This document outlines 10 critical trends in local media and marketing: 1. Increased mobile device usage and time spent on apps is shifting digital media consumption and advertising revenue to mobile platforms. 2. Mobile payments and digital wallets are growing rapidly, especially for small transactions like coffee and tickets, though the landscape remains very competitive. 3. Efforts to connect digital and physical worlds through data and location-based targeting aim to measure the impact of online ads on offline sales. 4. Location data is increasingly used for behavioral targeting and retargeting on mobile devices.

1. TITLE of PRESENTATION
September 25, 2014
Ten Critical Trends in
Local Media & Marketing

2. Overview
1. Mobile device usage and media time
2. Mobile payments and digital wallets
3. Connecting the digital and physical worlds
4. Location goes indoors
5. Location is the new cookie (for mobile targeting)
6. Social media impact on consumer purchase behavior
7. World of wearables
8. Personal assistant: mobile successor to search
9. Internet of things
10. Operational and transactional services for SMBs
11. Rise of resource sharing

3. Mobile Device Usage
Smartphones:
• 72% penetration in US
• 90% penetration by end of
2016 projected
• Larger-screen phones gaining
momentum
• 35% of aggregate web traffic
in US (mobile + tablet)
Source: comScore, Nielsen, StatCounter 2014

4. Time Spent: Mobile vs. PC
40% 60%*
• *Apps claim majority of digital media time: 52%
• If ad revenue were more closely tied to time spent, 2014 digital revs would
be: mobile $29 billion; PC: $20 billion
• Time with apps, app sessions growing but not number of apps used
(roughly 27 per month on average – but most spend time with far fewer)
Source: comScore, Nielsen, Localytics, September 2014

5. Mobile Usage Bigger in Some Categories
• Pinterest: 75% of usage coming from mobile
• Retale: 80% of usage mobile
• Yelp: 59% of searches from mobile devices
• YP: 50% of search on YP’s network from mobile
• Twitter: 81% of revenue from mobile
Source: Company reports

6. Mobile Payments & Digital Wallets
Current Situation:
Source: Changing Landscape of Mobile Payments- Apps, Wallets &
Wearables, Thrive Analytics 2014

7. Very Competitive Landscape
Source: Changing Landscape of Mobile Payments- Apps, Wallets &
Wearables, Thrive Analytics 2014
Enter

8. Small Transactions, Significant Growth
• Starbucks- Mobile payments account for 15% of Starbucks US revenue.
(Growing at 20% per quarter)
• PayPal- 15% of transaction volume ($27 Billion) was mobile last year. (3 years
ago it was $600 Million)
• Top categories purchased include coffee, QSR items, groceries, tickets, etc.

9. Online-to-offline Sales/Visibility/Tracking
Offline to Online Retail Sales (in Billions)
$2,637
$1,758
$305
2014
~34% ($593 Billion)
Influenced by Mobile
Pure Online Online Influenced Pure Offline
Source: eMarketer 2014
Greatest Challenge for Marketers
• 63% Cross Channel
Measurement & Attribution

10. Efforts to Connect the Digital & Physical World
• Datalogix has partnered with industry
heavyweights like Facebook and Twitter to
provide a link between digital ads and in-store
sales.
• Placed Attribution measures the impact that
mobile advertising has on in-store visits and
traffic patterns.
• Owned by Google, Adometry specializes in
being able to credit online ads with impacting
consumers to take specific actions, such as
purchasing products in-store.
• Acquired by Acxiom in May, LiveRamp is a data
on-boarder that provides marketers with ways to
unify their customer databases across
disconnected digital marketing applications.

11. Location Goes Indoors
Varied set of use cases, categories and industries that can benefit
from indoor location:
• Retail stores, malls
• Entertainment venues, casinos, amusement parks
• Airports
• Stadiums and arenas
• College campuses
• Hotels
• Hospitals
• Museums
• Others
Macy’s decided to roll out iBeacons
in all its 4,000 locations.
Source: Macy’s

12. Location Is the New Cookie
Location increasingly used to
identify audiences and for
retargeting or behavioral
targeting
Mostly the background (display)
Toyota campaign: Ads only shown to qualified audiences
within a certain proximity of local Toyota dealers. Ads feature
different incentives or interest rates.
Primary uses of location are to determine which interest rate to
serve and for geofencing (based on prior qualification)
Ad creative (interest rates) dynamically served
Landing pages tie in to local dealers, inventory
Source: Toyotal, Opera MediaWorks

13. The World of Wearables
• $6 Billion 2014- $30
Billion by 2018
• Reducing friction points
• Changing business
models
• New ways to gather
information/search
• Privacy issues
• Apple Watch?
• Paying via wearable
device?

14. Social Media Impact on Purchases
Consumers often say social media has limited impact on buying decisions
How much does social media typically influence your purchase decisions?
Source: Gallup 2013, n=1,000

15. Social Media Impact on Purchases
2013 study from Vision Critical:
• 43% of social media users have purchased a product after sharing or favoriting it on
Yet other data
argue social media
has a meaningful
impact
Pinterest, Facebook or Twitter
• Social drives roughly equal amounts of online and in-store sales
Source: Vision Critical 2013 review of internal/client data + 6,000 consumer “interviews,” IBM survey 2014

16. Facebook and Local Reviews
Facebook captures more local business reviews than Yelp, Google and other sites
Source: Thrive Analytics (2014)

17. Personal Assistant: Successor to Search
Key Trends:
• 60% of smartphone owners have used a digital assistant i.e.
Siri, Google Now or Cortana to search for Local Information.
• 63% of users use it at least weekly with over 50% being “on-the-
go”
• Top uses include:
– 66% Searching for up general information
– 65% Looking for directions
– 44% Finding weather information
– 31% Reminders/schedules and notifications
– 20% Finding deals for local products & services
Source: 2014 Digital Personal Assistant Report, Thrive Analytics 2014

18. The Internet of Things
Source: Jabil 2014

19. The Internet of Things
Source: Jabil 2014
• $1.9 Trillion in 2013 to $7.1 Trillion in 2020
• How will a smart home, car, etc. impact your clients?

20. Operational/Transactional Services for SMBs
Range of companies offering “operational services” to SMBs:
• Scheduling/appointments
• Payments
• Invoicing/work orders
• CRM-like services
Examples:
• Open Table
• Swipely
• HomeAdvisor Mhelpdesk
• Yelp platform
• Square appointments
• Groupon scheduler
• Pingup
• Reach Commerce/Club
Local

21. Resource Sharing/Crowdsourcing
Marketplaces that use excess “inventory” or capacity and
can be “disruptive.”
A few high-profile successes:
• AirBnB
• Uber, etc.
• Kickstarter (a cousin)
Numerous failures in the segment
But the model will continue to inspire startups