SIINDA Conference: Local Digital Media EcoSystem

2,918 views

Published on

Presentation on the state of the US Local Digital Media Ecosystem at the the May 2014 SIINDA Conference in Budapest, Hungary.

Published in: Business, Technology
4 Comments
3 Likes
Statistics
Notes
No Downloads
Views
Total views
2,918
On SlideShare
0
From Embeds
0
Number of Embeds
78
Actions
Shares
0
Downloads
28
Comments
4
Likes
3
Embeds 0
No embeds

No notes for slide

SIINDA Conference: Local Digital Media EcoSystem

  1. 1. The Local Digital Media Eco-System A view from across the pond 1 Presented by Doug Meeker, May 15, 2014
  2. 2. The Doug Bio 2  Marketing digital products to SMB’s for majority of career  18 years in Local Digital Media via AOL, Examiner, Gannett  Built and led large scale sales efforts for display, directory, social and daily deals.  GM of AOL YP and Local Search  Investor/advisor to local digital media start-ups Small Business Marketing YP/ Local Search City Guides Daily Deals Social/ Crowd- Source Operator
  3. 3. What does local digital media mean? 3  For Consumers  Geo-based content  Query – search, directory  Context – news, info.  For SMB’s  Marketing targeted at a specific geo-targeted audience  For National Advertisers  Marketing targeted at an aggregation of geo-targeted audiences Geo-Centric Contextual Personalized
  4. 4. How Did We Get Here? 4 To view video, click on the image above or paste this link URL into your browser: https://www.youtube.com/watch?v=WxsuxaHTVLg
  5. 5. A Timeline of Local Digital Media 5 1996 2000 2004 2008 Craigslist Yahoo AutobyTel Digital City Nynex YP Monster CitySearch Sidewalk MapQuest Careerbuilder Google Autotrader Yellowpages.com Verizon Super Pages Angie’s List Service Magic ReachLocal Yelp Facebook Yodle Twitter Yext Living Social Groupon Patch 2014
  6. 6. Timeline 6 1996 2000 2004 2008 Craigslist Yahoo AutobyTel AOLDigital City Nynex YP Monster CitySearch Sidewalk MapQuest Careerbuilder Google Autotrader Yellowpages.com Verizon Super Pages Angie’s List Service Magic ReachLocal Yelp Facebook Yodle Twitter Yext Living Social Groupon Patch Web 1.0 • Portals • Dial-ups • Cityguides vs. legacy • AOL, Netscape, Microsoft Web 2.0 • Search • Broadband • Local search vs. YP • Google, Yahoo, Amazon Web 3.0 • Social • Mobile • Apps vs. desktop • Facebook, Twitter, Apple 2014
  7. 7. The local digital media eco-system 7 Sales & Marketing Infrastructure Content Digital Marketing Services Platforms Analytics Search News & Information Commerce Ad Networks Social
  8. 8. Look what’s coming ... 8  2,200+ start-ups on Angelist have SMB’s and localized audiences as their targets.  Trending on AngelList
  9. 9. SevaCall 9 To view video, click on the image above or paste this link URL into your browser: http://vimeo.com/41472479
  10. 10. 10 10
  11. 11. Constant Contact 11
  12. 12. Headlines of Note
  13. 13. Trends 13
  14. 14. http://www.businessinsider.com/mobile-will- eclipse-desktop-by-2014-2012-6 Mobile is rapidly overtaking desktop 14 Source: comScore Number of global users in millions
  15. 15. Time spent online is exploding 15 http://www.businessinsider.com/were- spending-a-lot-more-time-online-thanks-to- smartphones-and-tablets-2014-4 Source: comScore
  16. 16. Consumers prefer mobile apps vs. mobile web 16 Source: Flurry Analytics http://static3.businessinsider.com/image/53 3ae0846bb3f7443c56bb68-1200- 900/2014_04_01_time.jpg
  17. 17. http://blog.flurry.com/bid/110166/the-rise- of-the-mobile- addict?source=Blog_Email_%5BThe%20Ri se%20of%20the%20Mobi%5D&utm_sourc e=Triggermail&utm_medium=email&utm_t erm=Tech%20Chart%20Of%20The%20Da y&utm_campaign=SAI_COTD_042414 Mobile “checks” per hour also increasing 17 Source: Flurry Analytics
  18. 18. http://www.brightlocal.com/2014/02/14/traffi c-changes-local-directories-iyps/ Traffic to directories dropped 22% in 2013 18 Source: Bright Local Total aggregated traffic for top 40 directories
  19. 19. http://www.brightlocal.com/2014/02/14/traffi c-changes-local-directories-iyps/ Who’s gaining – who’s losing? 19 Source: BrightLocalAll directories – Best Performing Directories of 2013
  20. 20. http://www.brightlocal.com/2014/02/14/traffi c-changes-local-directories-iyps/ Yelp 2-3x vs. the rest of the pack 20 Source: BrightLocal All directories – Best Performing Directories of 2013
  21. 21. http://www.businessinsider.com/newspaper -advertising-collapse-2012-9 Newspaper death spiral 21
  22. 22. Local US Ad Market 22 Newspapers 17.0% Direct Mail 27.0% TV 15.7% Radio 11.2% Yellow Pages 5.8% OOH 5.5% Cable 5.1% Magazine 2.4% Online / Interactive 8.2% *ERPM 1.2% Mobile 0.9% 2014 U.S. Local Media Revenues — $142.5 Billion *ERPM = Email, Reputation and Presence Management Digital revenues associated with traditional media (e.g., websites associated with local TV stations, local radio stations, newspapers and magazines) are included in the revenues for the traditional media. Revenues for Internet Yellow Pages that are associated with print Yellow Pages are included in the overall Yellow Pages media category. Source: BIA Kelsey
