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LSA15: State of the Association (Neg Norton)

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LSA15: State of the Association (Neg Norton)

  1. 1. State of the Association Neg Norton President, LSA
  2. 2. WHAT IS DRIVING LOCAL?
  3. 3. Today change is the only constant 400 Years of Print 48 Years 22 Years of Digital
  4. 4. PAYTECHNOLOGY Paper banknotes first appeared in CHINA during the In 1913, the U.S. Federal Reserve established the gold-backed dollar and in 1958 the first versions of AMEX and Visa were issued. IN 1997, MOBILE COMMERCE WAS FIRST INTRODUCED BY COCA-COLA There has been an explosion in changing technology from mobile payment apps and wireless, contactless payment over the past 10 years. Today mobile payments make up a $50 billion market that is expected to jump to $142 billion by 2019 800s 40% of consumers used a mobile payment application in the past year UP FROM 8 PERCENT IN 2013. PAPER MOBILE
  5. 5. A MOBILE WORLD 60% of consumers use mobile devices to find information on local products and services 52% are “on-the-go” Source: Local Search Association, “The Mobile Fanatics- How Mobile is Transforming Local Shopping,” 2015.
  6. 6. But also a local one 18% 35% 34% 13% 22% 38% 30% 10% Every time Often Sometimes Never 2014 2015 How often do you use your smartphone while shopping in malls, grocery or retail stores? +11% +9% 54% look for deals in store. 51% compare prices in store. 39% look at reviews in store. Source: Local Search Association, “The Mobile Fanatics- How Mobile is Transforming Local Shopping,” 2015.
  7. 7. Source: 1 Local Search Association, “The Mobile Fanatics- How Mobile is Transforming Local Shopping,” 2015. 2 Vision Critical 2013 review of internet/client data +6,000 consumer “interviews,” IBM survey 2014. 3 Thrive Analytics, 2014. 59% of consumers have been influenced by social media posts while shopping locally.2 70% of consumers will share location information if they get something of value in return like a deal/coupon.3 Mobile influences local purchasing decisions 55% of smartphone owners have tapped/clicked on mobile ads while searching for local products/services.1
  8. 8. Today, over half of every retail dollar spent is influenced by digital. ~54% of all U.S. retail sales will be influenced by digital media in 2015. Nearly, 30% of all U.S. retail sales will be influenced by mobile in 2015. $325 Billion* $1.5 Trillion* E-Commerce Sales Digital Influenced Sales $325 Billion* $1.5 Trillion* Source: *Forrester Research, “Web-influenced retail sales forecast” 2015.
  9. 9. Critical trends impacting local Mobile device usage and media time Mobile payments and digital wallets Connecting the digital and physical worlds Location goes indoors Location is the new cookie (for mobile targeting) Social media impact on consumer purchase behavior World of wearables Personal assistant: mobile successor to search Internet of things Operational and transactional services for SMBs Rise of resource sharing 1 2 3 4 5 6 7 8 9 10 11
  10. 10. WHY DOES LOCAL MATTER?
  11. 11. The impact of local on the US economy Small firms account for 63% of net jobs created. Source: United States Census Bureau SMBs (<500 employees) employ 56 Million people. Businesses with <20 employees employ 20 Million people. Represent a significant portion of private sector payrolls. 500 employees or less 48.5% 100 employees or less 34.5% 20 employees or less 17.9% The 781,794 franchised small businesses in the U.S. account for 40% of all retail sales and provide jobs for some 8 million people. The 24 million small businesses in America account for 54% of all U.S. sales.
