A short dive into the dynamics of local SMB Marketing

1. 1
Local Marketing: The next big
thing for your startup?
A short dive into the dynamics of local
SMB Marketing

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2about:Local Gmbh
Who is AboutLocal and what are we all about?
Our businesses model: Provide SMB leads and customer
information in a huge database for sales reps!
…and many more!
AboutLocal is scanning the web for data about millions of small businesses.
We then merge and interpret this information to create Europe's first
comprehensive small business database using only online data.

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3about:Local Gmbh
The Dark Ages/The Golden Years –
What was local marketing like before the internet?
Search:
Gelbe Seiten Free papers
Editorials &
Reviews
Customers
Local Businesses
Dark Ages for the
consumer….
…Golden Years for media
companies!
• 16 regional GS-publishers
• Revenue: 1,2 bn €*
• Circulation: 90 M
• Revenue: 2 bn €*
* www.welt.de
Coupons/Ads:
* www.bvda.de
• Travel, food, art, events,…
• Revenue: 0.6 bn €*
* www.boersenverein.de

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4about:Local Gmbh
Search Coupons &
Ads
Editorials &
Reviews
Customers
Local Businesses
It‘s getting better…
…but we‘re not there yet!
New players, same customer needs?!

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5about:Local Gmbh
So how is it working out for everyone? Some stats to go by….
Out of roughly 2 mio small (local) businesses in our database…
…ca. 140.000 own a facebook account (7 %)
23.86%
36.88%
29.28%
9.98%
# Facebook-Likes
0 - 25
26 - 100
100 - 500
> 500
…ca. 350.000 have been rated by clients (17,5 %)
81.77%
9.69%
6.84%
1.71%
# Customer Ratings
1 - 5
6 - 10
11- 50
> 50
….10.500 local businesses have offered a deal on
Groupon!  (0,5 %)
….144.000 local business have a paid online profile
(includes Gelbe Seiten)!  (7,2 %)
Shouldn‘t local online marketing be more
established by now as we are going mobile?
What is holding us back?

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6about:Local Gmbh
1. The customer adoption gap: SMB owners need to feel the difference!
Of the top 10 % most active local businesses,
only 27 % have received 11 or more customer ratings!
Business owners we interviewed who tried new concepts often made 1 transaction or less
2. The cost/revenue gap: Acquiring SMBs is expensive, but many online models do not bring
in enough revenue!
New products are difficult to explain and SMB owners are not particularly
savyy, expensive salesforce is often needed!
Performance-based models need high transaction volume to make any money off vendors:
Only AdWords and Group Buying have provided this volume “successfully“ so far.
Challenges to the rise of location-based SMB Marketing
while using the service over several months.

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7about:Local Gmbh
Questions location-based marketers need to think about!
1. CLIENTS
What services do people actually want to use?
What needs do we have when looking for local products & services?
2. SALES
How can we distribute them more quickly & more cheaply?
3. REVENUE
What are the valid revenue models to sustain such an expansion?
Is it going to be enough to take your share from the SMB vendor?

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8about:Local Gmbh
Mark Reich
Founder & CEO
Tel: +49 30 5482 150 - 0
Mobil: +49 152 54 21 99 30
Mail: mark.reich@about-local.com
Contact us!