods and services to this vast market.
I highlighted three major shifts that we’re seeing in our increasingly complex market.
The first is the rapid growth of mobile devices and mobile local search, which LSA explored recently in our Local Mobile Search Report compiled by comScore. The second is changes in the composition of our business base as SMBs struggle to compete with national and regional chains in part because of their slower adoption of digital media. The third is the growing number of media publishers and agencies calling on local and regional firms, often selling a similar suite of digital services.
I noted that our members are doing things differently in order to overcome these changing circumstances, beginning with simplifying processes— especially for salespeople and their clients.
I overviewed some of the “channel experimentation” taking place; the development of new types of sales teams and retraining; the creation of new self-service, do-it-yourself offerings; and the emergence of e-commerce solutions as product line extensions to lead generating products
I also discussed some examples of innovative marketing and pricing, notably product bundling and cost-per-action activity, as well as more aggressive use of partnerships, particularly around content. I also highlighted the bottom line challenge our industry faces; growing the customer base, increasing the average spend per advertiser – or “share of wallet” – while providing the service levels necessary for customer retention cost-effectively.
At the conclusion of my remarks, I made a prediction that one or a handful of our members will emerge as leaders in this local commerce market – because we deliver a large volume of leads that have high conversion to actions, because SMBs will increasingly look to trusted partners for assistance with lead generation and e commerce solutions as the market fragments and the broad media trends towards mobile and local play towards our member’s strengths.
I believe my remarks were well received by the audience, which was eager to learn about the North American experience. In the coming days, I will share my key takeaways from EASDP’s conference regarding the state of the European market.
In my Street Fight article, I discuss the advantages SMBs have over national brands when it comes to social marketing and how they can leverage their “local” knowledge to build fans, follow leads, offer discounts and improve their reputation.
With the advent of social media tools, SMBs now have a great opportunity to compete with national brands in their local communications. On social media, national brands must manage thousands of local pages or even just one page with sometimes over a million followers and it isn’t easy. The flexibility, and local positioning of SMBs make them better suited for this kind of local engagement.
Pew’s Internet and American Life Project recently released its latest study on smartphone ownership in the U.S., which for the first time found that the majority of American adults now own a smartphone.
Since the survey’s inception in 2011, there has been a huge jump in smartphone ownership. In May 2011, just 35% of U.S. adults reported smartphone ownership. Just two years later, 56% report ownership.
While every demographic group experienced “significant year-to-year growth in smartphone ownership between 2012 and 2013,” seniors – those 65 and older – still exhibit low levels of smartphone adoption.
Another interesting variance in smartphone ownership involves income levels. While growth in ownership is shown across income levels, the results are varied across different age groups within these income levels.
“Younger adults—regardless of income level—are very likely to be smartphone owners. Conversely, for older adults smartphone ownership is more of an “elite” phenomenon: smartphones tend to be quite prevalent at the upper end of the income distribution but much less common among those with lower income levels.”
The Pew Internet and American Life Project’s findings mirror the trends we saw in our recent Local Mobile Search Report, which found a continuing shift towards mobile usage among consumers. These changes in consumer behavior signal a clear need and opportunity for local businesses to re-evaluate where they devote their online spending.
The local search space has been abuzz about the numerous changes that Foursquare has made so far in 2013, and we can add this latest update to the list!
According to Ad Age, Foursquare is testing a pilot program for a handful of New York City small businesses that allows them to promote their individual Foursquare listings and content within its mobile app.
Previously, small businesses on Foursquare could only promote themselves by offering discounts or deals to customers when they check in. Now these select NYC businesses can attract nearby customers by promoting a photo of their product, a good user review, or simply their listing.
This is Foursquare’s first program to generate revenue from small business. It will be interesting to see if it grows to cities beyond New York and if small businesses – and consumers – latch on.
Matt Krug from hibu and I are at the Association of Oregon Recyclers conference to promote the industry and highlight the environmental and sustainability initiatives of our LSA members. Earlier this year, a bill was introduced in the state of Oregon that would have created an opt-in registry for phone books and imposed penalties for violations. The bill did not end up moving after engagement by LSA, but it certainly points to the importance of getting the word out about our industry’s self-regulatory efforts in this state. We’ve met officials from across Oregon, including Portland, and are promoting the value our members bring to local communities as well our consumer choice and sustainability initiatives.
LSA’s VP of Public Affairs Wesley Young (left) and hibu’s Environmental Relations Manager Matt Krug at the Association of Oregon Recyclers (AOR) conference.
Please join LSA and Burke, Inc. for a members-only webinar presentation next Thursday, June 13 from 2 pm – 3 pm EST.
In this webinar Natalie Wuchenich, Director of Research at the LSA, and Stacy McWhorter, Sr. VP Client Services with Burke, Inc. will present results from the 2012 Local Media Tracking Study. The study is based on interviews with over 8,000 U.S. consumers and tracks usage of Print and Internet Yellow Pages, search engines, social media, coupons and other local media sources. Burke has conducted the Local Media Tracking Study for LSA since 2009.
