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State of SoLoMo by Greg Sterling - SIMposium 2012

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Industry leader, Greg Sterling presents on the State of SoLoMo (Social, Local, Mobile) internet marketing at SIMposium 2012.

Industry leader, Greg Sterling presents on the State of SoLoMo (Social, Local, Mobile) internet marketing at SIMposium 2012.

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  • Senior Analyst at Internet2Go, Opus Research Principal at Sterling Market Intelligence Contributing Editor at Search Engine Land & Industry Thought Leader…. You can follow Greg on Twitter at @gsterling, but please let me retweet his stuff first!!! Greg it’s all yours….
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    • 1. t The State of „SoLoMo‟:Where Are We Today, Where Are Going? Greg Sterling June 14, 2012 1
    • 2. Greg Sterling, Internet/Mobile Analyst• Former lawyer, editor, startups, analyst, blogger• Search, social media, mobile, local, multi-channel shopping, SMB advertising/marketing• “The Impact of the Internet on Offline Buying”• Twitter: @gsterling
    • 3. Daunting Task
    • 4. The SoLoMo „Mandala‟ A Mandala is a kind of Social Local symbolic representation of . the universe used to help “access progressively deeper levels of the unconscious, ultimately assisting the meditator to experience a mystical sense of oneness with the ultimate unity from which the cosmos in all its Mobile manifold forms arises.”**Author David Fontana, “Meditating with Mandalas”
    • 5. Coherent or Just a Catchphrase? Social + + Mobile . . .The convergence of three major “online” trends:• Social: word of mouth, user-generated content• Local: online research  offline buying• Mobile: the internet “in context” (time/space)Is it “necessary,” inevitable or “organic”?
    • 6. Brought to You by „Post PC‟ Devices"This transformation is going to make some peopleuneasy...because the PC has taken us a long ways. Itsbrilliant. We like to talk about the post-PC era, but when itreally starts to happen, its uncomfortable." -- SJ June, 2010
    • 7. Is SoLoMo „Web 3.0‟?• Just hype or real shift in the direction of the market?• Deskltop or laptop PC is just one of multiple Internet devices (joined to varying degrees by “the cloud”)• Internet: from “always on” to “always available”• We use mobile devices to communicate and document our experiences in the world• Mobile devices help us literally navigate the real world
    • 8. It‟s App-tastic and App-centriccomScore (5/12): “4 in every 5 mobile media minutes”is spent with apps (vs. mobile browser)
    • 9. Apps Surpass PC Time Spent? Time Spent - Minutes per Day 94 Nielsen says smartphone 72 owners have 41 apps, spend roughly 39 minutes a day using apps PC-based Internet Mobile appsSource: Flurry Analytics, comScore, Alexa (2012)
    • 10. Increasing Audience FragmentationMany marketers finding challenges inaddressing all these channels coherently . . .then tracking, doing attribution
    • 11. Multiple Media in an X-Platform World
    • 12. Other Media Stimulate Mobile Search 2010 2012 1. Response to traditional Performed a mobile search after media/ads (68%) seeing an ad (66%); 2. Word of mouth (61%) Ad medium: 3. Saw something in a store 1. TV (58%) (44%) 2. In-store (57%) 4. Responding to mobile ad (27%) 3. Magazines (48%) 5. Responding to online ad 4. Outdoor ad (36%) (18%)Source: Google-Ipsos Q4 2010, n=5,000 Source: Google-Ipsos Q1 2012, n=1,000
    • 13. Simultaneous Media Usage Where you using/looking at any other media at the same time [when using smartphone]? Yes No 82% 9% 9% 77% 13% 1% % 0 19 66% 15% 36% 45% 16% 39% 28% 14% 64%Source: IAB, 5/12 “mobile shopping diaries,” n=260
    • 14. Generation ADD?Are we creating a generation of anti-social, narcissistswith ADD?
    • 15. PC Ascent Has Stopped 90% 80% 79% 78% 73% 75% 70% 63% 60% 50% 50% 40% 30% 20% 10% 0% Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06Source: Pew Internet & American Life Project, 2012
    • 16. Smartphone Penetration Likely: 75% to 85% of mobile subscriber population in 3 years 53.0% 49.7% 44.0% Pew Nielsen comScoreSource: Surveys conducted in 2012 by each of the sources identified
    • 17. Mobile Internet Grows with Devices Millions of users (US) Total US PC 109+ Internet Audience 220M (comScore) 85 Smartphone owners who Smartphone owners who access the Internet access the Internet dailySource: Opus Research, Pew, wireless carrier data (2012)
    • 18. Sizable Segment Prefers Mobile to PC 25% 17.6% Pew 4/11 n=2,277 Opus 3/12 n=1,502 • Over 100 million on mobile internet • More than 20 million people prefer smartphones and tablets to PCs for internet accessSource: Opus Research (2012), Pew American Life & Internet Project (2011)
    • 19. Tablets Cannibalizing PC Usage Since you started using a tablet, has your desktop/laptop usage decreased? 77% 28% of respondents said that the tablet is their primary computer 23% Yes NoSource: Google-AdMob, March 2011
    • 20. Developing World: Mobile Passing PC India: Mobile vs. PC Internet Traffic Desktop Mobile 80 70 Percent of traffic 60 50 40 30 20 10 0Source: StatCounter (June, 2012)
    • 21. Apple Gets into Local in a Big Way• How good is it and how widely used will it be?• What will Google’s response be?• Will there be any paid advertising?• Will there be potential Siri or Apple Maps optimization?
