David Card, director of research at Street Fight, presents brand new data: The intersection of three technologies is energizing the hyperlocal economy — new marketing tech, mobile, and next-gen point-of-sale systems. Will local businesses finally connect the dots between marketing and commerce, and between front- and back-office technologies?

1. David Card
Research
Director
October 2015
TECHNOLOGIES &
TACTICS FOR THE
CONNECTED LOCAL
ECONOMY

2.  Taking the pulse: Survey of 30+ industry movers and
shakers
 What’s hot or not: Tech investment strategies
 Most difficult challenges
 Opportunities in connected local economy
 What to watch and key takeaways
AGENDA

3. WHAT’S HOT (OR NOT)

4. HYPERLOCAL MARKETING & ADVERTISING: TOP
BUDGET INVESTMENTS
6%
9%
11%
17%
23%
29%
43%
46%
51%
0% 10% 20% 30% 40% 50% 60%
“Marketing clouds”
Streaming audio/video
Beacons
Programmatic advertising
Geotargeting/geofencing
Content marketing/native advertising
Data and analytics
Social media
Mobile advertising
Share of respondents (top 3)

5. HYPERLOCAL COMMERCE: TOP BUDGET
INVESTMENTS
3%
14%
17%
17%
17%
20%
26%
31%
37%
40%
0% 10% 20% 30% 40% 50%
Wearables
Data and analytics
Next-generation POS
Beacons
Booking/scheduling platforms
Mobile or alternative payments
On-demand services
Ratings and reviews
Social media
Mobile commerce
Share of respondents (top 3)

6. “HOT TOPICS” PREDICTED TO FADE
11%
11%
20%
20%
23%
23%
29%
51%
0% 10% 20% 30% 40% 50% 60%
On-demand services
Beacons
Wearables
“Marketing clouds”
Programmatic advertising
Content marketing/native advertising
Next-generation POS
Facebook stores/buy buttons
Which “hot topics” will we not even be talking about next year?
Share of respondents (top 3)

7. BIG PLAYERS WITH MOST IMPACT IN 2016
20%
11%
17%
23%
29%
0% 10% 20% 30% 40%
Other
Square
Yelp
Apple
Uber
Share of respondents

8. KEY CHALLENGES

9. BIGGEST CHALLENGES: PRODUCTS AND
SERVICE
0% 20% 40% 60% 80% 100%
Training and servicing local
merchants
Proving ROI to customers
Selling low-cost products at scale
Creating products with low
enough price points
Share of respondents, ranking 1-5
Most difficult Least difficult

10. BIGGEST CHALLENGES: CUSTOMER
ACQUISITION
0% 20% 40% 60% 80% 100%
Identifying prospective
customers
Selling to national brands
My company’s brand awareness
Share of respondents, ranking 1-5
Most difficult Least difficult

11. OPPORTUNITIES

12. NEW TECH “PERFECT STORM” COMING
SOON?
11%
23%
31%
40%
51%
0% 10% 20% 30% 40% 50% 60%
It will take a big company like Intuit
or Google to make it happen
There’s a great opportunity to
connect front and back office ops
There’s a great opportunity to
connect front and back office data
That’s an interesting idea, but it’s still
a few years away
Most local businesses aren’t
sophisticated enough
Intersection of mobile, next-gen POS, new mar-tech
Share of respondents

13. MEANWHILE, WHERE LOCAL MERCHANTS
SAY THEY NEED THE MOST HELP
9%
10%
10%
11%
13%
15%
16%
17%
18%
24%
24%
25%
0% 5% 10% 15% 20% 25% 30% 35%
Loyalty marketing
Reputation monitoring and review…
Deals/promotions/coupons
Online display/banner advertising
Mobile marketing
Blogging/online content creation
Paid search advertising
Traditional media
Getting our listings information…
Facebook and/or social media…
Company website, Ecommerce
Search engine optimization
Small local merchant respondents

14. VENDOR PERCEPTIONS OF HELP NEEDED
– SLIGHT DISCONNECT
6%
9%
11%
17%
17%
17%
26%
31%
37%
49%
51%
0% 10% 20% 30% 40% 50% 60%
Back office
Offers, coupons
Paid search
Listings management
Online display advertising
Payments and POS
Loyalty programs
E-commerce
Search engine optimization
Company website
Mobile marketing
Share of respondents (top 3)

15. HEADING INTO ELECTION SEASON
71%
14%
9% 6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
No impact Up to 10%
increase
10% to 25%
increase
25% to 50%
increase
Predicted impact of political spending on your
company’s business
Share of respondents

16. WHAT’S NEXT

17.  Mobile marketing
 Search implications
 Walled gardens of data and users
 Digital commerce
 Window(s) for new POS equipment, payments
 Connecting dots between marketing and sales
 Front office/back office promise
WHAT TO WATCH

18. Mobile is hot, but early for
small local merchants
Social is still a shiny new toy,
and a short cut to mobile for
many
Adtech that’s more important
elsewhere: Programmatic,
native
Publishers: Brand awareness;
possible channel?
Connecting the dots: marketing
before operations
KEY
TAKEAWAY
S