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.
It’s hard to believe, but a year has passed since YP officially announced its launch as an independent company. The former AT&T Interactive and AT&T Advertising Solutions units broke off to form YP Holdings LLC on May 9, 2012, forming a new identity as North America’s largest local search, media and advertising company with more than $3 billion in annual revenues. YP is majority-owned by Cerberus Capital Management.
YP’s progress over the past year has been remarkable. Here are some notable highlights we’ve captured here on the blog along the way:
Last March, YP announced that it was the second largest company in the U.S. mobile advertising industry in 2012, with more than $350 million in revenue attributable to mobile, according to IDC. YP said its mobile apps referred nearly 100 million calls to local businesses in 2012, and that click-through rates on the company’s paid mobile listings grew by 100% over the year. YP also ranked among the top 40 mobile web domains in the U.S. by comScore.
Last February, YP appointed former AOL executive David Lebow as senior vice president and general manager of its newly created National Markets Group, based in New York. The new group was created to provide a dedicated focus on developing and activating digital solutions for national advertisers looking to generate local leads.
Last December, YP released its end-of-the-year Local Insights Digital Report, which showed 2.2 billion searches across YP’s online and mobile offerings in 2012. Local search volume via YP offerings continued to grow, with users making an average of 350,000 more local searches on a given day in 2012 than they did in 2011. YP searches via iPads were up 233% year-over-year, while searches on Android devices were up 205%.
Last September, YP announced that Jonathan Miller, one of the world’s most respected digital media executives, would become the company’s first announced Board member.
Last July, YP announced a new offering called Dynamic Store Locator. The feature, a part of its Local Mobile Display Network, allows local businesses to advertise to consumers within a specific radius of storefronts or given geo-fence. The program can potentially reach more than 100 million location-enabled smartphones in the U.S.
Last June, YP launched its “Gas Guru” mobile app, which helps users to find the closest and cheapest gas in their area.
Recently, YP CEO David Krantz spoke to MediaPost about his company’s print to digital transformation, efforts to ramp up in new markets where it doesn’t have a strong presence, activities to leverage growth in mobile, and approach to working with small businesses. The full interview can be found here.
Congratulations to everyone at YP on a great first year. We look forward to seeing what you have in store for year two!
You have probably seen much of the data showing the rapid growth of consumers that are using search engines, mobile phones and social media for local search. At the same time, there is an equal amount of data showing just how far behind local businesses are in their digital marketing efforts.
In my Street Fight article, I discuss the opportunities for marketers to help local businesses and consumers win with local search. I highlight business listings, social media and mobile websites as three areas of opportunity for marketers.
These days, our Facebook and Twitter newsfeeds provide us with updates from hundreds of our connections about everything from news headlines and restaurant check-ins to engagement announcements and vacation photos. Many of us spend time scrolling through all this buzz looking for information we actually care about.
I came across an interesting article about a new mobile app called Bonfyre, which is looking to better personalize the social media experience by enabling users to share relevant information with the people who actually care about specific topics. The app founders believe that major social networks are limiting in that connections become outdated over time and lose their value and relevance. Bonfyre works to improve the social media experience by creating pop-up networks that are timely, relevant and private to those participating.
The app is being aimed at both personal users and businesses:
Personal users are encouraged to sign up to create private networks to share updates, photos, links and also live chat with other members. Bonfyre says these private networks can replace messy e-mail chains between groups and cut down on newsfeed clutter on bigger networks.
For business use, Bonfyre is marketed as an events-based app where users at a sporting game, charity event, conference or concert can share relevant content with those in attendance (Brands like the St. Louis Rams are utilizing the app). Businesses can engage in the conversation and keep an eye on what they’re saying and sharing about them as well.
I think Bonfyre also presents an interesting opportunity for local businesses to share relevant content with their customers. For example, a local ice cream shop could launch a Bonfyre to share promotions on its latest flavors with its most loyal customers, or a fashion boutique could setup a Bonfyre to watch a red carpet event and comment on similar looks they sell in-store.