    • 22. Local
    • 23. US Ad Spend by Major Segments (2011) $ Billions Broadcast TV 38.5 Internet 31.7 Cablet TV 30.0 Newspapers 20.7 Total $174 billion* Magazines 18.0 Radio 15.2 The only traditional Yellow Pages 10.0 medium to see a Out of home 6.5 positive CAGR since 2005 has been Mobile 1.7 cable TV Video game ads 1.0 In theater 0.7 Local range: $95 to $130 billionSource: IAB-PwC (2012), Opus Research, Kantar Media*Total US ad revenues exceed $230 billion
    • 24. Top 10 Advertising Categories (2011) About $60 billion of this is local ad spendingSources: Kantar Media (2012); categories are not all-inclusive
    • 25. 95% of Retail in Stores $4T in annual US retail spending E-commerce is 4.9% of total US retailSource: US Census Bureau Q1 2012
    • 26. Online Research  Offline Buying 90% (or more) of online consumers conduct online research before buying offlineSource: Opus Research, Yahoo, e-Taling Group (2010-2011)
    • 27. Local Never Got Any Digital Respect I told my wife the truth. I told her I was seeing a psychiatrist. Then she told me the truth . . . that she was seeing a psychiatrist, two plumbers, and a bartender. Despite billions in potential ad revenue digital marketers haven’t given Local much respect . . . It’s been seen as a “niche” or a “vertical”
    • 28. SMB Market Hard to Crack 94% of all US businesses have 4 or fewer employees Nonemployer firms Firms with 1 to 4 employees 16% Firms with 5 to 9 employees Firms with 10 to 19 employees 79% Firms with 20 to 99 employees “Last mile” problem: very tough to reach SMBs w/o sales outreach. Low value: majority of SMBs spend less than $5K per year on marketing/advertisingSources: US Census Bureau, Opus Research
    • 29. Challenges Facing National-LocalsSource: CMO Council October, 2011 (n=300 brands, agencies)
    • 30. Mobile
    • 31. Mobile Helps People „Get Local‟• Mobile phones can be located in a place at a point in time• Bridges and brings more transparency to online  offlline pattern• Marketers’ own smartphone adoption and behavior helps them understand
    • 32. Mobile Users More Active, Engaged • Roughly 40% to 50% of browser- based mobile search “related to location” • Local-mobile users take action: - MSFT: within 1 hour (70%) - Google: within a day (88%)Source: Google-Ipsos, Microsoft (2010-2011)
    • 33. Mobile Search  Local Action • 94% of smartphone users have looked for local information - 90% have taken action as a result - 70% connected with the business - 66% visited the business - 36% made a purchase - 23% told others about it • 58% search for local information at least once a week • 27% search for local info dailySource: Google-Ipsos Q1 2012, n=1,000 US adults
    • 34. Users Prefer Locally Relevant Ads Would you prefer ads that are locally relevant to you? 82% 9% 9% 77% 13% 1% % 0 19 20% 66% 15% 45% 16% 39% No 28% 14% Yes 80%Source: JiWire, Q4 2011; survey of adults in the US and UK using JIWire ad-supported WiFi networks
    • 35. Local Targeting Increases Relevance 82% 9% 9% 77% 13% 1% % 0 19 66% 15% 45% 16% 39% 28% 14%Source: IAB, 5/12 “mobile shopping diaries,” n=260
    • 36. Mobile Growth in Paid Search Clicks“Between 15% and 25% of paidsearch traffic is now coming frommobile devices . . .In local-heavy categories, such asdining, auto services andentertainment this jumps to 50%or more.”-- DataPop CEO Jason Lehmbeck
    • 37. Mobile Users Click More Search Ad CTR Comparison 4.12% 3.12% 2.39% PC Smartphones Tablets (iPad)Source: Marin Software (Q1 2012)
    • 38. But Do They Convert? Comparative Conversion Rates 5.2% 4.9% 2.0% PCs Smartphones TabletsSource: Marin Software (Q1 2012)
    • 39. Conversion Happens Somewhere Else • 65% of smartphone owners would prefer to use a PC/laptop for transactions • 37% researched but later purchased online • 32% researched and later purchased offlineSource: Google-Ipsos Q1 2012, n=1,000
    • 40. Only 26% Tracking Offline Impact DataPop: “In some rare but interesting cases [paid search marketers] are tracking mobile ads down to the offer level and they have seen 5 – 10X sales when accounting for in-store conversions.” 26% Tracking offline impact Not tracking 74%Source: Google/MMA , Global Perspectives: The Smartphone User & Mobile Marketer, June 2011
    • 41. Smartphones/Tablets: Local Nuances Stage of local business search when device is used 22% 24% Throughout the entire 12% 17% process 21% At the end 29% In the middle 45% In the beginning 29% Mobile Phone TabletSource: comScore-Localeze-15Miles Local Search Study, Q1 2012, n=4,000