  23. 23. Steady shift to digital 23 $111.5 $112.2 $110.7 $111.4 $110.7 $112.7 $21.2 $24.0 $27.4 $31.1 $35.0 $38.5 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 2011 2012 2013 2014 2015 2016 Traditional Online/Digital US$Billions Note: Numbers are rounded. 2011-2016 CAGRs: Total Media CAGR 2.6% Traditional Media CAGR 0.2% Online/Digital Media CAGR 12.7% $136.2 Note: Numbers are rounded. $132.8 $138.1 $142.5 $145.7 $151.3 Source: BIA Kelsey
  24. 24. Media usage by SMB’s is fragmented 24 55.0% 38.7% 36.8% 35.7% 34.7% 34.5% 31.5% 28.2% 27.2% 22.5% 22.3% 22.3% 22.0% 21.7% 21.0% 20.7% 20.5% 20.2% 20.0% 0% 10% 20% 30% 40% 50% 60% Source: BIA Kelsey
  25. 25. The time spent vs. spend gap persists 25 http://www.slideshare.net/kleinerperkins/kp cb-internet-trends-2013 Source: Kleiner, Perkins, Caufield and Byers
  26. 26. Challenges
  27. 27. SMB Landscape 27  Overall Challenges  Tepid economic recovery  Time strapped and resource short – not inclined to hire.  Lack expertise – digital media can be complex  Vendor Inflicted Damage  SMB’s avg. 20-30 cold calls per mo. from DMS vendors  “Me too” products hard to differentiate  Transactional sales approach Economic Challenges Resource Constraints Business Complexities Differentiation
  28. 28. Vendor Landscape 28  Cost of Sales Conundrum  Rise of low margin products – SEM  Decline of high margin products – print, display, sponsorship  Price wars - to meet volume quotas  Churn – endemic at low price points  Changing SMB Expectations  Demand for performance based products – CPC, CPL, CPA  Perceptions about digital – market “numb” to current pitches  Confusion about what to do in Social Margins Fragmentation Commoditization of Ad Inventory Performance Product Demands Expertise Changing Consumer Interests
  29. 29. Innovation in Local 29
  30. 30. Solocal - Minitel 30
  31. 31. AOL Digital City 31 Free Photo Scanning Online Chats Reaction News Model
  32. 32. Google Maps 32
  33. 33. Yelp 33
  34. 34. ReachLocal 34 First to offer “shrink-wrapped” SEM!
  35. 35. Intuit – Demand Force 35
  36. 36. Groupon 36
  37. 37. Facebook Lookalike 37
  38. 38. Closely - Perch 38
  39. 39. Misfires 39
  40. 40. Daily Candy – Local Shopping 40
  41. 41. Patch – Hyper Local News 41
  42. 42. Kudzu – Local Search 42
  43. 43. Outside.in 43
  44. 44. What Happened?
  45. 45. Common Traits 45 Large media conglomerate √ √ √ X Major $ invested to build/acquire $168M $200M N/A $14.4M Innovative product vs. me too? √ Newsletter X Hyper-local News X Local Search √ Original monetization model Display (CPM) Display (CPM) YP Listing fixed price Display (CPM) Multiple monetization strategies √ √ √ √ Management turnover √ √ √ √ Topline impact on mother ship X X X N/A Shut down/absorbed into the mother ship √ √ √ √
  46. 46. Demand POV 46
  47. 47. Demand = radio signal strength 47 Outside.in KudzuDaily Candy Patch
  48. 48. Demand Stages 48
  49. 49. Suggested process 49 Pre- product Concept Product Concept User Conversations Search Analysis Competitive Analysis Observed Behavior Refine
  50. 50. Going forward
  51. 51. Key Drivers 51 Mobile Big Data The FeedPlatforms Commoditization Not just for brand marketers The rise of native advertising Point of sale meets marketing Falling prices
  52. 52. The Feed 52
  53. 53. Platforms 53
  54. 54. Commoditization 54
  55. 55. Key Drivers 55 Mobile Big Data The FeedPlatforms Commoditization
  56. 56. What’s Missing - Innovation in Sales 56 Challenges  Quantity vs. quality lead generation  SMB call fatigue  Outbound sales efficiency  Low success rates = low morale  Selling products vs. solutions  Don’t fit  Don’t need  Don’t want  Churn/burn vs. grow/elevate  Metrics don’t do context  Lack of credible career paths  Minimal back end support  De-valued Sales leadership Solutions  Quality vs. quantity lead generation  Target by projected spend - $1,500+?  If below, bypass/outsource  Build culture of connect/success  Sell solutions vs. products  Package by vertical  Avoid/monitor over selling  Create basis for ongoing relationship  Go consultative vs. transactional  Evaluate performance holistically  Create credible career path tiers  Invest in back end support  Dynamic Sales leadership
  57. 57. Sales organizational choices Flat Tiered 57 Clients/Prospects Clients/Prospects
  58. 58. How to approach 58 Professional Sales Force • Consultative in nature • Focused on long term relationships • Solution oriented – media and platform Solution Marketing • Highly targeted by spend levels • Vertical orientation • Leverages product innovation Innovative Products • Addresses current and drivers • High margin, unique, value proposition • Addresses demand horizon
  59. 59. Summary 59 1. Here come the big guys! 2. Startups chipping away – One APP at a time 3. Product innovation - focus on the demand horizon 4. Organization wide innovation – not just products 5. It’s almost not too late
  60. 60. Thank You! 60  Contact info:  Email: DCMeeker@aol.com  LinkedIn: Doug Meeker  Web: http://dcmeeker.com

×