It appears that Bonfyre has attracted experienced innovators to their cause as Jim McKelvey, Co-Founder of mobile payment company Square is a member of the board.
Download Bonfyre on either iTunes or Google Play and let us know what potential you see for businesses to leverage this new type of social media experience.
In his discussion “Lost on the Map” at the Web 3.0 conference in Istanbul, Trevor Nadeau, managing director of Yellow Medya, discusses the problems local and multi-location businesses face due to their incorrect or missing business listings. From store locators with locations in the middle of the sea, to major brands missing in digital local search, Nadeau discusses what he describes as a “wake-up call” for the local search industry regarding the need for professionals to make sure local businesses can be found and found accurately. Here is the video of his presentation:
This week, Dex One and SuperMedia announced the completion of their merger, creating Dex Media, Inc.In a press release announcing the news, the combined company said it is one of the largest national providers of social, local and mobile marketing solutions through direct relationships with local businesses.
Dex Media, which will trade on the NASDAQ stock exchange under the symbol DXM, will be a powerful marketing services company with digital revenue approaching $500 million and a near national footprint. The new company will be headquartered in SuperMedia’s hometown of Dallas.
Former SuperMedia President and CEO Peter McDonald will serve in the same roles at Dex Media. He said, “Dex Media is positioned to help businesses across the country grow, with over 2,700 marketing consultants already advising approximately 665,000 local businesses across social, local and mobile media.”
As I’ve previously blogged, the creation of Dex Media represents an important and inevitable outcome of today’s changing local search landscape. Together, the combined company is better positioned to transform its business model across a national footprint, providing local businesses with the innovative local advertising solutions they need to attract new customers.
We congratulate our friends from Dex One and SuperMedia on this exciting news and wish them great success.
For more information, visit www.dexmedia.com or read the full press release here.
As mobile plays an increasingly central role in the local search experience, we need better insights into how consumers are using non-PC devices to find neighborhood business information so that local search marketers can leverage trends in the space.
I’m pleased to announce that today the Local Search Associationis releasing our new Local Mobile Search report, prepared by comScore, which looks at the evolving mobile environment in the U.S. and the growing role of smartphones, tablets and other connected devices in the local search experience, highlighting trends in online directory and IYP usage and demographics.
The report shows a continuing shift of mobile usage among consumers, signaling an opportunity for local businesses to re-evaluate where they devote their online ad spending. Most notably, traffic to online directories and other local resources from non-PC devices more than quadrupled in 2012, reaching 27% share of total web traffic in December 2012 from 6% share in December 2011. The percentage growth of page hits on online directories and other local resources from non-PC devices grew at more than double the 8% growth rate in total web traffic on non-PC devices in 2012.
The report also found that 48% of U.S. mobile users used their devices to access local content in December 2012, up from 42% in December 2011.
Internet Yellow Pages Accessed by Highly Desirable Mobile Users
The report found that Internet Yellow Pages (IYP) apps are a powerful tool for local businesses to reach ready-to-buy consumers, since they are used by a desirable demographic for local businesses looking to attract new customers:
More than half of all IYP app users (53%) are age 25-44.
IYP app users are 51% more likely to have an income greater than $100,000 versus all mobile phone users.
IYP app users are more prolific shoppers than average smartphone users. 41% of IYP users make at least one on-phone purchase per month, versus 19 percent of all smartphone users.
IYP app users spend considerably more in on-phone purchases than all smartphone users, with 10% of IYP app users spending a monthly average of more than $500 on on-phone purchases, versus 4% of all smartphone users.
As the market continues to evolve, IYP mobile apps represent an easy first-step for local businesses to expand their integrated advertising efforts into the mobile space.
Local Searchers Prefer Apps to Browser
As a growing number of consumers use mobile to access local content such as business directories, classified ads, maps, and movie information, they are showing a preference for applications over browsers.
Approximately 77 million smartphone owners relied on applications to visit local content in December 2012, up 22 percent since December 2011.
About 69 million users relied on browsers in December 2012, up 12 percent since December 2011.
