Q1 LSA Member Webinar

Objectives:

• Discuss key metrics and developments

• Get your feedback/opinions

• Your ideas re future webinars:o Roundtables?

o Interviews?

o Discussions of particular companies/topics?

greg@theLSA.org

Upcoming LSA Webinars

• Rio SEO (May 5)

• Sweet IQ (May 26)

• Moz (June 16)

“Members Only”

Place Conference (9/21 -- Chicago)University of Chicago’s Gleacher Center

Placeconference.net

Beacons and beyondHow location analytics are transforming marketing

New opportunities with offline to online retargetingProximity marketing: what works and what’s a waste of time?

Will real-world analytics kill the click?In-store mobile engagement and why it’s not about coupons

VR/AR and the indoor experienceThe “Physical Web” and what it means for marketers

Place Conference (9/21 -- Chicago)Placeconference.net

Noteworthy Q1 Events• Mobile driving growth, PC flat/down

• Facebook Messenger Platform launch (“conversational commerce”)

• Google AMP launch

• Growing display ad crisis/rise of ad blocking

• Launch of Gear VR and Oculus

• AI/machine learning gains

• Google AlpaGo victory over Go Champ 4 - 1

• Offline analytics and “location optimization” gaining ground in enterprise

• Lots of beacon rollouts

Consumers

(all about mobile)

Source: SimilarWeb State of the Mobile Web Report (2016)

roughly 56% of consumer traffic to leading US websites now from mobile devices.

The Mobile Majority

Source: Movable US Consumer Device Preference Report (2/16)

• 68% opens mobile• 53% conversions PC

Most Emails Opened on Smartphones

Source: comScore February 2016

US Smartphone Penetration

Source: comScore February 2016

Millennials: Above 90%Smartphone Penetration by Age Category

Source: Gartner, IDC Q1 global PC sales/shipments estimates

Continuing Decline: Q1 Global Shipments

IDC

-11.5%

Gartner

-9.6%

Digital Media Time

Source: comScore February 2016

Share of Digital Media Time Spent by Platform

Source: Yahoo/Flurry (2016)

95% of mobile time spent in apps

Time Spent: Apps Dominant

Browser Audiences Larger

Source: Morgan Stanley using comScore data (Q4 2015)

“US mobile browser audiences are 2X larger than app audiences across the top 50 mobile web properties and have grown 1.2X faster over the past 3 years.”

App Time Very Concentrated

Source: comScore – 2015 U.S. Mobile App Report

• People typically engage with 25 apps per month

• 50% of all time spent on smartphone apps occurs on the individual’s single most used app

• Roughly 80% of smartphone app time is spent with users’ top three apps

Source: Bizrate US Point-of-Sale Network of 5,000+ retailers (4/16)

PCs Still Dominate E-Commerce

Source: Bizrate US Point-of-Sale Network of 5,000+ retailers (4/16)

72% of M-Commerce from iOS

“50% of consumers already using or planning to use mobile

payment services”

Mobile Payments Usage Growing

Source: Accenture “Screenager” study among 28,000 consumers in 28 countries (4/16)

Source: Google/Ipsos consumer survey data 2/16

82% of shoppers say they consult their phones on purchases they're about to make in a store

In-Store Mobile Usage

Local Search

(or “loco search”)

Source: Google, Bing statements 2016

Previous: 40%, 50%

Official: 30%

53% of Bing app search

Voice search: 40% local

Local % of mobile search

Local-Intent Search

Source: MindMeld consumer study 2016

60% started using w/in last 12 months

Voice Search Momentum

Source: statements made at LSA16 conference, SF, CA 3/16

Google director of engineering Chandu Thota said that mobile search is inherently local and that Google regards all mobile queries as potentially local

All Mobile Queries “Potentially Local”

Search Volumes on PC Flat

Source: comScore search query volume data, 2009 - 2016

Source: StatCounter, 2/16 (US mobile search market share)

US Mobile Search Share

“We’re announcing that beginning in May, we’ll start rolling out an update to mobile search results that increases the effect of the ranking signal to help our users find even more pages that are relevant and mobile-friendly.”

-Google webmaster blog 3/16/16

Mobile Friendly Ranking Boost

AMP Pages

• Went live in Feb.

• Primarily for publishers (today)

• Load faster/ranking boost

• No interstitials, no pop-ups

• Will they last?

App-Like Experience

… Or Ads (Organic MIA)

Source: Yahoo/Flurry (2016)

95% of mobile time spent in apps

Time Spent: Apps Dominant

Source: IDC survey of 750 US adults (18 to 44), 80% were smartphone owners (2016)

Only 36% of local searchers start with a “search engine”

Local Search Fragmentation

Complex Purchase Path

Source: IDC survey of 750 US adults (18 to 44), 80% were smartphone owners (2016)

65%Ratings/review site

61%Social network

59%Search engine

Source: LSA-Burke 2015 Local Media Tracking Study, n=8,000

Consumers who made phone call, store visit, visited website, emailed

Contacted/Bought from Local BizAfter Using

Cross-Platform World:Internet Lookups & Purchases

Source: Burke Local Media Tracking Study (3/16) based on full-year 2015 data

Source: Burke Local Media Tracking Study (3/16) based on full-year 2015 data

Consumer Views of Local Media

Most Trusted

1. Search Engine

2. Friends/Family

3. Company Website

Most Accurate

1. Search Engine

2. Company Website

3. Print Yellow Pages

Ready to Buy

1. Company Website

2. Search Engine

3. F/F = Ratings/Review Sites

Digital Ads

(triumph and crisis)

Digital to Become #1

US Ad spending in 2017

Source: eMarketer ad pending forecast March 2016

$72 billion

36% of total media spending in US 38.4% of total media spending

$77.4 billion

Local: Digital Exceeds Traditional

Source: Borrell Associates (2016)

Viewability Problems• 54% of online display ads are non-viewable

• Estimates argue only 8% of digital impressions are ever seen by a real person

Source: Third party study data compiled in Outdoor Advertising Association of America report (3/16)

Bot Fraud a Growing Problem

Source: Bot fraud study by Association of national Advertisers (1/16)

Source: Trusted Media Brands marketer survey (2016)

Moving away from Banners?

