The Almighty Local Dollar — Greg Sterling

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The Almighty Local Dollar — Greg Sterling

  1. 1. Local Overview Greg Sterling Sterling Market Intelligence/Opus Research
  2. 2. Local Ad Market: North of $90B Source: IAB, various media sources
  3. 3. ‘ Plumbers & Pizza’ not the Whole Story “ Local search” has historically been associated with SMB advertising (e.g., plumbers and pizza)
  4. 4. Politics and Brands Are Local <ul><li>Brands may “exist” on the regional or national level but buying occurs almost entirely offline, in stores, dealers or outlets </li></ul><ul><li>Internet and search are critical tools used by consumers </li></ul><ul><li>Brands and national advertisers not leveraging local online ads are missing a key piece of the online puzzle – the chance to lead a buyer to a store or POS </li></ul>
  5. 5. Majority of Transactions Offline <ul><li>More and more people research online but still buy in stores </li></ul><ul><li>E-commerce <4% of US retail </li></ul>Source: US Census Bureau, Q3 2008
  6. 6. Consumer Behavior the Real Story <ul><li>Brands, nationals many not clearly see importance of “local” because of SMB narrative </li></ul><ul><li>Focus should be on how consumers use Internet to before making buying decisions </li></ul><ul><li>Dominant consumer paradigm is “ROBO”: research online, buy offline </li></ul>
  7. 7. Internet the Top Research Tool <ul><li>“ If you were only able to use one source of information to support your next consumer electronics purchase, which would you choose?” </li></ul><ul><ul><li>Internet – 58% </li></ul></ul><ul><ul><li>Visit to local stores – 25% </li></ul></ul><ul><ul><li>Reviews in newspapers/magazines – 8% </li></ul></ul><ul><ul><li>Friends and family – 8% </li></ul></ul><ul><ul><li>Other – 1% </li></ul></ul>Source: Nielsen, May 2008
  8. 8. Online-Offline Shopping Growing Source: Jupiter Research, ShopLocal (2008)
  9. 9. Marketers: GeoTargeting Delivers Best ROI Source: MarketingSherpa survey, 2008
  10. 10. Local: National Advertiser Challenges Multiple mentions permitted Base: National Advertisers using geotargeting (n=132)
  11. 11. SMBs: ‘Main Reason’ for No Online Mtkg Source: Opus Research, AllBusiness.com August, 2008, n=615 US small businesses Indicate the main reason your business does no online marketing

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