LSA15: State of the Association (Neg Norton)

State of the Association

Neg NortonPresident, LSA

WHAT IS DRIVING

LOCAL?

Today change is the only constant

400 Years of Print 48 Years

22 Years

of Digital

PAY TECHNOLOGY

Paper banknotes first appeared in CHINAduring the

In 1913, the U.S. Federal Reserve established the

gold-backed dollar and in 1958 the first versions

of AMEX and Visa were issued.

IN 1997, MOBILE

COMMERCE WAS

FIRST INTRODUCED

BY COCA-COLA

There has

been an

explosion in

changing

technology

from mobile

payment

apps and

wireless,

contactless

payment over

the past 10

years.

Today mobile payments make up

a $50 billion market that is expected

to jump to $142 billion by 2019

800s

40% of consumers

used a mobile payment

application in the past year

UP FROM 8 PERCENT IN 2013.

PAPER MOBILE

A MOBILE WORLD

60% of consumers

use mobile devices to

find information on local

products and services

52% are “on-the-go”

Source: Local Search Association, “The Mobile Fanatics- How Mobile is Transforming Local Shopping,” 2015.

But also a local one

18%

35%34%

13%

22%

38%

30%

10%

Every time Often Sometimes Never

2014 2015

How often do you use your smartphone while shopping in

malls, grocery or retail stores?

+11%

+9%

54% look for deals in store.

51% compare prices in store.

39% look at reviews in store.

Source: Local Search Association, “The Mobile Fanatics- How Mobile is Transforming Local Shopping,” 2015.

Source: 1 Local Search Association, “The Mobile Fanatics- How Mobile is Transforming Local Shopping,” 2015. 2 Vision Critical 2013 review of internet/client data +6,000 consumer “interviews,” IBM survey 2014. 3 Thrive Analytics, 2014.

59% of consumers have been

influenced by social

media posts while

shopping locally.2

70% of consumers will share

location information if

they get something of

value in return like a

deal/coupon.3

Mobile influences local purchasing decisions

55% of smartphone owners have tapped/clicked on mobile ads while searching for local products/services.1

Today, over half of every retail dollar spent is influenced by digital.

~54% of all U.S. retail sales will be influenced by digital media in

2015.

Nearly, 30% of all U.S. retail sales will be influenced by mobile in 2015.

$325 Billion*

$1.5 Trillion*

E-Commerce

Sales

Digital

Influenced

Sales

$325 Billion*

$1.5 Trillion*

Source: *Forrester Research, “Web-influenced retail sales forecast” 2015.

Critical trends impacting local

Mobile device usage

and media time

Mobile payments and

digital wallets

Connecting the digital

and physical worlds

Location goes indoors

Location is the new cookie

(for mobile targeting)

Social media impact on

consumer purchase behavior

World of wearables

Personal assistant: mobile

successor to search

Internet of things

Operational and

transactional

services for SMBs

Rise of resource

sharing

1

2

3

4

5

6

7

8

9

10

11

WHY DOES

LOCAL MATTER?

The impact of local on the US economy

Small firms account for 63%of net jobs created.

Source: United States Census Bureau

SMBs (<500 employees)

employ 56 Million people.

Businesses with <20 employees

employ 20 Million people.

Represent a significant portion of

private sector payrolls.

500 employees or less 48.5%

100 employees or less 34.5%

20 employees or less 17.9%

The 781,794 franchised small businesses in the U.S.

account for 40% of all retail sales and provide jobs for

some 8 million people.

The 24 million

small businesses

in America

account for

54% of all

U.S. sales.

Purchasing happens near home

Roughly 70% of the

nearly $18 trillion US GDP is

driven by consumer spending that occurs within 20 miles of home or work.

69% of mobile consumers

expect businesses to be within 5

miles or less of their location and

approximately 10% expect

businesses to be within 1 mile or

less of their location

Consumers will travel roughly

17 minutes to

shop and purchase products.

Dollars spent on local marketing are expected to rise with significant increases in mobile & social.

Utilizing location technology & data will become more important

Varied set of use cases, categories

and industries that can benefit from

indoor location:• Retail stores/malls

• Entertainment venues, casinos, amusement

parks

• Airports

• Stadiums and arenas

• College campuses

• Hotels

• Hospitals

• Museums

• Others

**Source: Macy’s

Macy’s decided to roll out iBeacons

in all its 4,000 locations

Targeting and performance will improve

Source: Local Search Association, January 2015.

HOW LSA HELPS

LSA Insights

LSA insights is the first third-party tool that provides broad campaign benchmarking capabilities across media types. It also offers the unique ability to drill down by industry vertical and market to assess ad performance. MONICA HO VP OF MARKETING, XAD

If I had a tool like this two months ago, I would

have change the way I pitched a few potential

clients. I think we could have got them with

some of this data you’ve shown me today.

MYLES BERGH, VP CLIENT STRATEGY,

MICHAELS WILDER AGENCY

The team here at Linkmedia 360 has found LSA’s

reports and insights to be extremely helpful in

supporting our new business efforts and proving

value across multiple media channels.

RENAE DABNEY, SVP, LINKMEDIA 360

For too long, the local media rep hasn’t had all the

necessary data to make a convincing argument to their

prospect or customer as to which media to invest in.

Now, with LSA Insights, the local media rep can build a

more compelling case and help earn the trust that’s

required to cement long term relationships.

NEAL POLACHEK, INDUSTRY ADVISOR, BUZZBOARD

Keyword Searches within Tax Preparation Heading

Co-Op

This sale would not

have happened, but

for the Co-Op dollars

available to the

customer.

