New LSA Research & LSA 15 Conference Preview

April 2, 2015

About me •  Local Search Association, Search Engine Land•  Impact of digital media on offline consumer

behavior•  Search, local, mobile, social + indoor location•  Twitter: @gsterling

About me

You  must  unlearn  what  you  have  learned  

Proselytizing about local

E-­‐commerce  Local:  DigitalàOffline  

The big-picture numbers

•  US GDP (2014): nearly $18 Trillion•  70% of economy = consumer spending (most within 15 - 20 miles) •  93% of retail spending offline; e-commerce (2014): roughly $304 billion •  Roughly 80% of internet users do online research before buying offline

Source: US Commerce Department, US Bureau of Economic Analysis (2014); Opus Research, E-tailing Group (2012 – 2014)

A Brief Word about the New LSA

Most  important  areas  of  focus  (scores  of  5)  

3%  5%  8%  8%  10%  13%  14%  15%  

23%  24%  26%  28%  30%  32%  

40%  41%  

49%  

Wearables  Consumer  privacy  issues  

Internet  of  things/connected  home  Connected  car  

Indoor  locaFon  and  markeFng  Legal  or  regulatory  issues  that  pertain  to  the  

ProgrammaFc/RTB  adverFsing  Comparisons  or  evaluaFons  of  technology  

OrganizaFonal  or  sales  transformaFon  Display  and  video  adverFsing  Market  sizing  and  forecasts  

Paid  search  Small  business  adverFsing  

Social  media  MarkeFng  to  naFonal  dealers/franchises  

Mobile  markeFng  AnalyFcs,  ad  tracking  and  aTribuFon  

Source:  LSA  Member  &  Non  Member  Survey  –  July  15,  2014  

What members want from LSA

Helping the market understand

• Why location is critical to consumers, brands, marketers and merchants

• How much money is being spent and is at stake

• Why digital-influenced offline commerce is a much bigger deal than e-commerce

• Key location technologies

• Why location is “foundational” to the mobile future

LSA Insights Data-Driven Reports Consulting & Custom Research

Webinars Co-op Data & Services Conferences & Events

Serving the local ecosystem

New LSA Insights research portal

Campaign performance data by: •  Search •  Social •  Mobile •  Video •  IYP •  Print YP

By market and category

Migration to Mobile

75%Source: comScore, February 2015

•  Roughly  190M  people  today  •  By  end  of  2015  in  excess  of  80%  •  90%  by  end  of  2016  

Smartphones reaching saturation

#1Source: Flurry Analytics, comScore (Q3 2014)

More  daily  Jme  spent  now  on  mobile  devices  than  TV  

Mobile now “primary screen”

60%* 40%

*Apps claim majority of time (88%)

Source: comScore, Nielsen, September 2014

Digital media time

36% 64%

Source: StatCounter, March 2015

Traffic distribution in US

Usage, revenue migration

65%  of  search,  56%  of  ad  impressions  

88%  of  ad  revenue    

69%  of  ad  revenue,  745M  daily  mobile  users  

Source: public statements, filings, earnings releases (2015)

80%  of  usage  

50%  of  search  on  network  is  mobile  

40% – 50% 20%

Source: Google, Microsoft public statements (2012 – 2014)

Local-intent search

Local search query volumes (US)

Source: Calculation based on overall query volume data from comScore (2015)

Q4  2014  Local  Search  Queries      

Mobile overtakes PC for local lookups

Device  most  commonly  used  when  looking  for  local  informaFon  online  

Source: LSA research (2015), n=2,147 US adults

Source: LSA research (2015), n=2,147 US adults

When  looking  for  local  informaFon  on  your  mobile  device,  where  do  you  tend  to  be?  

How  oWen  do  you  use  your  smartphone  while  shopping?    

More “out and about” usage

36% 54% Mobile fanatics: intensifying usage

Source: LSA research (2015), n=2,147 US adults

smartphone  owners  who  conduct  less  than  10  searches  per  week  via  mobile  

smartphone  owners  who  conduct  more  than  10  searches  per  week  via  mobile  

Fanatics are younger, more affluent

Source: LSA research (2015), n=2,147 US adults

80%  of  “mobile  fanaFcs”  are  younger  than  43;  more  than  50%  make  at  least  $50K  per  year    

Mobile searches per week

Source:  Thrive  AnalyFcs,  “Local  Search  Report”  2014  &  2015.  *Some  numbers  may  not  total  100%  due  to  rounding.    

33%  

16%  27%  

48%  

64%  

24%  

25%  

23%  

25%  

22%  

19%  

24%  

23%  

11%  

7%  24%  35%  

26%  15%  

6%  

All  Age  Groups   Gen  Y    (18-­‐29)  

Gen  X    (30-­‐43)  

Young  Boomers  (44-­‐53)  

Older  Boomers  &  Seniors  (54+)  

Less  than  5   5-­‐10   10-­‐20   20+  

Source: LSA research (2015), n=2,147 US adults

Engaged  with  mobile  ads   Made  purchase  aWer  engaging  with  mobile  ad    

Fanatics more engaged, influenced by ads

80%  of  mobile  fanaJcs  made  purchase  aUer  mobile  ad  engagement;  43%  the  same  day  

27% 20%

23%

22%

19%

19%

12% 14%

6% 7%

15% 18%

SMARTPHONE TABLET

Longer than month/Wasn't looking Within the month

Within the week

Within day

Within hour

Immediately

How  Quickly  Looking  to  Complete  Most  Recent  Purchase  –  By  Device  

Smartphone  (n=2,070),  Tablet  (n=  1,409)  

