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.
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.
Matt Krug from hibu and I are attending the Washington State Recycling Association (WSRA) conference in Stevenson, WA to promote the industry and highlight the environmental and sustainability initiatives of LSA members. We’ve had the opportunity to speak in front of hundreds of city and county waste management staff about our self regulatory efforts involving the opt-out site as well as meet individually with them at our booth. We’ve also developed some personal relationships and contacts with staff at cities across the state. These relationships should be valuable contacts for us in making sure our message gets heard and in keeping regulatory pressure off of the industry.
Here is Matt giving a quick pitch about the yellow page industry’s opt-out program to a large audience at the conference.
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:
In March, I had the privilege of presenting during a webinar titled “Recycling Niche Materials,” hosted by Keep America Beautiful (KAB). I presented alongside representatives from the plastic film recycling industry, Steel Recycling Institute and International Sleep Products Association. This was a great opportunity to show KAB’s audience the tremendous strides our industry has made in sustainability and consumer choice. Here is a video showing LSA’s portions of the webinar:
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.
Please join LSA and VendAsta Technologies for an exclusive webinar presentation next Thursday, May 9 from 2 pm – 3 pm EST.
In this webinar titled “Selling Social to Local Businesses: What Do They Need and How Do You Scale It,” VendAsta’s Alan Hunter-Willis, Strategic Business Development, will discuss social media’s role in local search. He will highlight the challenges small businesses face when going social, while showing how social can be used to get leads, build fans, and offer customer service. Finally, learn about VendAsta’s solutions that drive profitability, scalability, and sellable benefits for a publisher and/or agency’s social products.
VendAsta Technologies provides online reputation management, mobile site, and social marketing tools for IYP companies, newspaper groups, interactive agencies, CMRs, digital agencies, and national brands. Delivered through a white labelled Business Center or available via APIs, these tools offer online branding solutions that give advertisers a new stream of digital revenue while helping small and medium size businesses monitor, manage, and build stronger reputations.
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.
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.
RSS Feed