State of Local: Then & Now - Greg Sterling, Local Search Association #LSS2016

STATE OF LOCAL: THEN & NOW

GREG STERLINGVP Strategy & Insights – LSA@gsterling

#LSS2016

#LSS2016

About LSA

• LSA is a non-profit trade group based in Michigan

• 300+ members in 27 countries• Members include RIO, Google, YP, Yahoo,

Yelp, Microsoft . . . • Focus on local marketing/LBS – enterprise

and SMB

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• LSA, Search Engine Land

• Impact of digital on offline consumer behavior

• Following local since Y2K

• Twitter: @gsterling

About Me (Semi-Boring)

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• Appeared in People Magazine in college

• Co-wrote an independent film that was produced last year

• Worked for the law firm that represented OJ before “The People vs. OJ Simpson” lawyers took over

• Impersonations: Yoda, Pee Wee Herman

About Me (Fun Facts)

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Local Search

Yesterday Today Tomorrow

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Evolution of Local

• From search to “assisted discovery”• New user experiences/assistants• From directories to marketplaces• ROI: from speculation to actual measurement

(O2O, transactions)

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What Is Local Search?

“Local'search'is'the'use'of'specialized'Internet'search'engines' that'allow'users'to'submit'geographically3constrained3searches3against3a3structured3database3of3local3business3listings.”

;;Wikipedia''

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Inferred/Expressed Intent

“20%'of'[desktop]'searches'on'Google'are'related'to'location”

;; Google,'4/10

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Ambiguity re Intent

One;third'of'mobile'searches'are'local

;; Eric'Schmidt'9/10

40%'of'mobile' searches'are'local

;; Marissa'Mayer'5/11

30%'of'mobile'searches'are'

“related'to'location”

;; Omid Kordestani7/15

10/12:'50%3of3mobile3search3is3local

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“Local'content'defined'as'searching'for'information'on'maps,'movies,'business'directories'or'restaurants.”

Specific Site Categories

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Ranking on the SERP

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Only Part of the Picture

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Broader Construct

How'consumers'use'digital'media'to'help'make'purchase'decisions'ultimately'fulfilled'offline/locally

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San'Diego'Mexican'food

Search = Query in a Box?

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“Search” = Directional Intent

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Local Search = Online-to-OfflineMost Online Research Culminates Offline

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Consumers Have Always O2O’d

Online influencing offline – think reviews

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Follow the Money

Source:(US(Commerce(Department,(various(US(government(agencies,(World(Bank(

GDP ~$18T

70% of consumer spending Within 15 – 20 miles of home/work

92% of retail spending in stores

$4.8T (stores) vs. ~$300B (online) in 2015

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Internet Reach Extended

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

Source:(Google/Ipsos consumer(survey(data(2/16

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Google, Facebook, xAd, ThinkNear, Twitter, YP, Placed, Factual, NinthDecimal, Verve, UberMedia, SITO Mobile, Go2Mobi . . .

Mobile Enables “Location Analytics”

80%

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From Funnel to Pretzel

Consumer funnel has always been something of a fiction

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Multiple Sources, Devices

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

Local consumer purchase path involves multiple sites/sources – and devices

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Less than 40% Start with “Search”

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Mobile Now the Primary Device

Source: xAd 2015 Mobile Path to Purchase report based on consumer survey data

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Especially for Local

Source:(Thrive(analytics/LSA(2015

Primary device used for local information searches

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All Mobile Queries “Potentially Local”

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

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

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Location History: Real World Data

80%

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New Kinds of “SEO” (LBO/PVO)

80%Location3Based3Optimization3(LBO)3– against3place3visits,3even3sales

Audience3targeting/validationOffline3to3online3retargeting3

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From SEO to Data Optimization

95%3of3time3spent3in3apps

Source:(Yahoo/Flurry((2016)(

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M-Search Increasingly App-Like

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Paid Dominates the Screen

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Mobile Pages Boosted

“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 3/16/16AMP:3Accelerated3Mobile3Pages

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AI + NLP + VA + UI = New Search Experiences

Source:(MindMeld,(October(2015,(n=1,800(US(smartphone(users

Momentum: 60% started using w/in last 12 months

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Screen-Free Search

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Connected Cars

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New “Realities”

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More Channels, Fragmentation

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Messenger: Assistant/Search Substitute?

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

“Conversational Commerce”

#LSS2016 Taco Bell Tacobot

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Conclusions/Takeaways

• Mobile centric consumer• More paths for “local discovery” • AI/bots/Assistants• More fragmented user behavior, new UI/UXs • From “Local SEO” to local data syndication• Location analytics and closed loop tracking

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Thank You!

@gsterling

greg.sterling@gmail.comgreg@theLSA.org