2016 Predictions for Location-Based Marketing, Advertising & Commerce

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2016 PREDICTIONS Location-based marketing, advertising and commerce predictions from around the industry.

Transcript of 2016 Predictions for Location-Based Marketing, Advertising & Commerce

Page 1: 2016 Predictions for Location-Based Marketing, Advertising & Commerce

2016

PREDICTIONS

Location-based marketing, advertising and commerce predictions

from around the industry.

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INTRO

2015 brought to the forefront conversations around the SMB-vendor relationship (DIY, DIFM,

DIWM, etc.), advertiser churn, importance of understanding “location,” online-to-offline, ROI

attribution and much more. In addition, we watched mobile overtake desktop in local search

and mobile devices are becoming an increasingly integral part of the consumer journey.

BUT WHAT WILL 2016 HOLD FOR LOCATION-BASED MARKETING, ADVERTISING AND COMMERCE?

This is precisely the question we posed to our membership of media companies,

agencies and technology providers. With 300 members in over 20 countries, we brought

together an interesting array of perspectives and have compiled all 24 predictions here.

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Contents

Intro............................................................................ 2

David McIninch Acquisio........................................... 4

Lynn Tornabene AffinityX.......................................... 5

Raphaël Iscar Agendize............................................ 6

Manish Patel Brandify............................................... 7

Ellen Brezniak Constant Contact............................. 8

Ted Paff Customer Lobby......................................... 9

Ravi Sundararaman DataSphere............................ 10

Anthony J. Vela Jr. Donald R. Harvey Inc............... 11

Lauren Moores (PhD) Dstillery............................... 12

Steven Aldrich GoDaddy.......................................... 13

Anna Chandler Go Local Interactive....................... 14

Christine Bensen iCrossing..................................... 15

Nate Young Kenshoo............................................... 16

Nick Neels Location3 Media.................................... 17

David Shim Placed................................................... 18

Frost Prioleau Simpli.fi........................................... 19

Manpreet Singh TalkLocal...................................... 20

CJ Arseneau Telmetrics.......................................... 21

Rick Bastian UpCity.................................................. 22

Jeff Tomlin Vendasta............................................... 23

Grace Chan Wanderful Media.................................. 24

Sonali Engineer We Simplify the Internet (WSI)..... 25

Ginger E. Jones WebPunch..................................... 26

Liz Walton Yext......................................................... 27

Are you in the business of local?............................. 28

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2016 PREDICTIONS

David McIninchCRO

Search Gets Real Personal 2016 is the year where the “Tipping Point” begins to actually be able to execute on cross-channel, cross-device, complex customer journeys with a certain amount of both reliability and clarity. While some may have felt this may have been able to fit as a 2015 prediction, the reality of reliable device attribution, purchase/searcher intent and identity management (including deep audience targeting) only seems to be a reality now, with 2015 really being the proof of concept needed to blow the doors off personalized search in 2016.

Facebook has proven the value to advertisers of custom audiences, despite many detractors questioning the validity of some of the reporting, the use cases and successes of many advertisers are too many to ignore (notwithstanding FB’s astronomical growth rate). Most platforms that provide some combination of search and display can now leverage first party data in one form or another to hyper-target individuals, groups, households, and everything else in between to deliver personalized and relevant search results. In 2016 (and beyond), search will be thought of in the content of a specific audience vs. a persona or a set of similar attributes alone.

In the context of where this has the biggest impact for local search specifically - searches done in the moment, largely on mobile devices, all with higher-than-average purchase intent; this has tremendous value for advertisers, searchers and everyone else in-between.

The rise of targeted, localized, high-value search comes with an interesting side effect: CPCs should rise as a consequence of higher ROI, greater demand and a unique real estate crunch as a consequence of device form and function. Said plainly: mobile SERP results are far more space-constricted. Local businesses will need to fight, scrape and “invest” in making sure their results are appearing early in the scroll in a mobile experience. This will of course mean CPCs for mobile should rise in 2016 and organizations that have unique solutions to help these SMBs out should consequently be in greater demand in 2016.

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Lynn TornabeneCMO

Advertisers to Stop “Testing Waters” & Geo-Targeting Will Be Part of Every Campaign • Ad tech will lose its luster as advertisers become more judicious about their budget.