  12. 12. Purchasing happens near home Roughly 70%of the nearly $18 trillion US GDP is driven by consumer spending that occurs within 20 miles of home or work. 69% of mobile consumers expect businesses to be within 5 miles or less of their location and approximately 10% expect businesses to be within 1 mile or less of their location Consumers will travel roughly 17 minutes to shop and purchase products.
  13. 13. Dollars spent on local marketing are expected to rise with significant increases in mobile & social.
  14. 14. Utilizing location technology & data will become more important Varied set of use cases, categories and industries that can benefit from indoor location: • Retail stores/malls • Entertainment venues, casinos, amusement parks • Airports • Stadiums and arenas • College campuses • Hotels • Hospitals • Museums • Others **Source: Macy’s Macy’s decided to roll out iBeacons in all its 4,000 locations
  15. 15. Targeting and performance will improve Source: Local Search Association, January 2015.
  16. 16. HOW LSA HELPS
  17. 17. LSA Insights LSA insights is the first third-party tool that provides broad campaign benchmarking capabilities across media types. It also offers the unique ability to drill down by industry vertical and market to assess ad performance. MONICA HOVP OF MARKETING, XAD If I had a tool like this two months ago, I would have change the way I pitched a few potential clients. I think we could have got them with some of this data you’ve shown me today. MYLES BERGH, VP CLIENT STRATEGY, MICHAELS WILDER AGENCY The team here at Linkmedia 360 has found LSA’s reports and insights to be extremely helpful in supporting our new business efforts and proving value across multiple media channels. RENAE DABNEY, SVP, LINKMEDIA 360 For too long, the local media rep hasn’t had all the necessary data to make a convincing argument to their prospect or customer as to which media to invest in. Now, with LSA Insights, the local media rep can build a more compelling case and help earn the trust that’s required to cement long term relationships. NEAL POLACHEK, INDUSTRY ADVISOR, BUZZBOARD
  18. 18. Keyword Searches within Tax Preparation Heading
  19. 19. Co-Op This sale would not have happened, but for the Co-Op dollars available to the customer. A San Francisco consultant utilized a paint brand of Co-Op to sell a $11K YP Direct Mail program. This sale would not have occurred without Co-Op. A YP Media Consultant in PA used Co-Op to prospect new accounts. After finding a comic brand that Co-Op’d, he contacted brand retailers and one of them purchased an Enhanced Mobile Targeted using his Co-Op funds.
  20. 20. Total bills reviewed in 2014: 6000+ publisher liability EPR advertising regulation privacy sales tax on marketing services location tracking AD EXPENSE DEDUCTIBILITY optout DISTRIBUTION PUBLIC POLICY
  21. 21. Research program Q1 Research  Topline Local Media Tracking Study Report  25 Mobile Heading reports from LSA  Top PYP & IYP Heading Report  Local Media Tracking Study Annual Review Report  Local Media Tracking Study Pocket Piece  183 PYP/IYP Heading Reports  Mobile Fanatics Report  SMB report  Comscore MobiLens and TabLens reports Q2 Research Scheduled  Benchmarking Survey Refinement  ISS Reports to Review (183)  Last Mile Advertising Heat Maps  9 Point Heading Reports (255)  LSA Insights Trend Analysis  SMB Business Segment Report  Consumer Report on Cross Media Usage Patterns
