New digital divide polachek london
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The New Digital Divide SMBs At Risk Neal Polachek Industry Observer Advisor - vSplash Local Social Summit 2012 4th Annual, London Exploring the IntersecHon of Local, Social and Mobile
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vSplash’s SMB DigitalScape data indicates that literally millions of SMB websites are not optimized to perform in what is increasingly a “mobile” world. Recent Google data suggests that consumers are quite fickle and their patronage of SMBs will wane if they cannot experience the SMBs digital presence via their Smartphone and tablets.
Transcript of New digital divide polachek london
The New Digital Divide SMBs At Risk
Neal Polachek Industry Observer Advisor - vSplash
Local Social Summit 2012 -‐ 4th Annual, London
Exploring the IntersecHon of Local, Social and Mobile
U.S. Smartphone adopHon growth will begin to decline By 2016, 50% of the world will have Internet 1.6B Smartphone unit sales in 2016 Today, 50% of U.S. mobile subscribers are on a Smartphone
A World Of Global “Mobile” ConnecHvity
"It is dangerously destabilizing to have half the world on the cuYng edge of technology while the other half struggles on the bare edge of survival.” Bill Clinton
A Widening Canyon
– Staples – displaced Campbell Tolstoy staHonary stores – Best Buy – displaced Pacific Stereo electronics stores – Macy’s – displaced Rudnick’s clothing store – CVS – displaced SuperDrugs drug store
Why? Scale for buying, technology implementaHon and adverHsing and markeHng drive lower prices
The First “Big Box” Movement
Current SituaHon
• Today, independent businesses face unprecedented compeHHon from larger chain compeHtors, internet merchants and franchises that enjoy naHonal or internaHonal branding power and major economies of scale. As a result, community-‐based businesses comprise a smaller porHon of our economy than ever before.
Source: American Independent Business Alliance
The Next Big Box Event
• Aspen Dental – displaces David Freeman, DDS • Your Mechanic – displaces North Bay Motors • Massage Envy – displaces Darlene’s Massage • ServPro – displaces Marshall Plumbing • The Joint – displaces Corsano ChiropracHc
Why? Independent SMB is incapacitated by the complexity of digital markeHng, adverHsing and
engagement opHons
The Core Issue
Digital SoluHons -‐ Difficult to understand, implement –
data driven ROI
TradiHonal Media -‐ Simple to understand and buy -‐ vague ROI
Confusion FrustraHon
2010 2102 2014
SmartPhones and Tablets • Consumers are racing to use digital devices – iPads, smartphones, laptops for “discovering and finding”
• Consumer experience is subopHmal – too few SMBs have fully funcHoning web presence across digital: – Mobile – Social – Local
Market CondiHon -‐ Consumers
• SMBs are skepHcal of all of the local sales channels – they are all “selling”
• Dizzying number of markeHng, media and commerce providers knocking on the doors of the SMBs
• Incapacitated and overwhelmed by the products and features
2005 2012 2014
Media OpHons
Media Used
Market CondiHons – Merchants (SMBs)
2005 2010 2012 2015
Paths to SMBs
Use by SMBs
Increasing Gap
SMBs Not Keeping Pace with Consumers
SMBs MulH-‐locaHon NaHonal
Digital Re
adiness
Low M
edium
High
An Widening Canyon
Driving Business Success
Low Web Presence High and Medium Web Presence
41% More Growth
Source: Boston ConsulHng Group; 2012
vSplash Overview • A global provider of digital media and
commerce soluHons to SMB and local markeHng and commerce aggregators.
• Team of 325+ cerHfied resources – Managed services and soluHons – Plalorms and tools -‐ BuzzBoard – Data and data analyHcs
• Producing over 10,000 forms of digital media monthly
• FaciliHes in US (New Jersey) and India • Advisors include Neal Polachek and
Mark Canon
Directory Publishers, Newspapers,
Radio, Online Pure Plays, Local TV, SMB Aggregators
SMB DigitalScape ObjecHve Deliver ‘Intelligence on Scale’ based on empirical evidence Build big data about the state of SMB digital development across the SMB value chain: Media Commerce SoluHons Affirm the market opportunity and potenHal of delivering digital services and soluHons to SMBs
Groups Of Parameters
• Op3mized for a great user experience and for the search engines and that my site follows the global standards and best prac3ces
Site Metrics
• Op3mized for being found by the major search engines and I rank high with the search engines
Search
• Op3mized for local search send right signals to search engines and users that "I am a local business”
Local
• Op3mized for engaging with my customers via social media plaCorms that consumers use such as Facebook and TwiEer and that consumers are engaged and providing reviews and ra3ngs about my business
Social
• Op3mized so that my customers can find me on their smart phones, tablets and other mobile devices and I offer a compelling mobile user experience
Mobile
• 200+ M SMBs in 50 Countries • Global GDP – $20T
• 30% with a “website”
• At best 15% func3oning digital presence – or just 10M
Today . . . And . . . Tomorrow
Annual Opportunity to Upgrade, Build and Deploy Fully FuncHoning “Webpresence” = $19B
2012 • 200M +/-‐ SMBs in 50 countries
• Global GDP – $25T
• 45% with a “website”
• As many as 32% fully func3oning digital presence – or nearly 30M
2016
SMB DigitalScape A Global View of How Much
Opportunity?