That doesn’t necessarily mean advertisers will spend less money, only that they are going to be far smarter about how they divide that budget among their digital options. Advertisers have spent years testing the waters, getting a feel for the channels, technologies and tools that deliver them the best return on their investment. In 2016, a critical mass of advertisers will have the necessary experience to slow down on experimentation and instead divert their budgets to proven tools that help them eliminate wasted spend. As a result of this maturity, fewer ad tech companies will be able to cast themselves as shiny new objects and will instead be judged on results and expectations. As clear technology winners emerge and differentiate themselves, we’ll see increased ad tech consolidation, and possibly even see some point solutions fold altogether as marketers move their spend to better options.

• Geo-targeting will become part of every ad campaign. Many mobile advertising companies push their geo-targeting capabilities right now, but the truth is that there’s a gap between what they claim and what they can actually provide. That gap will close dramatically in 2016, and more advertisers will not only use geo data, but begin to craft multiple targeting strategies that use the data. One example is the timing of ad delivery. Geo-targeting is often pitched as being able to reach a consumer as they approach a storefront, but this is still such a small timeframe that it’s impossible to reach consumers at scale. What we’ll see in 2016 is advertisers using that location data to serve ads later, enticing the consumer to either return to the retail location or make an online purchase. In essence, this use of real-world signals mimics the behavioral targeting strategies that are so prevalent online, and should be a natural evolution for many advertisers.

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Raphaël IscarHead of Marketing and

Communications

Businesses Will Remain Behind on Consumer Trends & Customers Will Want More Real-Time Engagement • Consumer behavior changes faster than what companies can offer: In 2016, 80% of

the population of North America will have access to the Mobile Internet, up from 75.1% in 2014. Consumers will conduct more searches, comparison shopping and purchases online than ever before. The same applies to booking appointments online, calling businesses through their web-pages, and making inquiries or offering them live and public feedback through social media. Consumer behavior will also continue to rapidly outrun the ever-expanding digital ecosystem shaped by websites, social media channels, landing pages and marketing through email and SMS, meaning businesses and organizations will need advanced, distinct and easily integrated digital tools to truly connect with their customers. This way, businesses can give customers the information they need when they need it, instead of offering more “white noise.”

• Real-time customer engagement becomes imperative at every digital touchpoint: In 2016, there will be no point to having an online presence without effective engagement tools. National brands as well as local businesses have to remodel their existing organizations and add these solutions around a continuum of engaging, converting and tracking customer activity. It will be key to create intuitive online customer experiences by allowing consumers to request real-time interactions with the business they visit through apps like online scheduling, click-to-call, live chat when they are ready to buy, whether through websites, social media pages or more. This will be important not only to assure great customer service experiences, but also to exercise influence on consumers’ choices before, during and after the consideration and decision stages of the buying cycle.

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Manish PatelCEO

Brands to Embrace Chief Location Officer (CLO), Attribution & Market Consolidation • The Rise of the CLO: Consumers are more mobile now than ever before, and 2016 will

be the year in which brands will appoint a Chief Location Officer (CLO) who can use data to garner the attention, loyalty and conversion of customers. All consumers have unique characteristics, habits and behaviors and the promise of mobile speaks to the possibilities of what we can we do with this rich data that customers provide. Brands that embrace the ability to create individual customer profiles and build proprietary audiences will garner trust and humanize themselves in the eyes of their customers.

• Closing the Loop – The Holy Grail of Online-to-Offline Marketing: In 2016, the focus for all brand marketers will be to find concrete ways of quantifying customer in-store visits and their ROI. With the help of a CLO and platforms that can synthesize mobile customer data, marketers will better understand who the customer is and if they were driven to brick and mortar locations. By understanding this information, brands can eliminate customer amnesia, decrease frictions across different channels of engagement and provide a situational customer experience catered to individual users. We have seen retailers beginning to adopt technologies like Wi-Fi, beacons and mobile wallets to close the loop. And while customers have yet to fully adopt any of these technologies, this space will likely get flooded with new providers.

• Market Consolidation: In today’s increasingly crowded marketplace of local digital presence management, we are beginning to see that there are too many companies offering undifferentiated point solutions. These companies will have to compete for attention of brands and work harder to exceed expectations of customers. Today’s algorithmic/programmatic marketing world will force scale upon companies in a commoditized marketplace to better compete by means of organizational consolidation.