Source:  Nielsen-­‐xAd-­‐Telmetrics  (2014)  Mobile  Path  to  Purchase  study    

Mobile users ready to buy

Local relevance improves ad performance

Mktrs Haven’t Kept Up

Noise, fragmentation a major problem

Source:  ScoT  Brinker,  Chief  MarTech  

National: saying right things, not doing them

Source:  Forrester,  Shop.org  (2015),  survey  of  60  naFonal  retailers    

Nearly  60%  of  respondent  retailers  said  apps  are  “not  a  key  component  of  their  mobile  strategy  to  consumers.”    32%  of  respondents  said  they  were  spending  less  than  $100K  on  mobile  development  and  68%  were  spending  less  than  $1  million  

Mobile a priority for some SMBs

Source:  Thrive  AnalyFcs,  “Local  Pulse  Survey”,  January  2015.    

SMB  Planned  Change  in  Media  Spend  Over  Next  12  Months  

Marketing $ spread across more channels

6  6.6  

7.2  

2013   2014   2015  

Source:  Thrive  AnalyFcs,  “Local  Pulse  Surveys”,  June  2013,  January  2014  &  2015.    

Avg.  number  of  media  types  currently  used  in  markeJng  efforts  

Newer SMBs more digital

27%  38%   46%   45%   43%   51%  

73%  62%   54%   55%   57%   49%  

Less  than  1  year   1-­‐3  years   3-­‐6  years   6-­‐10  years   10-­‐15  years   15+  years  

TradiFonal  Media   Digital  Media  

Source:  Thrive  AnalyFcs,  “Local  Pulse  Survey”,  January  2015.    

SMB  Media  Mix  by  Tenure  of  Business  

In fact, most SMBs not mobile-ready

• 60% have no strategy to market to mobile consumers

• 60% of SMBs don’t utilize tools to measure performance

Source:  Thrive  AnalyFcs,  “Local  Pulse  Survey”.  January  2015.    

Time, knowledge big challenges

40%  

37%  

33%  

21%   Not  Enough  Time  

Not  Enough  Knowledge  or  ExperFse  

Ad  Budget  Not  Large  Enough  

Not  Enough  Resources  to  Hire  Dedicated  Personnel  

Source:  Thrive  AnalyFcs,  “Local  Pulse  Survey”    January  2015.    

SMBs  Biggest  Challenges  with  Online/Digital  MarkeJng  

Local marketing providers falling short

25%  

30%  

45%  

55%  

60%  

Other  

Too  Many  Errors  Made  

Price  is  too  high  for  the  product/service  

Poor  Service  Levels  from  Providers  

Poor  Program  Results  

Reasons  for  not  being  saJsfied  with  current  media  providers  (Scores  0-­‐6).  

Source:  Thrive  AnalyFcs,  “Local  Pulse  Survey”.  January  2015.    

Conference: LSA 15

Great place to network

Every  corner  of  the  local  ecosystem  represented  

Effectively -- three events in one

•  SMB digital bootcamp (April 19)

•  Tactical workshops (April 20)

•  Main conference (April 21 - 22)

SMB Digital Bootcamp (April 19)

•  Day of intensive education for local businesses re digital

•  Topics: presence, search, social, mobile, email, strategy

•  Partners/speakers: GoDaddy, Google, Yelp, YP, Yahoo, Microsoft, Closely, G/O Digital, Goodzer, Constant Contact, ReachLocal, Buzzboard, MOZ, Search Influence, LocalSEO Guide, Where2GetIt

Tactical workshops (April 20)

•  CraWing  a  Compelling  Sales  Offering  for  Today's  More  Savvy  SMBs  •  Research:  Triggers  and  Causes  of  SMB  Churn    •  Sales  2.0:  Best  PracFces  (PresentaFons  &  Discussions)  •  ConducFng  a  Basic  SEO  Audit  (with  ATenFon  to  Easy  Wins  and  Scalable  Content  Strategy)    •  Major  Algorithmic  and  UI  Trends  at  Google  •  Selling  Mobile  to  Small  Businesses:  What’s  Working  Now?    •  New  Uses  of  LocaFon  for  Audience  TargeFng  and  Offline  ATribuFon      

•  TacFcal  •  PracFcal  •  Case  studies  •  Best  pracFces  

LSA 15 main conference (April 21-22) Topics:      

•  SMBs  •  Brands/NaFonal-­‐Local  •  Sales/retenFon    •  Mobile    •  ProgrammaFc  •  Commerce  •  Ad  CreaFve  •  Culture  change  

What’s  working,  what’s  not  –  and  why    

Highly  diverse  program  with  a  focus  on  transformaJon  and  innovaJon  

Key sessions

Hope to see you there: http://thelsa.org

•  Research:  Triggers  and  Causes  of  SMB  Churn  •  Serving  the  Small-­‐Budget  Marketer  •  Selling  Mobile  to  Small  Businesses:  What’s  Working  Now?  •  Major  Algorithmic  and  UI  Trends  at  Google:  What  They  Mean  •  How  Mobile  Commerce  Will  Change  Local    •  The  Art  of  Mobile  Ad  CreaFve  •  The  ProgrammaFc  Future:  Where  Does  Local  Fit?  •  The  Brand  PerspecFve  or  How  I  learned  to  Embrace  Chaos    •  Digital  Assistants  and  the  Future  of  Search  

Questions