© Constant Contact 2015

Playing to the SMB AdvantageHow small businesses are changing with the game and adapting to the advertising landscape

© Constant Contact 2015

Doug ThompsonGlobal PartnershipsConstant Contact@constantcontact facebook.com/constantcontact

Welcome

Setting the stage…

1. The changing landscape of advertising

2. What assets do small businesses bring to the table?

3. How the game has changed

The changing landscape of advertising

Ad spend follows eyeballs, which are social + mobile.

• Q4 2015 ad revenue: $5.6b• + 57% YOY

Sources: Global Web Index Social Summary, Q4 2015; eMarketer 2015; Facebook Q4 Results

mobile will account for 63% of total

digital spending in 2016

Priorities have shifted

Source: BIA/Kelsey Local Commerce Monitor Wave 18, Q2 2015

12-Month Marketing Priorities (Retail Small Businesses)“Very high” or “Extremely high” priority

Does this work for small businesses and organizations?

Too expensive. Too wasteful.

Too vertical.

Low customersatisfaction.

High churn.

Setting the stage…

1. The changing landscape of advertising

2. What assets do small businesses bring to the table?

3. How the game has changed

How much do I need to spend to make it work?

Does it work?

Do I need a contract? Am I locked in?

Am I advertising in the right place? Who sees my ad? Are they relevant?

Am I wasting money?

Small businesses have doubts…

Small businesses have an advantage.

The relationships they have withcustomers and members.

Two key ingredients for a successful advertising

campaign:

Small businesses have both.

Advances inaudience targeting.

The rise of native

advertising.

The right audience.

A great message.

Two important new tactics:

Small businesses have access to both.

Setting the stage…

1. The changing landscape of advertising

2. What assets do small businesses bring to the table?

3. How the game has changed

Automatic creation of Facebook-ready promoted post and a “Lookalike” audience,

created based on their list

Where the magic happens

Small business creates content or offer

• Actions taken

• New namesadded to list

Send out via email to their list

The positive cycle

• Create content

• Use own segmented list

• Build targeted “lookalike” audience of potential prospects

• Send content to targeted list, increase exposure

NEW SALE

• New prospects see content, sign up for list

• Small business’ segmented lists are

further refined

HalfMoon YOGA STUDIO

Is it advertising or engagement?

Yes!

Engagement advertising.

Using paid promotional activities to expose a business’ engaging content to an

audience of new prospects.

Setting the stage…

1. The changing landscape of advertising

2. What assets do small businesses bring to the table?

3. How the game is changed

So, what’s next?

Will it work?

Industry CTR for banner ads

< 0.01%

*

Facebook CTR fornational ads

1.12%

Constant Contact CTR for local ads

>2.5%

Source: AGC Insights, March 2015Source: Nanigans, Global Facebook Advertising Benchmark

Report, Q1 2016 Source: Constant Contact, February 2016

Drive engagement…drive business…

Engage

Engagement drivessocial visibility

© Constant Contact 2015

Doug ThompsonGlobal Business DevelopmentConstant Contact@constantcontact facebook.com/constantcontact

Thank you!