BIA/Kelsey Local Commerce Monitor · small and medium-sized businesses (SMBs) • Topics to be...

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August 21, 2013 BIA/Kelsey Local Commerce Monitor: SMB Adoption of Mobile, Social, E-Commerce, Loyalty Programs and Promotions For audio: Listen through your speakers or dial in. Once you choose, please do not change setting. Dial in: +1 (415) 655-0061 | Access Code: 182-377-518

Transcript of BIA/Kelsey Local Commerce Monitor · small and medium-sized businesses (SMBs) • Topics to be...

Page 1: BIA/Kelsey Local Commerce Monitor · small and medium-sized businesses (SMBs) • Topics to be covered include mobile, social, loyalty and promotions and e-commerce • Special invitation:

August 21, 2013

BIA/Kelsey Local Commerce Monitor: SMB Adoption of Mobile, Social, E-Commerce,

Loyalty Programs and Promotions

For audio: Listen through your speakers or dial in.

Once you choose, please do not change setting.

Dial in: +1 (415) 655-0061 | Access Code: 182-377-518

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Today’s Agenda

• Rapid discussion of recent findings from Local

Commerce Monitor (LCM), BIA/Kelsey’s

ongoing study of the advertising behaviors of

small and medium-sized businesses (SMBs)

• Topics to be covered include mobile, social,

loyalty and promotions and e-commerce

• Special invitation: – LEADING IN LOCAL: SMB Digital Marketing

– Foremost event of its kind, specifically tailored to digital

marketing solutions that win for small and medium-

sized businesses (SMBs)

Steve Marshall Director of Research

Warren Kay Executive in

Residence

Peter Krasilovsky VP, Conferences and

Sr. Analyst

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LEADING IN LOCAL: SMB Digital Marketing

Key conference themes:

• The growing importance of web presence in the marketing mix

• The emergence of transaction marketing and commerce

• Optimizing sales channels

• Leveraging social and mobile

• Local search

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Helping Set the Stage with “Nuggets” from LCM

Online survey of SMBs about media usage, performance

assessments, and the use of mobile, social and loyalty

programs by SMBs.

Unique, fresh, trusted – since 1999.

About 600 respondents. Two groups: Core and Plus

Spenders. This material is a meld of the two.

Recent survey: Wave 17, Q3 - 2013

Survey details in Appendix. Results based on 600 responses have a confidence interval of +/- 4.0% at the

95% confidence level. The confidence interval is larger for those questions that were asked of just a subset of

the full sample.

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SMB Priorities for Next 12 Months

57.6% 49.8% 44.4% 43.3%

0%

20%

40%

60%

80%

100%

Search Advertising &Marketing (SEM, SEO)

Print Advertising &Marketing

Social Media Analytics

Q: There are many ways that you can advertise, market and promote your business.

When you think broadly about the various options, what is your priority for the next

12 months?

Advertising & Marketing Priorities

Next 12 Months

First Second Third (tie)

Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

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Number of Media Used Declined

Average Number of Different Media Used

for Advertising & Promotion

Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

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Number of Media Used Declined

Average Number of Different Media Used

for Advertising & Promotion

Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

Biggest Losers

(in SMB usage):

• Directories

• Cable TV

• Newspapers

• Outdoor

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Media Spend on Advertising & Promotion

Declined

Total Spend on Media for Advertising

&

Promotion Declined

See note in Appendix. Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

$37,556

$33,615

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Media Spending Intentions Cloudier

“Net Increasers” = Percentage of respondents intending to increase spending on advertising and promotion in next 12 months,

minus percentage intending to decrease.

39.2%

33.1%

6.0%

9.3%

2012 (Wave 16) 2013 (Wave 17)

0%

10%

20%

30%

40%

50%

Net Increasers

Not Sure

Spending Intentions for Media for Advertising

& Promotion for Next 12 Months

Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

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Where’s the Spending Going?

40.9% of SMBs pay for regular assistance

in maintaining their online presence (website,

profile/landing pages, social network pages,

blog, etc.)

On average,

they spend $4,704 annually, an increase over the prior waves.

See note in Appendix. Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

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Franchisors Heavily Committed to Online

Presence of Franchises

Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

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19.0%

19.5%

20.4%

24.6%

30.6%

32.7%

34.9%

54.0%

60.4%

0% 10% 20% 30% 40% 50% 60% 70%

Blog

Other Social Site

Enhanced Listing in Mobile Site

Google+

Video (YouTube etc.)

