Boland ifa presentation

Mobile and Local Advertising For Franchises:

The “How” and “Why”

Mike BolandSr. AnalystBIA/Kelsey

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© 2013 BIA/Kelsey. All Rights Reserved.

Our Agenda

• Mobile By the Numbers• Local, Local, Local: Ad Targeting• Mobile Presence: Half the Battle• Mobile & Social: Going Native• Franchise Development• Franchise SoLoMo Report Card

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Sources: Query growth - Google internal data 2011; Tablet forecast - Forrester 2010

Apple iPad1

mobile searches have grown

5x in the past 2 years

20% of search is mobile50% of mobile search is local

– compares to 20% on desktop

Mobile & Local: Where are We Now?

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Mobile Time Share vs. Ad Share

Source: KPCB, eMarketer, IAB

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Mobile Advertising is Currently a Steal!

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Consumers Engage Across Screens

6Source: Google Internal Data, 2011. % of each platform’s traffic shown hourly for one day. Does not indicate absolute or relative traffic volumes.

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Hourly Distribution of Searches by Device Type

Tablet Mobile Desktop

Day EveningMorningNight

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Mobile is Driving Tangible Conversions

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… And Quickly

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Our Agenda


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Local vs. National Ad Spend in Mobile

2012 2013 2014 2015 2016 2017$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$2.03$3.11

$4.78$5.80

$6.90 $7.71

$1.22

$2.28

$3.90

$5.72

$7.20

$9.09

Non-location Targeted Location Targeted

US

$ B

illio

ns

Note: Numbers are rounded.

$3.25

$5.39

$8.67

$11.53

$14.09

$16.79

38%

54%

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Mobile Local Ad Performance

Source: Millennial Media

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Mobile Ad Performance

Localized mobile content and ads see higher engagement… before and after the click

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Driving Conversions at the Store Level

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Calls Product awareness

Store traffic

Click-to-call Product Local Ads Location Extensions

• Content should contain actionable information to align with mobile user intent

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The Online-to-Offline Factor

Most U.S. Retail is Offline, but a Growing Portion is Influenced Online and in Mobile

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The Online-to-Offline Trend Catching On...

Source: Millennial Media

Advertisers are adjusting to mobile usage realities by including localized calls to actions in mobile ads and websites

Kerry Brown

Jed will send me this question later today

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Example: Blockbuster

• Calls to action integrated into ad units (store locators, click-to-call, etc.)

• Closest locations are automatically provided, – Great for national advertisers and franchises.

• Campaigns drive and measure whatever actions the advertiser specifies (calls, clicks, directions)

• Blockbuster trial saw half of all clicks launch a map, 20 percent clicked a coupon and 22 percent of those shared coupon via Facebook

• YP also provides a customized landing page so that users are given a consistent and optimized experience.

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Example: Radio Shack

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Example: Adidas

• Mobile ad campaign designed to send shoppers into physical stores via Google Local Extensions

• Previously only focused on mCommerce transactions

• New metrics based on in-store conversions revealed dramatic difference in ROI

• Play Video

http://www.youtube.com/watch?feature=player_embedded&v=EdCFxNvuvSI

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Localize Across the Board… Including Ad Creative

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Example: Scout/Telenav

Situational Targeting:

“Get a 7-day free pass…Come run on a Treadmill, Not in the rain”

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Our Agenda


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Optimized Mobile Presence is Vital

Source: Compuware, “Why the Mobile Web is Disappointing End-Users”. March 2011

51% more likely to purchase from retailers

85% increased engagement

40% would visit a competitor’s site instead because of a disappointing mobile experience

To boost performance:

To keep customers:

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Example: Yelp

Fun Fact: 28% of Yelp’s users access the service via mobile, but 46 % of its searches are from mobile.

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What Does Yelp Offer?

Free • Customize and update

page • Respond to consumer

reviews (publicly or privately)

• View business trends and performance

• Revenue Estimator Tool

Paid • Sponsored search and

ads on other pages• No ads on your own

page• Video clip and/or slide

show

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BCG Study: Yelp Advertiser ROI

• Boston Consulting Group March Study – SMBs with free Yelp listing saw average revenue boost of $8K.– Those with Enhanced Listings saw average revenue boost of

$23K• Compares with average Yelp spend of $4.2K

• Category breakdown– Home — $54,000– Automotive — $39,000– Local services — $36,000– Hotel and travel — $36,000– Shopping — $24,000– Health & Medical — $20,000

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Example: 24 Hour Fitness

• Due to importance of reputation and word of mouth, 24 Hour dedicated resources to Yelp as a local marketing tool.