Market Level Analysis Where is the Opportunity?
Customer Level Leads & Audits Which Specific Customers or
Prospects Represent the Biggest Opportunity?
$50B of opportunity iden3fied
$1M -‐$100 M of opportunity iden3fied
$3,000 of opportunity
20M Businesses Analyzed* 2.1M US Websites Audited
* As of Q4 2012
Data and Data AnalyHcs
100
110
Parameters
4
10
LisHngs (millions)
717
2,016
URLs (000's)
A Growing Data Set (March v. Aug)
Quick SegmentaHon
Has a mobile
opHmized website and most of the
key elements
Don’t have a mobile opHmized website and missing at least 2 key elements
Don’t have a mobile opHmized website and missing
more than 5 key
elements
Website built by
brother in-‐law’s
nephew’s friend for high school project
No discoverable
web presence
A UK View – All SMBs Raring To Go
3% At the Start Line 8%
Leaving Pit Alley 22%
In the Pit 27%
Outside Looking In
40%
Diving Deeper into the Data
0 to 1 Second 1 to 2 Seconds 2 to 3 Seconds 3 to 4 Seconds 4 to 5 Seconds
5 To 10 Seconds 11 To 20 Seconds 21 To 30 Seconds 31 To 40 Seconds 41 To 50 Seconds 51 To 60 Seconds
More Than 60 Seconds
60%
40%
Slow Sites Cause Poor UX
eCommerce – Not Yet
5
95
eCart
No eCart
Many Missing LocaHon in Meta Title
11
89
Yes
No
8.1% 15.9%
18.8% 22.3%
21.3% 8.9%
3.3% 1.2%
0.3% 0.0% 0.0% 0.0%
unranked 0 1 2 3 4 5 6 7 8 9
10
Most Sites Lack Any Ranking
50
22
0
10
20
30
40
50
60
Self Reported Reality
BIAKelsey – LCM Wave 16
Facebook – PercepHon v. Reality
98%
Few SMBs Able to Leverage Mobility
SMBs are increasingly at risk of being lex behind as consumer adopHon accelerates
"It is dangerously destabilizing to have half the world on the cuYng edge of technology while the other half struggles on the bare edge of survival.” Bill Clinton
So A Widening Canyon
So – Remember The Core Issue
Digital SoluHons -‐ Difficult to understand, implement –
data driven ROI
TradiHonal Media -‐ Simple to understand and buy -‐ vague ROI
Confusion FrustraHon
CompeHHve Map High Cost o
f Sales Low
Low Customer Engagement High
Go-‐Daddy 1 to 1
Hibu UK
ReachLocal
High Margin
Product Map High Ch
urn
Low
Acquisi3on Centric Reten3on Centric
Low LTV High High M
argin
Low
YP
SEM
Email & Msgs ID and Social
Mgt
Sched’ing
OLM
Deals
Websites
SEO
SoluHon Map High Ch
urn
Low
Acquisi3on Centric Reten3on Centric
Low LTV High High M
argin
Low
YP
SEM
Email & Msgs ID and Social
Mgt
Sched’ing
OLM
Deals
Websites
SEO
Channel ImplicaHons High Ch
urn
Low
Acquisi3on Centric Reten3on Centric
Low LTV High High M
argin
Low
UndifferenHated Sales Channel
VerHcal Centric Sales Channel
Shix From Media to SoluHons -‐ ARPU
250 1000
2500
0
1000
2000
3000
4000
5000
6000
Print YP Print YP + IYP PYP + IYP + Digital Products
PYP + IYP + Digital SoluHons
Service
Media 2500
2000 2500 3500
2002 2008 2012 2016
SMB Digital Readiness -‐ 2012 Minim
al Limite
d Best Prac3ces
SMB ParHcipaHon and Spending
SMB Digital Readiness -‐ 2016 Minim
al Limite
d Best Prac3ces
SMB ParHcipaHon and Spending
Summarizing Consumer adopHon of digital engagement is far out pacing SMB transformaHon Paradox of choice – incapacitated to make a choice The local merchant DID NOT choose XYZ line of business to be a digital markeHng guru – they chose to be an XYZ guru Someone has to raise the “trust” factor and build soluHons not products which will lead to a more sustainable and profitable customer relaHonships
