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The Local Digital Media Eco-System
A view from across the pond
1
Presented by Doug Meeker, May 15, 2014
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
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
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
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
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
The local digital media eco-system
7
Sales & Marketing Infrastructure Content
Digital Marketing Services Platforms
Analytics
Search
News & Information
Commerce
Ad Networks
Social
Look what’s coming ...
8
 2,200+ start-ups on Angelist
have SMB’s and localized
audiences as their targets.
 Trending on AngelList
SevaCall
9
To view video, click on the image above or paste this link URL into
your browser: http://vimeo.com/41472479
10 10
Constant Contact
11
Headlines of Note
Trends
13
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
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
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
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
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
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
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
http://www.businessinsider.com/newspaper
-advertising-collapse-2012-9
Newspaper death spiral
21
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
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
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
The time spent vs. spend gap persists
25
http://www.slideshare.net/kleinerperkins/kp
cb-internet-trends-2013
Source: Kleiner, Perkins, Caufield and Byers
Challenges
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
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
Innovation in Local
29
Solocal - Minitel
30
AOL Digital City
31
Free
Photo
Scanning
Online
Chats
Reaction
News
Model
Google Maps
32
Yelp
33
ReachLocal
34
First to offer
“shrink-wrapped”
SEM!
Intuit – Demand Force
35
Groupon
36
Facebook Lookalike
37
Closely - Perch
38
Misfires
39
Daily Candy – Local Shopping
40
Patch – Hyper Local News
41
Kudzu – Local Search
42
Outside.in
43
What Happened?
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
√ √ √ √
Demand POV
46
Demand = radio signal strength
47
Outside.in
KudzuDaily Candy
Patch
Demand Stages
48
Suggested process
49
Pre-
product
Concept
Product
Concept
User
Conversations
Search
Analysis
Competitive
Analysis
Observed
Behavior Refine
Going forward
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
The Feed
52
Platforms
53
Commoditization
54
Key Drivers
55
Mobile
Big Data
The FeedPlatforms
Commoditization
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
Sales organizational choices
Flat Tiered
57
Clients/Prospects
Clients/Prospects
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
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
Thank You!
60
 Contact info:
 Email: DCMeeker@aol.com
 LinkedIn: Doug Meeker
 Web: http://dcmeeker.com

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