Nonetheless, strong usage and growth in browsers demonstrates that both platforms require our attention and investment.
Online Traffic Patterns Rapidly Changing
The report shows that rapid growth of connected devices is drastically changing how consumers access the Internet. In 2012, growth in the number of PC users accessing the Internet flat-lined for the first time. By contrast, the share of web traffic from non-PC devices including smartphones and tablets more than doubled to 15% in December 2012 versus 7% in December 2011.
The number of non-PC devices is also growing rapidly. More than one in three (37.3%) of all U.S. smartphone users also owned other connected devices at the end of 2012, including tablets (28.8%), eReaders (10.0%) and other handhelds like portable gaming devices (4.1%), providing consumers with additional ways to access the Internet.
Key Takeaways
Our report demonstrates that the media landscape is continuing to diversify as more consumers begin using smartphones, tablets and other connected devices in their daily lives. In response, local businesses should increasingly pursue mobile solutions as part of their integrated local advertising strategy, whether it’s introducing a smartphone and tablet-friendly website, or taking advantage of IYP mobile apps.
Last month at our annual conference, “Search Starts Here,” we were fortunate to hear from local search marketing leaders from the U.S., Canada and 12 other countries about the numerous opportunities and challenges facing our industry, ranging from the growing importance of original digital content to the rise of mobile and social media.
Following our annual conference last month, “Search Starts Here,” – where we heard from local search marketing leaders from around the globe – many of you have asked us how best to stay up-to-date on the latest trends in our space throughout the year.
In addition to checking back here on Local Search Insider for industry and member news, research and other relevant topics, we encourage you to take a look at some of our favorite go-to news resources. These blogs deliver high quality news and research on local mobile, online and print marketing.
Be sure to add these to your reading list!
NetNewsCheckcovers local media’s transformation from traditional to mobile/online and informs industry leaders of business developments.
StreetFightfocuses on local content, commerce and technology, and delivering stories ranging from the latest trends to new research.
BIA/Kelsey: Local Media Watch highlights industry trends, case studies, and events throughout the year. Also check in for BIA/Kelsey’s signature research.
Screenwerk, by Greg Sterling, covers online and offline media trends – and everything in-between.
We recently uploaded two webinar presentations to our YouTube channel that you might find interesting.
WebsiteAlive’s webinar discussed the importance of giving consumers the means to easily connect with local businesses via directory listings using live chat, e-mail lead, click-to-call or text/SMS.
Connect Now! – Connect and Capture Your Target Audience
geo.to’s webinar discussed the phenomenal increase in mobile local search, the primary wants and needs of mobile users, and the data that is reinforcing the importance of providing instant access to extremely accurate and timely location based information.
Mobilizing Locations to Drive and Measure Calls, Visits and Sales
For access to all of our past webinars and a look at what’s to come, visit http://bit.ly/LSAwebinars.
Earlier this week, Los Angeles Times reporter Sandy Banks took a close look at the online review space. Spurred by a window sign at a local LA restaurant calling for a boycott of Yelp, Banks explored the accuracy and fairness of online reviews.
According to Bank’s coverage, online review companies like Yelp are receiving backlash from small business owners who don’t understand current methods that allow some user reviews to post, but hide others deemed as false reviews. Owners are concerned that authentic, positive reviews are being hidden, causing an inaccurate or unfair snapshot of their business online.
With more digital companies expanding into the review space (Foursquare, Facebook, and Google to name a few), review filtering is certain to be a hot button issue for small businesses. Since its inception, Yelp has worked hard to strike the balance between an egalitarian, crowd-sourced approach while still cracking down on false reviews. There doesn’t seem to be a quick fix.
Follow these links for the Los Angeles Times stories and tell us your thoughts on this issue in the comments section below.
Please join LSA and WebsiteAlive for an exclusive webinar presentation this upcoming Thursday, April 25.
In this webinar, WebsiteAlive’s Managing Partner and CEO Adam J. Stass will discuss the importance of giving consumers the means to easily connect with local businesses via directory listings. Adam will discuss ConnectNow!, a solution that is intended to quickly connect consumers to companies via live chat, e-mail lead, click-to-call or text/SMS.
