LSS'09 Panel Local Content Monetisation

Local Social Summit 2009
Local Content & Monetisation
The View from Europe
Ben Barney
ben@akesios.com
#lss09

Google’s dominance
Google has 70% market share in US
In most European countries this rises to over 90%

Google is a threat from a content perspective eg. News aggregation, 10 (7) pack of local businesses
Publishers response is to resell AdWords or build their own competing pay per click platforms

*The Sunday Times, Hitwise

Social – Big Opportunity
*Estimate – based on 0.8% Qype share in UK, and qype.co.uk received 80k uniques per month

Tapping into Usage

75% of Tweets come from 5% of people

Source: http://www.informationisbeautiful.net/

Tapping into Usage

Only 8% of Tweets are deemed “Good” and RT – worthy.

Source: http://www.informationisbeautiful.net/

Tapping into usage
Local social activity still focused on major conurbations
No critical mass outside of these areas to create a useful service
Source: Qype Blog 12/10/09

Tapping into Usage

Local social activity still focused on limited number of verticals
No critical mass outside of these areas to create a useful service

Source: Yelp Metrics as of June 2009

Effectiveness
10% conversion rate from visits originating from Facebook Ads (StoreQuest Self Storage)
Over 12 months we generated nearly $40,000 in revenue directly from a $600 advertising investment on Facebook. (CM Photographics)
Average campaigns result in CTR of 8 - 12%. Facebook Ads resulted in a 25% CTR. (All Nippon Airways)

Akesios Platform
The Akesios Platform – Making Implementing New Products Easy for Publishers

Summarizing the Opportunity
Google loves Social!
Factors to improve organic ranking for a local merchant
Citations from major data providers eg. Yelp & Twitter etc
Ratings & Reviews; Google and 3rd Party
Video & Photos
Enabling local merchants for social advertising
Opportunities for publishers to sell more 3rd party products to tap into sites who are engaging with the local audience in innovative ways
Publisher and social network content partnerships
Utilise their sales forces to increase content for each merchant.

Panelists
Roland Bryan, Associated Northcliffe Digital
Simon Greenman, European Directories
Joachim Helfer, MüllerMedien
James Thornett, BBC Local

Local Summit2 November 2009
Roland Bryan
Managing Director, Localpeople
Tel: 020 7 752 8466
Email: roland.bryan@and.co.uk
T: www.twitter.com/rolyb77

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What is Localpeople?

Local, issue-based community sites
Users as the primary content creators
Targeted advertising products for local SMEs

s
Localpeopleaims to address a consumer demand for local content in small communities …
Q: What Type of Area are you most interested in receiving local news and information about?
My street
5%
My ward/parish
9%
My village
10%
My town/suburb
36%
My city
18%

Consumer appetite for local online propositions …
… allowing local people to debate / discuss issues that matter locally
Poorly served by news media today

My county
9%
My region
14%
Q: How many people do you think of as living in this local community?
34%
Less than 5,000
5,000 and 20,000
33%
20,000 and 30,000
10%
7%
30,000 and 50,000
9%
50,000 and 100,000
Over 100,000
7%
Q: Is there a single website that you feel provides you with all the local news & information you require?
Less than 5,000
5,000 and 20,000
No
20,000 and 30,000
Yes
30,000 and 50,000
50,000 and 100,000
Over 100,000

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… and a small business need for cost effective, targeted advertising space

2.6m small business advertisers in the UK
Average spend of £2k per year – giving a market opportunity of £5.2bn
Only 7% of spend currently online -- want to be online but do not know where or how
Most of these businesses want local advertising opportunities with low wastage
Few happy with range of local marketing opportunities available today
Localpeople wants to address this opportunity: online, low cost, response focused, low wastage

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So how do SMEs currently spend their marketing budgets?
Marketing Spend Mix in a Typical 20k Town100 = Total Spend in Town
Split of Local Spend, by Media Channel%

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What do we need to do to increase local spend online?
MediaSupply?
Local Advertiser Objectives?
Importance?
Examples

Print
Door-drop
Local sponsorship
Brand Awareness
Competitive Differentiation
Search / Find
Volume Drivers

Low
High
Strategic
Low
Med

Print
Door-drop

High
High

YP / IYP
Google
2.0 Directories
Mobile??