    • 42. Where Do You Use Your Smartphone? At home 97% Top 3 locations: On the go 83% 1. Home In a store 78% 2. On the go Restaurant 71% 3. In store Work 71%Social gathering 60% IAB “mobile diaries” study: Dr.s office 56% Café 50% 1. At home: 47% 2. Out and about: 29% Airport 49% 3. At work: 10%On public trans. 36% School 30% AdMob survey (3/11): 82% of tablets used primarily at home Source: Google-Ipsos Q1, 2012 n=1,000 US smartphone owners
    • 43. IAB: US Mobile Ad Revenues (2011) (in millions) 1,678 Search where local-mobile revenues concentrated today. Overall about 25% to 28% 811 64 572 66 74 81 MINUTES 43 MINUTES MINUTES MINUTES MINUTES 295 MINUTES Search Display SMS TotalSource: IAB June, 2012
    • 44. Meeker: $20B Mobile Opportunity 64 66 74 81 MINUTES 43 MINUTES MINUTES MINUTES MINUTES MINUTESSources: Mary Meeker, KPCB “Internet Trends” presentation May 2012
    • 45. Marketers Not Mobile-Ready • Google: Mobile-friendly sites produce 75% higher rate of engagement (revenue, page views, etc.) per visit for mobile users • Feb 2011: “Of top 800 Google customers, 79% are not ready to engage mobile customers.”* • Feb 2012: Only 9% of 1,000,000 sites “mobile ready”** • Q1 2012: Only 5% of independent restaurants have a mobile website*** I’m disappointed in you*Google: Jason Spero (ThinkMobile event 2011)**Mongoose Metrics, February 2012*** Restaurant Sciences Restaurant Internet Marketing Study (2012)
    • 46. Social
    • 47. Social Sites Follow Users: Mobile 901 million monthly active users; 526 million daily active users; 500 million mobile users 80.4% reach; time spent: 20% (browser), 80% (apps) 500M registered users; 140M active users (55% to 60% active on mobile). Twitter generated more ad revenue from mobile than from PC site “on many days in the last quarter” (Twitter CEO Dick Costolo, 6/12) Making a big push into mobile . . . with Google+ Local contentSource: Company information, comScore (3/12)
    • 48. Mobile Minutes on Social Apps/Sites Average Monthly Minutes (US Smartphone Users) 441.3 145.6 114.4 52.9 68.4 12.9 Facebook Twitter LinkedIn Pinterest Foursquare TumblrSource: comScore March, 2012
    • 49. Reviews Preferred Information Source Which is the preferred source for product/service information? Consumer ratings 63% Consumer reviews 62% Company website 50% Call Center 47% Email 45% Top two reasons consumers Video clip 34% write reviews and share Live chat 30% experiences online: Companys Facebook Page 15% 1. Give recognition “for a job Mobile app 9% well done” Online ad 8% 2. Protect others Companys Twitter account 7%Source: Nielsen and NM Incite (2011)
    • 50. SMBs: How Do Customers Find You? 82% 66% 37% 23% 23% 21% 17%Source: AMEX/Network Solutions 2/11 (n=400 US small businesses who did some form of online marketing)
    • 51. Small Business Embracing Social Media Which sites do you use to promote your business? Facebook 70% Google 55% LinkedIn 52% Google Places 42% Yahoo 36% Yelp 34% Twitter 32% Other surveys: 45% to Bing 26% 60% adoption of Facebook Pages YP.com 23% Youtube 20% Other 13% Groupon 5%Source: Opus Research-MerchantCircle (Q4, 2011) N=2,096 US small businesses under 100 headcount; Implied-Intelligenceanalysis of 1.3 million US SMB websites
    • 52. Study: 58% on Either FB or TwitterSource: Palore July 2011
    • 53. Search  Social Feedback Loop Bing teamed up with FB for “social search”Search to differentiate from Google. Google responded with social/personalized search and Google+ Also: Google+ Local Social “Local is social” (M. Mayer, June 2012)
    • 54. Search + Social (Bing)
    • 55. Google+ Local: SoLo Convergence
    • 56. Foursquare: SoLoMo Most well-known “organic” SoLoMo appMobile was necessaryfor check-ins and real-time social notifications
    • 57. Other Developments to Watch• Siri: the further evolution of the voice interface and intelligent assistant• Facebook mobile initiatives (Local? Deals? Facebook search?)• Evolution of Facebook Credits (as offline [loyalty] currency)• Mobile payments and convergence of payments + deals + offline analytics (“closing the loop”)• Big (Local) Data: e.g., Skyhook, PlaceIQ• Telematics and other new Internet access points• Visual search (AR, scanning, Goggles)
    • 58. And Remember, Wherever You Go . . . There You Are You Are Here
    • 59. Questions?greg.sterling@gmail.com @gsterling Social Local . Mobile