WebsiteAlive is a software developer and online communications provider. Since 2004, their live chat and click-to-call solutions have been used to meet and greet website visitors, answer questions, increase leads and close sales. Used by more than 11,000 web and mobile sites, WebsiteAlive’s solutions support Internet-based small, medium and large businesses and organizations.
In today’s increasingly digital world, print directories still play an integral role in a comprehensive local media strategy, according to our expert panel.
Emil Morales, senior vice president at TNS and panel moderator, kicked off the session by showcasing TNS study results indicating print Yellow Pages extends the reach of other local media. The data show consumers use print Yellow Pages in conjunction with all other types of local media prior to and following the decision to buy – a clear opportunity for our industry to bundle print and digital products.
“There’s a lot of great news to share about the print Yellow Pages story,” according to Matt Centofanti, director National Marketing at YP. “[Print] is not dying on schedule.”
Matt discussed the strong volume of call counts and the high return on investment advertisers receive from print directories. Matt said ROI for print ads is 13:1 and that call volumes are up 8% year-over-year, generating 35% more calls for existing customers, according to CRM Associates’ latest study.
Matt also talked about the significance of knowing your ideal customer, stressing that formany traditional Yellow Pages categories with desirable demographics like baby boomers and seniors, print Yellow Pages is still driving leads.
Eric Webb, president of Marquette Group, focused on the importance of “a print and” strategy, noting that advertisers should consider print along with other media options. Eric said demonstrating media value based on population alone is insufficient given that deeper demographic variations may exist among markets.
Dave Wolf, managing partner at Linkmedia 360, said the challenge facing print is the fragmented media environment with numerous competing products and platforms available for advertisers to reach consumers. Dave talked about opportunities to supplement a digital advertising plan with print Yellow Pages rather than print being the primary medium.
In our closing session for this year’s conference, Dan Levy, director of small business at Facebook, sat down with Greg Sterling.
Dan talked about the importance of local search at Facebook, saying there are 15 million small businesses who have pages on Facebook. Users are responding. There are 645 million page views in U.S. of local pages in the average week, and 70 percent of users in North America are connected to at least one local business.
Dan counseled small businesses to use the free product, Facebook Pages, to create a presence and begin interacting with customers.
For those businesses that want to go beyond Pages, Dan said there are two main options. “We’ve built a number of ad products that work from the biggest brands in the world to the local small businesses.”
The first is a way of targeting and reaching customers that you aren’t connected with, with targeting based on the geography, age, demographics, male/female, kids, interests. The second is a sponsored story by taking the things your customers are already saying or already doing and promoting it.
Dan said tools like Facebook Offers, Facebook Nearby, Graph Search, and Facebook Home on Android will continue to help small businesses engage with customers. And he said that Facebook isn’t really a new approach to marketing – it’s rooted simply in how businesses and customers have interacted for years.
“We hear small businesses say ‘We are trying to grow our business … we are trying to find new customers.’ We know that businesses, since the beginning of time, have relied on word of mouth to drive sales. That’s what we’re trying to do – provide them with a word of mouth megaphone.”
“The first thing I’d be doing is talking to your small businesses about what actually has always worked in their business. A lot of people think about social media as a new property. We don’t think about it that way at all. Ask them what’s worked in the past. If it’s coupons, maybe you should do Offers. At a minimum, set up a Page.”
In terms of measurement, Dan said that businesses need to think beyond clicks and that measurement doesn’t have to be complicated.
“We sometimes forget the simple things you can do. Just ask customers when they come in ‘how did you hear about us?’ That can be more useful sometimes than doing a big study.”
Greg asked Dan about Facebook’s interest in potential partnerships, and Dan indicated the field was open to find an approach.
“We have not worked very well historically with partners. Almost all the Pages have been dome by small businesses themselves or perhaps a small agency. We think that’s a big opportunity … So to the extent that there’s partners that have reach, relevance, and have relationships with the small businesses, we’d love to work with them.”
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