Tactical
High
Low

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Contact Details
Roland Bryan
Managing Director, Localpeople
Tel: 020 7 752 8466
Email: roland.bryan@and.co.uk
T: www.twitter.com/rolyb77

Moving into New Business Models
Simon Greenman, MD Online
European Directories
+44 208 987 8137
s.greenman @ europeandirectories . com

Introduction
Simon Greenman – MD Online, European Directories
European Directories:
2008 €800M local search and lead generation company
Operations in eight countries – Finland, Sweden, Denmark, Netherlands, Austria, Czech, Slovakia and Poland
Have over 700,000 SMB customers serviced by over 2,500 sales representatives
Majority owned by Macquarie.
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Commercial in Confidence

Changing Search Behaviour Consumers
Internet and mobile usage are growing (location based)
Google is main entry to the web
Physical products: looking for a company Vs. looking for a product or service
Services: looking for a solution Vs. looking for a company
Search via verticals and social networks
Content needs to be rich, complete, and comparative
Strategy: generate local commercial search usage from multiple products and in multiple media to sell leads to our advertising customers:
yellow pages, white pages, verticals, IYP, search, SEM, social local… are the products and
print, online, mobile, satnav… are the media – not the business.

Skype – European Directories Strategic Partnership
Announced October 6th partnership with Skype
Objective is to help turn online search for businesses into calls to businesses
The new offering for Skype users:
Skype has 480 million users globally
Those users can now call from Skype directly to participating European Directories advertisers
Using existing Skype Phone Number Recognition (PNR), Skype can recognise specific advertiser numbers on any web page and turn them into free business click-to-call buttons
Users do not need to have “Skype Out” credit to call
For advertisers:
Get access to a huge Skype user base, without changing their telephone numbers
Have an opportunity to differentiate themselves from their competitors to generate greater call volumes.
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Skype – European Directories Strategic Partnership
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New Products - Werkspot.nl - RFP/RFQ Vertical
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request via email / sms
project
accept Y/N
handymen bidding process

Market place for handymen - Projects ‘in and around the house’
Number one in Netherlands
App 4000 subscribers pay monthly fee
Free for consumers
30,000 consumer projects in 2008
Revenue growth - over 100% in 2009
25% EBITDA margin already in growth stage
Plan to roll out into other markets

New Social Local Products – Tupalo.com
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Social local directory sites with large numbers of user ratings and reviews of businesses
Launched in Austria and Netherlands with over 200,000 monthly unique visitors
Will rollout out to other operating countries in Q4
Made a small investment in Tupalo.com to bring more innovation into the European Directories “family.”

Summary
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Our business is Local Commercial Search and Lead Generation – not print or online
Consumer usage behaviour is changing – mobile, search, verticals, social local, content…
European Directories will offer new products on new media to stay relevant to the consumer
Our salesforces and customer relationships are our key competitive advantage. We can monetise both:
Our core products and usage
New products and even 3rd party usage and…
Superior execution of strategy and operations creates the opportunity for future revenue and profit growth.

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Local Social Summit – Museum of Contemporary Arts, London, November 3rd
Local Content & Monetisation – A View from a directory publisher
Joachim Helfer – Business Development Online – Müller Medien

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Strategic decision of the directory publishers in Germany
The local aspect in the growing search business is getting more and more important
This market is dominated by performance-based business models
Global players such as Google, Yahoo and Microsoft rule the market
In the local area they are a threat to media companies, newspaper and directory publishersas well as TV and radio stations
Through a pure integration of 3rd party ad feeds we loose the
direct customer connection
Therefore the directory publishers decided to invest in the future:
Own entity
Own local search engine
Own search technology and index
Own PPC-based ad-platform
Own network of local websites
Own new performance-based products and teams

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The three pillars of success
SALES
TECH
NETWORKS

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Local sales people with regular customer contact
Integration into traditional sales cycles, infrastructure
Backup by special sales force
Product Concepts
Click packages like flat fee models
Budget based campaigns as the next level
Online Presence with Profile pages
Combined with online directory offerings
Tracking & Reporting
Training the sales force to
Think online, Live online, Work and sell online
Customer Retention with online marketing seminars
Success Factor Sales

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Success Factor: Networks
Nucleus is high quality local search index + map
Combined content and monetization distribution
Online directories, local search, classifieds, etc.
Sub-networks of local publishers
Additional network of profile pages
Network reach currently 40 MM searches
Customer Base approx. 6,000+

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Success Factor Technology
Controlling of own auction-based ad platforms
License of Fast AdMomentum/ Microsoft
Development of specific widgets
Blending of ad feeds
Configuration wizard
Geo-coding for mobile navigation
Market place for exchange
Status as „Beta customer“
Co-Founder of local search group
Exchange and support of new developments
Official X10partnership for AdMomentum in the D-A-CH region

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Examples of our social marketing platforms

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TrustYou.com

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123people

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Dealhamster.com

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Billiger.de

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Thank you for your attention! mailto: Joachim.helfer@mueller-medien.com
Local Social Summit – Museum of Contemporary Arts, London, November 3rd

James Thornett
Executive Product Manager, Local & Location Services
BBC Future Media & Technology

Engaging local audiences

“Please enter your postcode”

Q&A

2010 Predictions
Roland Bryan, Associated Northcliffe Digital
Simon Greenman, European Directories
Joachim Helfer, MüllerMedien
James Thornett, BBC Local

Thank You