57 Channels (And Nothing On): Marketing Channel Overload

Greg SterlingSterling Market Intelligence/Opus Research

May 3, 2011

About Me

• “Internet analyst-to-the-stars”

• Jobs: lawyer, editor, startups, analyst, blogger

• Coverage: search, directories, “social media,” mobile, multi-channel shopping, SMB advertising, etc.

• Twitter: gsterling

Out and about with Brangelina

Cast of Black Swan

With the Gleeks

More channels, more tools than ever = more noise and confusion

• What’s real? What’s working? • What’s cool but not worth using? • “Must have” vs. “nice to have” • What would I use?

Which Way to Go?

Which Best Describes Your Feeling?

Last year: • “Real time search”• Social media• Mobile

Revisiting Last Year

Some of these trends were just emerging or speculative. More clarity this year on what’s going to “stick”

Unfortunately you need to do a range of things online:

• Search/SEO• Social/reputation • Mobile• (ILS/Verticals & Craigslist)

Search + Social + Mobile

Deals Now the Hot Topic

How ‘Marketing Savvy’ Are You?

How savvy do you consider yourself when it comes to online marketing and advertising? • Not savvy at all• Not very savvy• Neutral/middle• Reasonably savvy• Very savvy

Very savvy 7%

Reasonably savvy 28%

Neutral: neither savvy nor un-savvy; 34%

Not very savvy 19%

Not savvy at all 12%

How savvy do you consider yourself when it comes to online marketing and advertising?

Source: Opus Research 2/11, n=8,540 US small businesses (drawn from MerchantCircle member database)

Self-assessment: “Neutral” and “not savvy” 65% of respondents

How ‘Marketing Savvy’ Are You?

Stuff That’s Cool but (Maybe) Not Relevant

8.5 million users but probably not your residents

They have to download software before they can use it

NFC: Someday, but not today

Search/SEO: Basic Must Have

Search Still Central to User Experience

Increasingly so Is Mobile ‘Search’

Mobile Search Ads & Click to Call

User initiates call on smartphone with a single click

PC Search Market Share: March 2011

Google MSFT + Yahoo Yahoo Bing Ask AOL

65.7%

29.6%

15.7% 13.9%

3.1% 1.6%

Source: comScore (4/11)

Organic Mostly about Verticals

Most of the organic links on the first page are “verticals”

• Apartmentguide• Apartments.com• Rent.com • Forrent.com• Trulia• Yahoo

One Owner on Page 1 of Google

In 8th position, “below the fold.” The only property directly listed on page 1 of Google

You can also be more visible with paid-search ads

Search Directly for “Archstone Apartments”

Place Page for “Archstone Apartments”

New Bing Business Portal

Online Reputation

Reputation Monitoring: Nearly a Must Have

Reputation Tools Track Mentions & More

A lot of vendors offering tracking/monitoring tools: • Enterprise tools such as Radian6• Marchex• Vendasta/StepRep• YellowBot• Chatmeter• Needium (social lead generation)• MyRepMan• AmIVisible• RatePoint• Yext

Another Analytics Dashboard

Social Media: It’s Unclean, but Now a Must Have

• Facebook

• Twitter

• YouTube (helps with SEO)

• Flickr

• Blogging

• Online reviews

• Sharing generically

• Lots of mobile: SoLoMo

What Do We Mean?

Source: AMEX/Network Solutions 2/11 (n=400 US small businesses who did some form of online marketing )

Word

of mouth

Search engines/i

nternet

"Adverti

sting"

Yellow pages

Newspapers/

magazines

Storefront

Other

82%

66%

37%

23% 23%17%

21%

How Do Customers Find You?

Source: AT&T SMB survey, 2011 (n=2,246 US small businesses between 2 and 50 employees)

Why Have a Facebook Page?

Source: AT&T SMB survey, 2011 (n=2,246 US small businesses between 2 and 50 employees)

Perceived Benefits of Social Media

Is Facebook for Acquisition or Retention?

It can be a great CRM/customer service tool and way to communicate with current (or prospective) tenants

Facebook Ads: Local/Demographic Targeting

Source: Webtrends Facebook Advertising Report 1/11

Costs Going Up, Clicks Down

• 66% of SMBs said they updated Facebook at least weekly

• 63% of SMBs feel it has helped make customers more loyal

• 56% feel it has taken up more time than they expected

• 25% of SMBs estimate their investment in social media has made a profit while 15% estimate they have lost money; the remainder (46%) feel they broke even.