The Local Search Association is the largest trade organization of print, digital, mobile and social media companies that help local businesses get found and selected by ready-to-buy consumers. Association members include U.S. and international Yellow Pages companies, search engine marketers, online listings and review sites, digital advertising agencies, mobile search providers and more. The Association has members in 29 countries.
According to Borrell Associates, by 2017 mobile advertising spend is expected to nearly triple and social media advertising spend is expected to quadruple. But there is no reason for local media to wait around until 2017 to get in the social and mobile game. Today, advertisers big and small are asking for mobile and social solutions, and they are ready to make the dive into these evolving technologies.
To help bring some clarity and direction to local media companies trying to figure out how to utilize social and mobile to grow their business, the Local Search Association, Borrell Associates and the Local Media Association have all partnered to present the “Social + Mobile – Show Me the Money!” conference, August 21-22 in Chicago.
Gordon Borrell, CEO of Borrell Associates, will be kicking off the conference with a fascinating look at how the entire advertising industry has morphed over the past 100 years into a complex labyrinth of marketing venues and formats that leaves most SMBs’ heads spinning. By the second decade of the 21st century, Gordon says that the average person is exposed to as many as 5,000 marketing messages a day — yet only six are noticed. “How do you break through the noise to become one of those six? I think the answer will surprise a lot of people,” he said.
Mobile and social media has only made things more complex for local media. “But in complexity comes opportunity,” Gordon said. ”We’re sitting on some incredible research that shows exactly what that opportunity is, and the two or three things that local media companies need to do to tweak their strategies to capture that opportunity.”
Gordon’s presentation will pinpoint key growth opportunities in the social and mobile space. He’ll also identify the companies doing the best job of seizing market share and what products and services they’re selling.
It will be a real treat hearing from Gordon considering his expertise and status as one of the media industry’s leading analysts. He is ranked in the top 2% among Gerson Lehrman Group’s 150,000 consultants worldwide and is quoted frequently in The Wall Street Journal, The New York Times, Ad Age, Forbes and other publications. He has appeared on CNN and other TV and radio programs discussing trends and forecasts for local media.
Check out the full agenda for SoMoConf and REGISTER by Friday, June 7 to take advantage of the early-bird rate ($100 off) plus an extra $100 off with the coupon code “Save100.” On behalf of LSA, LMA and Borrell Associates, we look forward to seeing you there!
We recently uploaded two interesting webinar presentations that took place in May to our YouTube channel. Check them out:
Outside of search engines, Kenshoo Local’s webinar looked at all the viable sources of local search traffic that are emerging for local businesses and how they can be used to maximize exposure to customers.
Searching Beyond the Engines
VendAsta’s webinar discussed how publishers and agencies can offer profitable, scalable and sellable social products that get leads and build fans for local businesses.
Selling Social to Local Businesses: What Do They Need and How Do You Scale It
For access to all of our past webinars and a look at what’s to come, visit http://bit.ly/LSAwebinars.
As we head into summer, our friends at Keep America Beautiful are encouraging supporters across the country to de-cluttering for summer by following a few tips.
One of the tips offered is for those who don’t want print Yellow Pages directories to limit or stop delivery at www.YellowPagesOptOut.com. For those who do want Yellow Pages, the group asks supporters to recycle their old books when new editions arrive (Yellow Pages are 100% recyclable).
This year, Keep American Beautiful is celebrating America Recycles Day on November 15th, so be sure to mark your calendars! We were proud to partner with KAB last year on their important day, and look forward to doing so again this year.
Find out more about Keep America Beautiful and America Recycles Day at www.kab.org.
One small business owner is calling for Facebook fan engagement to remain an even playing field, and she’s not alone. A change.org petition from a New Jersey business owner has made the Internet rounds over the past few weeks and attracted 500 supporters in just a few days.
The petitioner writes:
“All of the changes Facebook has made in the last 2 weeks REALLY, REALLY effects people with small businesses. Now our posts are seen by virtually no one except very, very devoted fans and family. I understand not “everyone” is going to see our posts, but this is outrageous. I have over 12,000 fans and I’m lucky to have a few hundred see our post”
Other business owners agree, and have shared comments on the site voicing their concerns.
Many small businesses that can’t afford paid advertising focus instead on organic marketing through engagement on Facebook. They feel that updates to Facebook’s newsfeed algorithm, which now includes paid posts from bigger advertisers, puts them at an unfair advantage.
There is only so much room on a newsfeed, and many small businesses think their posts are now going unseen by the followers they’ve worked to secure because they can’t afford to pay.
A Facebook rep told Huffington Post that the social network is aware of small businesses’ financial limitations and that the company offers both paid and organic posts.
What do you think? With all the new changes to Facebook is organic marketing still a viable option on the platform? We’d love to hear your thoughts in the comments section below.