Brands to Embrace Chief Location Officer (CLO), Attribution & Market Consolidation

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Ellen BrezniakSVP, Customer Operations

Small Businesses Will Embrace Video Streaming With all that’s on their plates, small businesses are not traditionally early technology adopters. Yet when Constant Contact surveyed small business owners in September 2015, asking them which emerging trends might play a role in how they market in the next couple of years, video streaming came in at number one with 51%. As marketing becomes more targeted and more immediate, live video streaming apps like Periscope and Meerkat will continue to gain ground. The value of small businesses is the personal relationships they forge and whether it’s offering a behind the scenes peak at how their business operates or what happened at the latest book signing or wine tasting, video streaming can build that customer connection in a really fun, engaging way.

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Ted PaffCEO

Interesting Developments in Google Home Services, Facebook Local Search, Nextdoor Ads & SMB Local SEO • Google expands their Home Services ad formats into other verticals and begins testing

its new native appointment booking functionality as part of it.

• After cleaning up their location data mess, Facebook’s local search product gains early market traction and launches an ad product. This product along with Nextdoor’s new ad/sponsorship products become the next hot “should do” item for local business marketing.

• SEO for local SMBs on Google gets more difficult because of (1) even less organic page one real estate availability and (2) Google’s increasing reliance on data that is difficult for SMBs to “optimize” (e.g. click rates, read times, bounce rates).

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Ravi SundararamanGroup Product Manager,

Marketing

Display Ads to Make Comeback via Native, Video and Solution for Ad Blockers • Display advertising will make a comeback in the form of native ads, with ability for the

casual consumer to convert to a lead directly from the ad itself (without the need for a separate landing page experience) where that information is readily available. E.g. FB lead ads where information like name and email is readily available while looking at the ads by the virtue of being logged onto FB and this date can be easily transferred to the marketer with one click by the consumer. Google will try to do the same with publishers that have google sign-in enabled or on search ads that display as a result of a logged search, and even on apps.

• Ad blockers may constrain available inventory but I see apps coming up with the solution earlier to the challenge as opposed to web properties that are dependent on browser innovations, and more readily susceptible to ad blocking. This may increase advertising revenue for successful apps as advertising dollar shift with inventory availability.

• Native advertising will spur the growth of short videos (e.g. 15 secs) used as creatives instead of static or less appealing animated banner ads. YouTube, FB and other video hosts may provide off-the-shelf tools to adapt existing videos to a relevant ad format.

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Anthony J. Vela Jr. Vice President,

Senior Media Consultant

Facebook Developments in 2016 • Facebook will start an advertising campaign for people to use its search capability for

local businesses and service.

• Facebook ad revenue doubles in 2016 year over year.

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Lauren Moores (PhD) Vice President,

Strategy

What to Expect from Beacons, Wearables and Cross Device Marketing • Marketers Adopt Beacon Proximity Signals: Proximity signals, indicators of when

you are close to a beacon or sensor, will replace our current fascination with location signals which indicate where you are and are derived from our mobile devices and GPS. Indoors and beacons can be more accurate than GPS, but devices and SDKs are still needed to pick up the broadcast signals coming from a beacon and transmitting that data to the cloud. Small business owners may have an advantage in the placement of the iBeacon, Eddystone or other beacons but the barrier will be collecting beacon signals as most small business owners have no need for their own app. As for the switch to this method of location, it adds to what we already have. Our reliance on GPS location signals for mobile marketing does not suddenly divert to sensor data, yet. Advances in beacon technology and a growth in marketer awareness, will make it a solution that early adopters or new marketers incorporate in their 2016 plans.

• Advertisers Dig into Physical and Emotional Signals from Wearables: The growth in wearables has played a huge role in changing the way we manage our health in 2015. This growth in “self-data,” which includes physical and emotional signals, is just starting to be used for brand messaging and targeting. This data is also extending the ability of neuroscience market research to move beyond panels and studies to quantitative data. Marketers will need to keep in mind that we buy wearables because we want to know ourselves and not because we want advertising. We want recommendations for us - reminders for what we need to do, what we may have forgotten or a nudge to ensure we are staying healthy.