• Often social media has fallen short of expectations (36%) vs. exceeded expectations (9%)

Source: Network Solutions, 2011 (n=500 US small businesses)

Mixed Experience with Social Media

37Source: GSMA UK, 12/10

Face

book

Google

Yahoo

AccuW

eather

Microso

ftBBC

Vodafone

Samsu

ng

Orange

eBay

2523

702373 240 127 109 79 64 57 48

Top UK Mobile Sites by Time Spent (monthly millions of minutes)

Facebook Most ‘Engaging’ Mobile Site

• FB: 250 million active (daily) mobile users

• Top iPhone app/Connect for Mobile/single sign on

• Places/Deals

• Could extend FB ads to mobile

Source: Facebook stats

Facebook: Sleeping Giant in Mobile

Mobile: Yes, a Must Have

Mobile Overview

• Mobile the ubiquitous “second screen”

• You must have a mobile-optimized HTML site

• Mobile app offers better experience but optional

• Mobile ads perform well (see also C2C)

• Right now all about iPhone + Android (forget everything else)

• Tablets gaining

Source: Pew Internet & American Life, Data 2006-2010

PC Sales Flat-to-Declining

42

Source: IDC 1/11

• Q4 smartphone shipments: 100.9 million units

• Q4 PC shipments: 92 million units

Smartphones Outsold PCs in Q4

Mobile Quick Stats

• 36% have smartphones; 50% coming early next year

• 89% of smartphone users have an immediate need when they search for something on mobile phones

• 75% of mobile users act “within a few hours” of a search

• 33% to 53% of mobile searches have local intent

• After local search on mobile: 77% contacted a business, 44% purchased

• 49% who saw a mobile ad took some sort of action (click, call, website visit, later PC visit, purchase)

Source: Nielsen 4/11; Google Mobile Moment Study released 4/11, Microsoft 12/10, Google 2010

Tablet Apps Growing

• Tablet app is “nice to have”

• Browser can render a conventional site

• No flash

Source: Google/AdMob, March 2011 (n=1,430)

Tablets Mostly Used at Home

Source: Google/AdMob, March 2011 (n=1,430)

Tablets Impacting PC Usage

Source: Google/AdMob, March 2011 (n=1,430)

People Doing Everything

48

Source: Performics n=502 3/11

Mobile Internet/Search Growing Fast

“Mobile search is definitely going to surpass desktop search,” said Scott B. Huffman, who works on mobile search at Google and leads its search evaluation team. “The lines will pass, and I think they’ll pass before anyone thought they would.”

Quoted in NY Times 4/25/2011

Source: Google, March 2011

Google: Mobile Queries 15% and More

Categories Searched by Smartphone Users

Source: Google-Ipsos Q4 2010, n=5,000

Source: Opus Research 10/12 (n=1,003)

1. Restaurants/Bars2. Banks and ATM locations3. Hotels/motels4. Gas stations5. Mobile phone stores/services6. Clothing stores7. Shopping malls8. Nightclubs9. Grocery stores10. Video/DVD sales and rentals

Top Local-Mobile Categories

Mobile Phone the Ubiquitous Second Screen

Source: Performics 3/11, Yahoo 4/11

Market Share % Oct 10 to Mar 11

GoogleYahoo!bingAsk Jeeves

Source: StatCounter 4/11

Google Mobile Search Share: 95%+

Source: Efficient Frontier client data, March 2011

96.8%

3.2%

GoogleBing/Yahoo

Google Mobile Paid Search Share

Source: IDC 11/10

59.0%

8.4%

6.8%

5.6%

4.3%

3.7%1.3%

0.8%10.0%

GoogleAppleMillennial MediaYahooMSFTJumptapNokiaAOLOthers

Mobile Ad Revenue Distribution

5.8%2.2%

2.4%4.5%

1.7%

83.4%

Describe your mobile marketing efforts today:

We developed a mobile website

We use SMS-based marketing

We have an iPhone or Android "app"

We're buying mobile search ads (e.g., Google)

We're using/buying mobile coupons

We're not doing any mobile marketing or advertising

Mobile Marketing Happening?

Source: Opus Research 2/11, n=8,540 US small businesses (drawn from MerchantCircle member database)

1 2 3 40.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Rank

CTR

PPC Ads in Mobile: Position Matters

Source: iCrossing 2/11

Click to Call

• 500K advertisers

• Response rates that are 5% to 30% better than other AdWords CTRs in mobile.

• Phone/location extensions effectively automate these ads

Source: Google

1. Optimize my site(s) for search; use paid search (see Kenshoo CCO)

2. Claim my Place Page, Yelp listing and BBP3. Use Craigslist diligently4. Be present in relevant ILS/verticals (organic/ads)5. Set up a Facebook Page (Twitter)6. Build a mobile HTML site with listings (consider also

for payments and service issues)7. Track mentions/reputation8. Consider mobile ads (search, PPCall)9. In my spare time experiment with other stuff

So What Would I do?

• QR Codes or NFC• Foursquare and check-in services• Daily deals• How to integrate all your marketing efforts• How to track all your marketing efforts

… Ran out of time

Stuff I Haven’t Really Discussed?

Questions?