A San Francisco consultant utilized a paint brand of Co-Op to

sell a $11K YP Direct Mail program.

This sale would not

have occurred without

Co-Op.A YP Media Consultant in PA used Co-Op to prospect new

accounts. After finding a comic brand that Co-Op’d, he

contacted brand retailers and one of them purchased an

Enhanced Mobile Targeted using his Co-Op funds.

Total bills

reviewed in

2014: 6000+

publisher liability

EPR

advertising regulation

privacy

sales tax on marketing

services location trackingAD EXPENSE DEDUCTIBILITY

opt

out

DIS

TR

IBU

TIO

N

PUBLIC POLICY

Research program

Q1 Research

Topline Local Media Tracking Study Report

25 Mobile Heading reports from LSA

Top PYP & IYP Heading Report

Local Media Tracking Study Annual Review Report

Local Media Tracking Study Pocket Piece

183 PYP/IYP Heading Reports

Mobile Fanatics Report

SMB report

Comscore MobiLens and TabLens reports

Q2 Research Scheduled

Benchmarking Survey Refinement

ISS Reports to Review (183)

Last Mile Advertising Heat Maps

9 Point Heading Reports (255)

LSA Insights Trend Analysis

SMB Business Segment Report

Consumer Report on Cross Media Usage Patterns

SMB trends

Only 35% can accept

mobile payments.

40%

37%

33%

21% Not Enough Time

Not Enough Knowledge or Expertise

Ad Budget Not Large Enough

Not Enough Resources to Hire Dedicated Personnel

SMBs Biggest Challenges with Online/Digital Marketing

56% stated they update their

websites every six months or

longer.

Percentage of SMBs with a Website by Business Size

60% have no strategy

to market to mobile

60% of SMBs

don’t utilize tools to

measure

performance or help

them manage their

business.

66% don’t have a way to

capture online reviews.

60% stated they have

websites that aren’t

optimized for mobile.

55% of

social media

pages are

updated

monthly or

longer.65% of business listings are

updated quarterly or longer.

Current providers are falling short

25%

30%

45%

55%

60%

Other

Too Many Errors Made

Price is too high for the product/service

Poor Service Levels from Providers

Poor Program Results

Reasons for not being satisfied with current media providers (Scores 0-6).

Source: Thrive Analytics, “Local Pulse Survey”. January 2015.

What providers can start & stop doing

WHAT CAN PROVIDERS START DOING

TO BETTER SERVE SMBS

WHAT CAN PROVIDERS STOP DOING

TO BETTER SERVE SMBS

Source: Thrive Analytics, “Local Pulse Survey”, January 2014. N= 1,008 Small Businesses; Open-ended question used text analytics to create word cloud of top responses.

ad to action AWARDS

Anne MercoglianoHead of SMB

Marketing, Twitter

Christian WardEVP,

Partnerships, Yext

Janet DisbrowVice President,

National Sales, YP

Jeff FagelCMO, G/O Digital

Lutz FingerAuthor of "Ask, Measure,

Learn" & Director Data Science and

Engineering, LinkedIn

Jeff GlueckChief Operating

Officer, Foursquare

Monica HoMarketing,

Infrastructure, xAd, Inc.

Steven JacobsDeputy

Editor, Street Fight

Shreya KushariSVP, Search Marketing

& Performance Media, DigtasLBi

Duncan McCallCEO and Co-

Founder, PlaceIQ

David MihmDirector of Local Search

Strategy, Moz

Faith MurphyDirector, Channel

Management & Reseller Network, Yahoo

Trevor NadeauManaging Director –

EMEA, BuzzBoard, Inc.

Elise NeelHead of

Sales, MapQuest

Manish PatelCEO,

Where 2 Get It

Nathan PettyjohnFounder & CEO, Aisle411

Shelby RenoMarketing Instructor & Former

Director of Marketing & Communications,

TWO MEN AND A TRUCK

Sharon RowlandsCEO, ReachLocal

Mike VaccaroChief Revenue

Officer, Digitaria, a JWT Company

STATE OF THE ASSOCIATION

Growing and diverse membership

300+ members 33 new members already in 2015

LSA Board of Directors

Ben WoodDirector of Channel Sales Americas

Google

Sharon SweeneySecretary/Treasurer

President, Fairway Group

Bill DinanChairman, LSA

President, Telmetrics Inc.

LSA Board of Directors

Andrea CancroEVP and Managing DirectorStarcom MediaVest Group

Bill DinanPresident

Telemetrics Inc.

James V. ContinenzaExecutive Chairman and

Acting President and CEOThe Berry Company

George HannaEVP, Chief Legal Officer &

Board SecretaryYP Holdings LLC

Ben WoodDirector of Channel Sales

AmericasGoogle

Kevin JasperCEO

hibu US

Jed NachmanSVP of Revenue

Yelp

Joe WalshPresident and CEO

Dex Media, Inc.

Katy HunterSenior Director of Partner &

Channel MarketingMicrosoft

Michael Fordyce CEO

NinthDecimal

Norm HagartyCEO and Managing

PartnerDAC Group

Sharon RowlandsCEO

ReachLocal

Sharon SweeneyPresident

Fairway Group

Julien BillotPresident & CEO

Yellow Pages Digital & Media Solutions

Eric WebbPresidentMarquette

Group/USMotivation

State of LSA

2014 financial results: Net income of ($132,000)

Reserve fund: $8.9 million

2015 budget anticipates revenues and expenses: $7.4 million

Thank youContact me:

214-696-5768 (office)

[email protected]

@negnorton