Why the clicks?

• Accidental — 60%

• Like the company, product or service promoted — 16%

• The ads are interesting — 13%

Source: Retale survey of 500 US adult smartphone owners (2/16)

Mobile Display Clicks Largely Accidental

Ad clickers’ “emotional reactions” to unintentional clicks:

• Annoyed — 68%

• Frustrated — 45%

• Angry — 22%

Source: 2016 Accenture Digital Consumer Survey

Consumers Frustrated by Ads

Ads Disruptive

Source: 2016 Accenture Digital Consumer Survey

Top Reasons for Ad-Blocking

Source: GlobalWebIndex Consumer Survey (Q1 2016)

Studies argue majority of 18 to 34 year olds now blocking ads either or PC or mobile or both

Ad Blocking Demographics

Source: Sourcepoint and comScore, “The State of Ad blocking” (Q4 2015)

Social Media (or Facebook)

Social networking accounts for one in every five minutes spent on the

internet.

Social Dominates Engagement

Source: comScore February 2016

Source: comScore February 2016

79% of Social Media Time Mobile

Source: comScore February 2016

Facebook Dominates

Snapchat’s Outlier Profile

Source: comScore February 2016

Source: SimilarWeb Global Search Marketing Report 2016

Search Still Rules Desktop TrafficSearch drives 10X more traffic on the PC vs. social

65%Ratings/review site

61%Social network

59%Search engine

Source: LSA-Burke 2015 Local Media Tracking Study, n=8,000

Consumers who made phone call, store visit, visited website, emailed

Contacted/Bought from Local BizAfter Using

• 3 million advertisers

• 70% outside US

• Most are SMBs

Roughly every 6 months Facebook adds roughly 500,000 new advertisers

Source: Facebook filings and public statements (2016)

If, hypothetically, 70% of Facebook’s US-based advertisers are SMBs, more than 600,000 SMBs in the US would be Facebook advertisers today

Q1 Facebook Advertiser Numbers

SMB Trends

(Those Wacky Locals)

• 80% on social media • 70% on Facebook

Page update frequency:

• Daily – 12%• Weekly – 20%• Monthly – 25% • Quarterly/less often – 43%

SMBs Embracing Social

Source: Thrive Analytics, “Local Pulse Survey” 2016, n=1,116 small businesses

19% of SMBs have paid for social media advertising

1. Social media2. Company website 3. Print yellow pages4. Online display5. Paid search6. Direct mail

7. Email8. IYP9. Event marketing10.Outdoor11. SEO12.Coupons

Source: Thrive Analytics, “Local Pulse Survey” 2016, n=1,116 small businesses

Perceptions of Effectiveness

1. Facebook/social media2. SEO3. Website development/e-commerce4. Listings management/content creation5. Paid search6. Everything else . . .

Source: Thrive Analytics, “Local Pulse Survey” 2016, n=1,116 small businesses

Where They Want Help

62013

7.82016

Average number of media types/channels used by SMBs to market themselves

Source: Thrive Analytics, “Local Pulse Survey” 2016, n=1,116 small businesses

Growing Complexity

A Total Mess

Source: Scott Brinker, ChiefMarTec 2016

Increase budget1. Mobile2. Online display3. Paid search4. Radio5. Online video

Decrease budget1. PYP/IYP2. Newspapers3. Coupons/deals4. Press

releases/direct mail

5. Blogging

Source: Thrive Analytics, “Local Pulse Survey” 2016, n=1,116 small businesses

Spending Allocations

What about social?

1. It’s “strategic”

2. Competitors are doing it

Only 6% cited ROI/measurability

Source: Thrive Analytics, “Local Pulse Survey” 2016, n=1,116 small businesses

Why Digital?

Who does your marketing?

Source: InfusionSoft 2016, n=1,000 small businesses

71% DIY

DIY Is Dominant

Source: Thrive Analytics, “Local Pulse Survey” 2016, n=1,116 small businesses

1. We ask customers how they found out about us (59%)

2. We try to determine where each lead came from (35%)

3. We monitor website anaytics (28%)4. We use coupons/promo codes (18%)5. We don’t track (16%)

74% not using any tools/tech to measure ROI

Calls, visits, appointments also “monitored”

How They Measure Performance

Are our marketing efforts effective?

Source: InfusionSoft 2016, n=1,000 small businesses

62% say “no” or “don’t know”

Most Uncertain

Messenger Platform

(or Botmania)

Messenger As Platform

900 million monthly active users

“Conversational Commerce”

Launch partners include Bank of America, Burger King, CNN, Expedia, Fandango, LivePerson, Salesforce, Shopify, StubHub, Thrillist and UNICEF