• Cross-Device Marketing Becomes Even More Prevalent: It’s not really about mobile as a silo anymore. It’s about using the digital and physical data to reach your audience wherever they are. Studies in 2015 have already shown that mobile should be not used alone and instead, when part of the overall media-mix, enhances other digital and linear channels. The distinction of digital channels will merge by the end of 2016.

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Steven Aldrich Senior Vice President, Business Applications

Marketing Tech Will Continue Momentum in 2016 • Marketing technology will continue to gain momentum in 2016 by becoming more

automated and simpler for the business owner. Businesses of all sizes will get smarter about engaging their audiences by tapping into the information available through the shift to email marketing, custom websites, and social presence.

• Email marketing will continue to be the most effective and inexpensive way to build lasting relationships with customers and generate new business despite the continued growth of new digital marketing services like a business’ social presence. And more small businesses will migrate from generic email addresses from AOL and Gmail to a custom address as they realize every business email is a brand building opportunity. Survey data shows that customers are 9X more likely to buy from a businesses that use a custom email address using their own domain.

• As millennials and mobile continue to be top of mind for marketers, ecommerce will continue to move toward the mobile world. With 51% of consumers spending more time on mobile than their desktops, cloud-based and mobile commerce platforms will be vital to success.

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Anna Chandler SEO Specialist

SEO and Web Usability Predictions • Schema markup will become a confirmed ranking factor.

• To improve mobile speed, Google will offer image-less posts on slow connections in order to load text immediately and then let users select images to load and show.

• Website accessibility will be pushed as a potential legal compliance and as part of a good user experience.

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Christine Bensen SVP, Media Strategy

Brands Will Bolster Digital Activity with Traditional Media • As brands become even more digitally centric – perhaps even digital first - they

will round out their digital-ness with traditional media (as opposed to the other way around.) Digital agencies should get their hands on some traditional media expertise to stay competitive.

• As Google continues its drive for the most relevant consumer experience possible, ad spaces on their platforms will continue to get pushed around keeping agencies and brands on their toes in trying to co-exist with them.

• Facebook will continue to evolve as the most powerful targeted advertising platform and take a chunk out of programmatic spending in the process.

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Nate Young Director,

Business Development

Personalization Will Drive a Consumer-Centric Approach to Marketing 1. Personalization: More and more consumers will expect both national-local and local-local

businesses to understand their purchase preferences and what step of the buying process they’re in, with an expectation of convenience. Yet they’ll demand brands accomplish all of this without being intrusive. To present timely messages within the context of a consumer’s preferred medium (mobile phone, tablet, desktop, etc.), brands will need to understand how and when to present the appropriate message based on proximity and market (various markets behave differently); bring a consumer-centric approach to marketing, customer service and the buying experience; and focus on both new and existing customers alike, as loyalty is easily lost but not easily gained as competition for customers continues to rise. Specifically retailers will focus on personalization – utilizing location, device, first- and third-party data to understand intent and context of individual customers, retailers will then leverage the information to produce highly relevant ads, copy and offers to drive consumer behavior. They’ll do this through the use of apps, (order ahead, loyalty points, payment), smart call routing and knowledgeable reps, online behavior coupled with individual customer data, same-day delivery and beacon technology to create a hyper-personalized shopping experience.

2. Proliferation of Publishers and Channels: 2015 saw Instagram, Yahoo Gemini, and other major industry players enter the ad publishing game, and 2016 should continue that trend. To handle the growing number of publishers and ad types, SMBs will likely become more reliant on agencies to manage their budgets, whereas agencies will become more reliant on technology to do so effectively and efficiently.

3. SMB & On-Demand: Collaborative consumption (shared economy) will continue to expand in 2016. The “Uber-fication” of services and products, including hotels (Airbnb), transportation (Uber, Lyft), services (Taskrabbit), financial services (LendingClub), logistics (Instacart), will drive a shift towards the individual entrepreneur and away from the larger national brands. In turn, this will put an emphasis on catering to the consumer by providing more value through understanding local market needs and adding value through convenience.

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Nick Neels Head of Local Search Marketing

Local Search to Get Its Own Budget, Google Will Offer Paid Listings • Brands will carve out separate local search budgets. For years, the typical digital

marketing strategy for multi-unit brands has been primarily executed at the national level, meaning the same strategy is applied for all locations. Brands have stayed away from individualized store level strategies because they continue to be challenging to scale with hundreds or thousands of locations. With Google announcing “near me” searches growing 34X since 2011 and doubling since 2014, multi-unit brands will finally see the need to trim the fat of their national blanket campaigns and partner with internal leads or external providers who are able to focus on what will drive success for each individual store; increase local PPC budget here, execute local SEO optimization there, pilot local video and display ads elsewhere, etc. As brands localize their digital marketing efforts, the budgets will become localized as well and increase each subsequent year.