  22. 22. SMB trends Only 35%can accept mobile payments. 40% 37% 33% 21% Not Enough Time Not Enough Knowledge or Expertise Ad Budget Not Large Enough Not Enough Resources to Hire Dedicated Personnel SMBs Biggest Challenges with Online/Digital Marketing 56% stated they update their websites every six months or longer. Percentage of SMBs with a Website by Business Size 60% have no strategy to market to mobile 60% of SMBs don’t utilize tools to measure performance or help them manage their business. 66% don’t have a way to capture online reviews. 60% stated they have websites that aren’t optimized for mobile. 55% of social media pages are updated monthly or longer. 65% of business listings are updated quarterly or longer.
  23. 23. Current providers are 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 satisfied with current media providers (Scores 0-6). Source: Thrive Analytics, “Local Pulse Survey”. January 2015.
  24. 24. What providers can start & stop doing WHAT CAN PROVIDERS START DOING TO BETTER SERVE SMBS WHAT CAN PROVIDERS STOP DOING TO BETTER SERVE SMBS Source: Thrive Analytics, “Local Pulse Survey”, January 2014. N= 1,008 Small Businesses; Open-ended question used text analytics to create word cloud of top responses.
  25. 25. ad to action AWARDS Anne Mercogliano Head of SMB Marketing, Twitter Christian Ward EVP, Partnerships, Yext Janet Disbrow Vice President, National Sales, YP Jeff Fagel CMO, G/O Digital Lutz Finger Author of "Ask, Measure, Learn" & Director Data Science and Engineering, LinkedIn Jeff Glueck Chief Operating Officer, Foursquare Monica Ho Marketing, Infrastructure, xAd, Inc. Steven Jacobs Deputy Editor, Street Fight Shreya Kushari SVP, Search Marketing & Performance Media, DigtasLBi Duncan McCall CEO and Co- Founder, PlaceIQ David Mihm Director of Local Search Strategy, Moz Faith Murphy Director, Channel Management & Reseller Network, Yahoo Trevor Nadeau Managing Director – EMEA, BuzzBoard, Inc. Elise Neel Head of Sales, MapQuest Manish Patel CEO, Where 2 Get It Nathan Pettyjohn Founder & CEO, Aisle411 Shelby Reno Marketing Instructor & Former Director of Marketing & Communications, TWO MEN AND A TRUCK Sharon Rowlands CEO, ReachLocal Mike Vaccaro Chief Revenue Officer, Digitaria, a JWT Company
  26. 26. STATE OF THE ASSOCIATION
  27. 27. Growing and diverse membership 300+ members 33 new members already in 2015
  28. 28. LSA Board of Directors Ben Wood Director of Channel Sales Americas Google Sharon Sweeney Secretary/Treasurer President, Fairway Group Bill Dinan Chairman, LSA President, Telmetrics Inc.
  29. 29. LSA Board of Directors Andrea Cancro EVP and Managing Director Starcom MediaVest Group Bill Dinan President Telemetrics Inc. James V. Continenza Executive Chairman and Acting President and CEO The Berry Company George Hanna EVP, Chief Legal Officer & Board Secretary YP Holdings LLC Ben Wood Director of Channel Sales Americas Google Kevin Jasper CEO hibu US Jed Nachman SVP of Revenue Yelp Joe Walsh President and CEO Dex Media, Inc. Katy Hunter Senior Director of Partner & Channel Marketing Microsoft Michael Fordyce CEO NinthDecimal Norm Hagarty CEO and Managing Partner DAC Group Sharon Rowlands CEO ReachLocal Sharon Sweeney President Fairway Group Julien Billot President & CEO Yellow Pages Digital & Media Solutions Eric Webb President Marquette Group/USMotivation
  30. 30. State of LSA 2014 financial results: Net income of ($132,000) Reserve fund: $8.9 million 2015 budget anticipates revenues and expenses: $7.4 million
  31. 31. Thank you Contact me: 214-696-5768 (office) neg.norton@localsearchassociation.org @negnorton