The vast majority of SMBs today are struggling to develop a site that can easily be found in search and that provides the information, engagement and trust that consumers are looking for. The result presents potential missed opportunities for SMBs to attract quality leads from the digital and mobile sources where consumers are increasingly searching for local business information.
Given the popularity of online shopping, it has been thought that brick and mortar retailers are increasingly becoming more like product “showrooms” than places for commerce. But with a new study from Telmetrics and xAd that said 77% of smartphone retail shoppers ultimately made their purchases in-store, the “showrooming” trend does not seem as detrimental to the retail industry as originally thought.
The study, which was conducted by Nielsen, found that only 6 percent of smartphone users actually conducted their most recent mobile retail search in a physical store. In addition, 57 percent of smartphone users expect retailers to be within five miles of their location and the majority of tablet users (21 percent) sought coupons/offers with their device. The low percentage using mobile devices to search in-store and the high percentage seeking location and coupons suggests that the majority of mobile usage is actually taking place at the beginning of the purchase cycle.
In addition, the study found that the majority of mobile retail shoppers are ready to buy, with 55 percent ultimately making a purchase. Similarly, 30 percent of smartphone users and 25 percent of tablet users intended to make a purchase within an hour.
Given the data, retailers looking to combat “showrooming” by matching online prices or cutting off access to in-store Wi-Fi should instead be focused on gaining share of the ready-to-buy consumers that are conducting retail research on their mobile devices.
For more information, check out the official press release. Also, below is a great infographic courtesy of Telmetrics and xAd that highlights the mobile path-to-purchase for the retail industry.
We are very excited to announce that we are partnering with two progressive media organizations, the Local Media Association and Borrell Associates, to host one powerful conference. Join us in Chicago on August 21-22 for Social + Mobile – Show Me the Money!
There is a ton of data and research that shows just how big of an impact social and mobile is having on the local media and search space. Here are just a few stats worth noting:
Of 1,000 SMBs surveyed, 97 percent are using social media channels for their marketing efforts (Constant Contact)
77 million smartphone owners relied on apps to visit local content in December 2012 (Local Search Association)
Facebook app is used more for local business searches than MapQuest, Apple Maps and Bing’s app (comScore-15 Miles-Neustar)
In light of the impact of social and mobile on local media and search, you should join us at this exciting conference as we dive into the dollars and cents behind this recent shift in the industry. Come learn about:
What’s working in social and mobile.
What’s generating revenue and ROI.
What the most promising business models look like.
The full agenda is now available and includes content from leaders with Internet pure plays, TV, radio, newspapers, directory publishers and more. Members and clients of all organizations receive $200 off the registration price. Register here. Also, an exclusive hotel rate has been secured for all conference attendees, but it expires on June 30th. To take advantage of the rate, click here.
Two of the biggest digital food-delivery platforms just announced plans to merge into one. Seamless and GrubHub connect users to local restaurants through online and mobile listings on their websites as well as apps. They both have rating functions and sorting options to help local searchers find restaurants that deliver and place orders.
GrubHub CEO Matt Maloney told Bloomberg, “This has nothing to do with cost savings; it has everything to do with increasing growth.” By combining efforts and resources, the two companies hope to accelerate the addition of both users and restaurants.
Seamless and GrubHub say smartphone and tablet apps are helping to drive rapid growth in online food orders. About 30% of GrubHub’s orders come from mobile while more than 40% of Seamless orders come from mobile. Combined, the two companies processed about $875 million in orders across all platforms in 2012 alone.
Bloomberg points out a new trend of consolidation among vertical starts-ups, likely in an effort to better position themselves against local search giants like Yelp and Google.
Let us know what you think of the merger in the comments section below.
While a large portion of traffic still comes from search engines, today’s technology landscape has seen many other viable sources of traffic emerge. Mobile applications, online directories, and regional websites offer opportunity for not only organic traffic, but also paid advertising. During this webinar, learn how local businesses are taking advantage of both sides of this market to maximize exposure to customers. See and hear how CityGrid and Kenshoo Local have partnered to offer a scalable, cost effective local marketing solution that fits side-by-side with paid search efforts.
Kenshoo Local is a digital marketing software solution designed specifically for organizations managing high volumes of locations, stores, small businesses, dealers, franchises, or other entities. From onboarding and development to optimization and reporting, Kenshoo Local makes it easy to mass-manage hundreds or thousands of search engine marketing campaigns and local listings at scale. Multi-presence advertisers, SMB marketing providers, technology platforms, agencies, and publishers use Kenshoo Local to automate their programs and improve performance. Kenshoo Local is an operating unit of Kenshoo, a global leader in premium digital marketing technology directing more than $25 billion in annual sales revenue for clients such as Deluxe, Geary LSF, Havas Media, Haystak Digital Marketing, OMD, Performics, Possible, Resolution Media, Sears, SIM Partners, Starcom MediaVest Group, Tesco, Walgreens, and Xcite Media Group.
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