• Google will offer paid local business listings. Google continues to shuffle the local SERP layout in an effort to provide the best user experience and search results across desktop and mobile. This year’s shifts have resulted in the local listing results being shrunk down to a 3-pack, while being elevated to the top SERP position. The local SERP layout is now consistent across all devices, priming the local listings for paid placements. One year ago, Google was seen testing paid local listings in the wild, and more recently Google launched paid home service ads that have a similar layout as traditional local listings. It is only a matter of time before Google monetizes the local listings, and 2016 will be the year.”

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David Shim Founder & CEO

Location Based Optimization (LBO) Becomes Common Term, Privacy Issues Persist • LBO: In 2016, Location Based Optimization (LBO) will become a term used by

marketers to describe optimization that occurs in the physical world to drive store visits.

• Privacy: In 2016, how location data is collected will be as important as the quality of location data. With web cookies, there was a learning curve associated with opt-in and opt-out that resulted in slew of lawsuits and legislation for advertisers, those that don’t apply those learnings to location and privacy in 2016 will run into similar implications.

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Frost Prioleau CEO

Increasing Emphasis on ROI, Multi-Channel and Native • Local and SMB Advertisers Shift Goals from Awareness to ROI: Local advertisers, like

national advertisers, will continue to become more knowledgeable and sophisticated about how they use programmatic advertising. Traditionally, local-focused campaigns have been run with a goal of “awareness.” 2016 will usher in a trend where more local advertisers will focus on ROI metrics and become increasingly interested in campaign insights and analytics to further guide their media strategies.

• Move to Multi-Channel Campaigns from Siloed Campaigns: National advertisers have increasingly optimized media spend via multi-channel campaigns instead of separate campaigns focused on mobile, desktop, social, video, etc. In 2016, localized advertisers will follow suit in demanding that they reach their prospects on “any device, any media, at any time”. Advertisers see improved ROI with multi-channel, as dynamic allocation to the best performing media, formats, and devices drives improved campaign performance.

• Year of Native Advertising: Already gaining critical mass prior to Apple’s decision to allow ad blockers in iOS 9, native advertising will experience tremendous growth as publishers seek ad formats that are less invasive to users and less likely to be blocked. Advertisers will shift increased dollars to native as more and more native inventory becomes available programmatically. Native ads will make up a bigger piece of the revenue that publishers need to continue to deliver online content at no cost to readers.

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Manpreet Singh President

More Search by Voice and “Rich Snippets” The user-interface is evaporating into thin air right before our eyes. It began when desktop computers gave way to pocket-sized mobile search and the final chapter has already begun with the likes of Siri and Echo making inroads in the local search space. With consumers interacting with computers using their voices and ears instead of their clicks and views, the hands-free convenience of on-demand booking will be key to accessing the new hands-free consumer. In SEO, introducing “rich snippet” content that lets search engines answer search queries directly (rather than provide answers via a link to your website) will also become critical for anyone looking for top search results. Voice search may not help you land more web visits. However, the businesses that master rich snippets will gain credibility and become the first answer when consumers ask where to shop.

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CJ Arseneau VP of Marketing

Marketers Will Want “Bottom Line” Analytics & Ability to Personalize • In the coming year, marketers will become more focused on quality versus quantity

in their use of marketing analytics. Rather than casting a wide net for the sake of gathering all possible data, marketers will zero in on specific metrics that allow them to concretely measure performance and make actionable decisions to improve lead quality and overall ad program results. This applies to call analytics as well with a focus on using rich call data to determine which lead sources are driving ‘good calls’ or quality leads.

• To drive deeper engagement and remain competitive, we expect marketers in 2016 will increasingly turn to next-level data-driven marketing to dynamically personalize content for customers as individuals rather than broader audiences. This includes using call attribution technologies, such as dynamic number and content insertion, to tap into consumer preferences and patterns and ensure the delivered content, e.g., special offers, text, images, is tailored to that specific search journey.