Hinweis der Redaktion

  • Focus LSA always been on local.

    Clear--witnessing renewed interest in the space that is growing/changing at remarkable pace.
  • Change only constant these days

    Hubspot---simplified view history advertising

    Print. Pre-Digital. Digital

    Arguably--more substantive change--- last 20 years than the previous 400.

    Look how many today’s prominent online media properties began around turn century
  • We’re not the only ones growing/changing rapidly.

    Slide highlights key milestones in Pay Technology space.

    Included---analogous
  • Of course---the common denominator behind evolution is mobile.

    Research shows mobile use growing in the business of local faster than any other sector.

    Today 60% of consumers use mobile devices---local shopping.
  • Increasingly---

    On the go consumers using smartphones for in-store shopping.

    Over 50% compare prices in-store on their phones
  • Most importantly, mobile influences purchasing decisions.

    Stats from our Mobile Fanatics report ---released a few weeks ago.

    55% smartphone owners clicked on ads---searching local prods.
  • Today over half of every retail dollar spent is influenced by digital.
  • Mobile search and payments-- some of trends impacting local

    Others --- eye on

    “interesting times”

    Futurist speculated--- shift to mobile-- make local less important.

    If people can find anything, buy anything, from anywhere, why would local stores matter?

    Well, it turns out they do matter. A lot.
  • So why does local matter?

    Here’s why---
  • Stats on impact of local-- US Economy

    Busy slide—worth looking closely at.

    SMBs employ 56 million Americans

    Over 50% of retail sales ---small business

    Nearly 2/3 of jobs created

  • Consistent with that, most purchasing happens locally.

    70% of $18 trillion in US GDP---driven --consumer spending w/I 20 miles of home/work.
  • As you’d expect---

    Spending on advertising is likewise going local

    Stats from BIA/Kelsey

  • Today---

    Technology and data making that ad spend more efficient via

    contextually relevant & geo targeted advertising
  • And those capabilities only get better.

    Point here today ---our work is effective/necessary & getting better --- end result -- impact on health economy.

    But---

    As these services get better, expectations will rise.

    Expectations –all know---critical component of client retention.

    Frankly, our industry’s retention rates for digital advertising services not good enough.

    Yesterday’s workshop and tackle again.

    Board meeting---
  • So –all this---what does LSA do for you?

    Take a look---
  • One of our most exciting new initiatives is LSA Insights

    Media Planning/Performance Tool

    350k campaigns –Print, IYP, Search, Mobile. Adding Social+ Video campaign data shortly

    Here’s some feedback we’ve received thus far---
  • Example of keyword search report from Search module of LSA Insights for Tax Preparation

    It shows:

    Better have your campaigns ready to run by January when people searching for tax filing solutions

    We’d love to demo it for you here. 

    Jason Peaslee. 
  • Co-op not new, best ways to increase revenue + drive client satisfaction

    National brands subsidizing local buys

    Redeploy

    Quotes from two YP reps successfully used Co-op.

    Val

  • LSA remains active --public policy

    Reviewed over 6000 bills potentially impacting industry

    Successful in defending you in # areas-- highlighted slide

    Seen significant action in publisher liability area

    Where pub liable for content of ad they publish

    Affects anyone in the stream of delivering an ad---agencies, to web hosts to publishers

    Defeated these attempts ---even changed existing law imposed that liability

  • Research program—covers broader swath local media than before.

    Drive useful insights and help you sell more. Bill touched on this.

    Slide shows our plan for 1st two quarters---Lot here

    Recently conducted a study of the challenges facing SMBs.

    Here’s some nuggets from that work---
  • First ---SMBs struggle to keep up with the real time nature of digital advertising.

    And therefore adoption other supporting technology is slow

    Time and knowledge are the main challenges

    Opportunity slide ---all of us

  • Yet, as an industry, we have some catching up to do
  • Here’s things-- do to help. And things --- stop doing.
  • So---remains an exciting time in the industry

    Innovation abounds ---more important than ever.

    Later today---reveal winners—Ad to Action Awards

    Riff==90 entries from 70 companies. Promote the winners. Version –Shark Tank

    A list judging panel

    They gave of their own time to review these many entries

    So let’s all thank them for their contributions
  • Quickly now---State of your Association
  • Today, we have more than 300 members

    We added 33 new members since beginning of year

    Many here in audience today

    So welcome
  • Yesterday, our Board elected officers for the 2015-2016 term

  • Our board has grown more diverse over the past two years.

    Today that evolution continues---

    Pleased to announce two new additions—

    Jed Nachman (SVP-Revenue, Yelp) and Mike Fordyce, CEO Ninth Decimal
  • Also pleased to announce a new logo

    Reflects the evolution of LSA, the business of local, and the partnership we have with all our members – both offline and online.

    Roll-out the logo in our material and communications over next few weeks.

  • In closing

    Opportunity/responsibility support SMBs –business of local

    You make difference each day success of SMBs

    Support you in that work

    Thank you

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