LinkedIn

Profile/Landing Page

Facebook Page

Website

Online Presence is Robust

We asked respondents to only count a social site if they have a page specifically for their business on that site.

Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

SMBs typically have a diversified (and growing) presence on the web.

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Social: Woven into Advertising & Marketing

Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

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Franchisors Heavily Involved in Social

Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

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Mobile: On a Roll (More Mobile Advertising)

Used Mobile A Year Ago (Wave 16 Q3/2012)

Using Mobile Now Wave 17 (Q3/2012)

Increase in use by Plus Spenders: 40% (Wave 16) to 53% (Wave 17). Source: LCM Wave

17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant

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Mobile: On a Roll (More Mobile Sites)

Mobile Website A Year Ago (Wave 16 Q3/2012)

Mobile Website Now Wave 17 (Q3/2012)

Increase in use by Plus Spenders: 33% (Wave 16) to 45% (Wave 17). Source: LCM Wave

17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant

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Mobile: On a Roll (Mobile Payments)

Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.

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Remembering All the Data

• Data can be hard to digest! We’ve created a series of

infographics to make LCM data easier to absorb.

• See them here: www.biakelsey.com/infographics/

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Local Commerce Monitor (LCM) Research

• Interested in learning more about LCM or getting a

custom cut for your business?

– Contact:

Steve Passwaiter, VP Business Development

[email protected] or (703) 818-2425

• BIA/Kelsey is helping clients LEAD IN LOCAL through industry and

local market forecasts, advisory research, small business surveys,

conferences and more. Learn more on our website:

www.biakelsey.com

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Continuing the Conversation

• LEADING IN LOCAL: SMB Digital Marketing

Sept. 11-13, Austin, Texas

• Hundreds of attendees, speakers and sponsors focused on

the technologies and best practices that will have staying

power and impact the solutions companies develop and

deliver to SMBs

• Save $200 on new registration with code: LCMWEBINAR

www.biakelsey.com/LeadingInLocalAustin

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Session and Speaker Highlights

• More exclusive research from BIA/Kelsey’s Local

Commerce Monitor (LCM) small business research

• SMB franchise leaders from Ben & Jerry's and 24 Hour

Fitness share insights from the stage

• Leaders from social, mobile and loyalty and

promotions talking about how they are bringing the latest

solutions to SMBs

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Networking and Transacting Business

• BIA/Kelsey’s conference attendees are

high-level company executives and

managers with decision-making power

• Attendees enjoy numerous evening

receptions, breaks, lunches throughout

the conference – all designed to

maximize business networking

opportunities

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Enjoy the Incredible City of Austin

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Questions & Comments:

Stephen Marshall

[email protected]

Copyright © 2013 BIA/Kelsey. All Rights Reserved.

This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract.

Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under

federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for

direct, indirect or consequential damages that may result from the use or interpretation of this information.

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Appendix: LCM Sample

Sample

Segment

Sample

Size

Minimum

Annual Spend*

Average Annual

Spend**

Core 303 No Minimum $2,565

Plus Spenders 265 $25,000 $73,146

*Minimum annual spend on media for advertising and promotion (i.e. not including spend on website

or other permanent web assets).

**Average annual spend on media for advertising and promotion, excluding outliers. For Core

sample, outliers are SMBs spending over $40,000 annually. For Plus Spenders sample, outliers are

SMBs spending over $500,000 annually.

Results based on 300 responses have a confidence interval of +/- 5.7% at the 95% confidence level.

The confidence interval is larger for those questions that were asked of just a subset of the full

sample. The data in this document is still subject to quality assurance finalization.

The material in this webinar was prepared using findings from the Local

Commerce Monitor (LCM) Wave 17 Survey, Core sample - conducted in

Q3/2013.

Sample characteristics:

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Appendix: Notes

• Slide 5: Average annual spend for Core sample on media for advertising and promotion, excluding

outliers (for the Core sample, outliers are defined as SMBs spending over $40,000 annually). We

use several metrics to measure average spend, of which this 3-year trend for the Core sample is

the clearest marker of what we believe is a trend in media spending. Average annual spend for

the Plus Sample showed a similar reduction, from Wave 16 to 17.