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Rick Bastian Strategic Partnerships and

Business Development Manager

SMBs Focus on Social & Listings, Freemium Offerings to Start Charging Early Adopters • Major adoption of social media by SMBs. Considering the massive increase in the

major Yellow Page type PPC categories price points, social will be looked at as necessity for the SMB.

• For brick and mortar SMBs, local listings will continue to be a big point of emphasis, and beacons will be the new buzz word. While I still expect beacon adoption to remain low, it will be what social/mobile was in 2010, talked about but not really seen as important. Early adopters will get burnt while Yext and the others try to figure out how to scale properly to the mom and pops.

• Yellow Page companies will finally throw in the towel with search related offerings and move to more conventional forms of marketing i.e. email and database/CMS

• Marketing automation will blow up in the SMB space and the “freemium” type offerings (HubSpot) will start to charge their early adopters to keep up.

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Jeff Tomlin CMO

Marketing Automation to Facilitate Spend and Content • Marketing automation will drive digital marketing spend for local businesses, and

content marketing will meet marketing automation. Agencies need to automate manual tasks to save time and lower cost of acquisition. While the imperative to use marketing automation is essential, agencies cannot lower the quality of content sent to prospects, or they risk losing prospective clients.

• The tide will turn away from automated manual content on social channels and toward automated sponsored content. A tweet is meant to be ephemeral, hence the shift of younger generations to apps like Snapchat and Burn Note--consumers don’t want to read a series of scheduled tweets from brands. Of course, apps need to secure a revenue stream. As automation becomes more intelligent in regards to adding sponsored ads and recognizing the needs of each unique audience, ads will be customized to consumers and be seen as relevant and useful rather than spam.

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Grace Chan VP Product

The Rise of Offline Affiliate Marketing • Within the next 12-18 months, we will see an equal efficiency of online affiliate

marketing and online/offline attribution marketing, although the means of getting there might not be the same conventional methods. This will open up lots of opportunities in offline affiliate marketing and present new challenges to traditional direct marketing channels.

• More elaborate use cases of location based data will help close the gap or lost attribution in offline sales.

• Companies will continue to develop horizontal platforms to help level the playing fields for SMBs and local merchants. The competition will remain fierce, no clear leaders will emerge yet in 2016.

• Amazon remains the number one leader in search for products and will continue to lead Google by a wide margin.

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Sonali Engineer Manager, Paid Search

Expect Developments in Search, SEO, Bing and Facebook in 2016 • Search will become more defined. It will go even beyond informational & transactional.

• SEO as we know it is finished - the same well defined keywords will make SEO and websites semantically more intelligent.

• The rise of Bing as a real competitor.

• Facebook will see huge gains because of transaction based campaigns - so ecommerce will see big returns from Facebook.

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Ginger E. Jones Co-Owner

Heads Up With Google+ The biggest thing to happen in local search will be changes with Google+ which appears to affect social, reviews, SEO, and local search. A big Google bomb!

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Liz Walton Director of Marketing

Big Ideas Will Become Actionable We’ve been living in a world of moonshot thinking. Big ideas, futuristic technology, and big financial valuations. In 2016 I think we’ll start to see applications of those big ideas that businesses can benefit from in a meaningful way.

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ARE YOU IN THE BUSINESS OF LOCAL? LOCAL. IT’S YOUR NEIGHBORHOOD. YOUR COMMUNITY. WHETHER IT’S UP

THE STREET. OR ACROSS TOWN. IT’S WHERE YOU ARE. At LSA we’re in the business of local and we serve those who bring location-based commerce to life. From consumers and small merchants to national brands. From the corner store owner who knows everyone’s name to the national retailer next door whose name everyone knows.

More than 90 percent of consumer spending is offline. Yet every day people use an expanding array of digital devices and media to make these local buying decisions. Insight into this complex purchase path is vital.

That’s where LSA comes in. We support members that bring consumers and businesses together where and when it matters most, at the point of purchase - so every sale is just a visit, click, or call away.

We’re helping members realize the promise of location-based marketing and commerce. Connecting buyers and sellers. Boosting member sales and revenues. Sustaining vibrant communities. This is the power of location and local commerce.

TO LEARN MORE ABOUT LSA MEMBERSHIP VISIT: http://bit.ly/LSA-Membership