• Claimed many locations on Yelp and paid for “Enhanced Listings”

• Ads throughout Yelp desktop and mobile apps had 30% CTR• Profile pages generated 100,000 page views on average,

10K total reviews and a 7% conversion rate.• After seeing ROI, 24 Hour cancelled other local advertising. • Mobile accounted for 30% of traffic

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Our Agenda


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Native Advertising: The Next Wave in Mobile

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Example: Foursquare

• “Promoted Updates” and “Promoted Specials.”

• Served through Explore Tab

• Geo-targeted and behaviorally targeted

• CPA priced• 20 Launch partners:

Gap, Best Buy, Hilton, Walgreens…

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Our Agenda


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Franchise Development

• Many of the tools mentioned so far (and others) can be used for scouting locations and franchisees

• Most franchisees start out as brand users and brand advocates

• Data can reveal where they are, and the successful ad targeting methods to reach them

• Location isn’t just about location: it’s about audience profiling

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Targeting Locations and Franchisees with Behavioral & Location Data

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Location Tracking For Franchise Development

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Our Agenda


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Source: LCM Wave 16, Q3/2012 (and prior waves, if relevant). Methodology: Online panels. Findings may not be statistically significant. Most questions are asked to the full sample of approximately 300 in each Wave. However, where the sample size less than 300, that question has been asked of a subset of the full sample.

Franchisees More Aggressive Spenders

Increase Decrease Maintain Not sure0%

10%

20%

30%

40%

50%

60%54.9%

3.3%

38.5%

3.3%

Franchise businesses intend to increase ad spend by 51.6% over the previous year, which is higher than average among businesses in our survey.

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Franchisees Digital/Online Media Percent of Overall Ad Budget

Last 12 Months Next 12 Months0%

10%

20%

30%

40%

32.4%34.3%

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Franchisee Digital Presence

Franchisees spend 66% more for their online presence than the average SMB in our survey.

Higher use of paid search and listings Online properties are variegated and robust They prefer DIFM over DIY when it comes to the upkeep and

management of their digital presence More than 80% pay outsiders to update their properties Franchisees who use videos (including YouTube) hire a

professional and prefer custom over standard stock video. Use of product content to build awareness and SEO is

aggressive: more than just on page optimization. Building SEO is done through a mix of sources: Listings, blogs,

like buttons, reviews and tweets are ranked as the top activities. $0

$10,000

$20,000

$30,000

$40,000

$50,000

$41,376

Ann

ual S

pend

Current properties:

57% Website54% Facebook Page53% Google Plus Page49% Landing Page

Future properties:

31% Landing Pages 31% Other Social Sites30% Facebook30% LinkedIn

Digital Budget

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ook

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Email

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ook

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Online

Dea

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Mob

ile A

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Dir.

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You T

ube

Twitter

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Cou

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Ban

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isplay

Mob

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earc

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Mob

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eals

0%

20%

40%

60%

80%

65%

43%39%

32%30% 30%

28% 26% 26%22% 22%

20% 19% 18% 18% 17% 15%

S11- Advertising Media Used for Advertising/Promotion s\ Sample Size = 91

Digital Media Used By Franchisees

Digital adoption, especially emerging products like social and mobile, is higher than the average SMB in our survey. And there’s still plenty of room for growth.

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Replies to Unfavorable Comments

Like Button (or Similar)

Email Marketing

Claim Listing on Manta or Merchant Circle

Tweets

Pay per Call

Tries to Change Unfavorable Comments

Blogs

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

14.3%

23.1%

25.3%

24.2%

18.7%

26.4%

31.9%

28.6%

60.4%

58.2%

53.8%

48.4%

45.1%

40.7%

40.7%

37.4%

Don't have, likely to add next 12 months Currently have

Franchisee Online Marketing Activities

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Yes

No, likely next 12 months

No, and not likely add next 12 months

Not sure

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

78.0%

11.0%

9.9%

1.1%

Franchisee Monitoring Customer Comments

78% report they monitor online customer comments. Just over one-half of these reporting they use a monitoring service that’s part of a larger bundle of paid online services.

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Haven't heard of it12%

Heard of it; Don't know much16%

Learned about it; Don't use16%

Currently Using55%

Tried and Stopped 1%

Franchises are using mobile marketing but there’s lots of room for growth.

Source: BIA/Kelsey

Figure 1. Franchise Use of Mobile Marketing

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Don't use but likely to in next 12 months

Don't use, and not likely to in next 12 months

Not sure

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

42.9%

35.7%

21.4%

Figure 2. Franchise intended use of mobile marketing

Franchise use of mobile marketing will pick up: Now is the time

Source: BIA/Kelsey

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What’s Next: The Post-PC Era (not just cell phones)

http://www.youtube.com/watch?v=9c6W4CCU9M4&feature=player_embedded

http://www.youtube.com/watch?v=t3TAOYXT840&feature=player_embedded

Questions and Comments:

Michael Boland, Senior Analyst, BIA/[email protected]


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.

Boland ifa presentation

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