Mobile and Local Advertising For Franchises:
The “How” and “Why”
Mike BolandSr. AnalystBIA/Kelsey
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Our Agenda
• Mobile By the Numbers• Local, Local, Local: Ad Targeting• Mobile Presence: Half the Battle• Mobile & Social: Going Native• Franchise Development• Franchise SoLoMo Report Card
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Sources: Query growth - Google internal data 2011; Tablet forecast - Forrester 2010
Apple iPad1
mobile searches have grown
5x in the past 2 years
20% of search is mobile50% of mobile search is local
– compares to 20% on desktop
Mobile & Local: Where are We Now?
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Mobile Time Share vs. Ad Share
Source: KPCB, eMarketer, IAB
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Mobile Advertising is Currently a Steal!
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Consumers Engage Across Screens
6Source: Google Internal Data, 2011. % of each platform’s traffic shown hourly for one day. Does not indicate absolute or relative traffic volumes.
12:00 AM
1:00 AM
2:00 AM
3:00 AM
4:00 AM
5:00 AM
6:00 AM
7:00 AM
8:00 AM
9:00 AM
10:00 AM
11:00 AM
12:00 PM
1:00 PM
2:00 PM
3:00 PM
4:00 PM
5:00 PM
6:00 PM
7:00 PM
8:00 PM
9:00 PM
10:00 PM
11:00 PM
Hourly Distribution of Searches by Device Type
Tablet Mobile Desktop
Day EveningMorningNight
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Mobile is Driving Tangible Conversions
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… And Quickly
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Our Agenda
• Mobile By the Numbers• Local, Local, Local: Ad Targeting• Mobile Presence: Half the Battle• Mobile & Social: Going Native• Franchise Development• Franchise SoLoMo Report Card
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Local vs. National Ad Spend in Mobile
2012 2013 2014 2015 2016 2017$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$2.03$3.11
$4.78$5.80
$6.90 $7.71
$1.22
$2.28
$3.90
$5.72
$7.20
$9.09
Non-location Targeted Location Targeted
US
$ B
illio
ns
Note: Numbers are rounded.
$3.25
$5.39
$8.67
$11.53
$14.09
$16.79
38%
54%
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Mobile Local Ad Performance
Source: Millennial Media
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Mobile Ad Performance
Localized mobile content and ads see higher engagement… before and after the click
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Driving Conversions at the Store Level
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Calls Product awareness
Store traffic
Click-to-call Product Local Ads Location Extensions
• Content should contain actionable information to align with mobile user intent
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The Online-to-Offline Factor
Most U.S. Retail is Offline, but a Growing Portion is Influenced Online and in Mobile
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The Online-to-Offline Trend Catching On...
Source: Millennial Media
Advertisers are adjusting to mobile usage realities by including localized calls to actions in mobile ads and websites
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Example: Blockbuster
• Calls to action integrated into ad units (store locators, click-to-call, etc.)
• Closest locations are automatically provided, – Great for national advertisers and franchises.
• Campaigns drive and measure whatever actions the advertiser specifies (calls, clicks, directions)
• Blockbuster trial saw half of all clicks launch a map, 20 percent clicked a coupon and 22 percent of those shared coupon via Facebook
• YP also provides a customized landing page so that users are given a consistent and optimized experience.
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Example: Radio Shack
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Example: Adidas
• Mobile ad campaign designed to send shoppers into physical stores via Google Local Extensions
• Previously only focused on mCommerce transactions
• New metrics based on in-store conversions revealed dramatic difference in ROI
• Play Video
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Localize Across the Board… Including Ad Creative
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Example: Scout/Telenav
Situational Targeting:
“Get a 7-day free pass…Come run on a Treadmill, Not in the rain”
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Our Agenda
• Mobile By the Numbers• Local, Local, Local: Ad Targeting• Mobile Presence: Half the Battle• Mobile & Social: Going Native• Franchise Development• Franchise SoLoMo Report Card
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Optimized Mobile Presence is Vital
Source: Compuware, “Why the Mobile Web is Disappointing End-Users”. March 2011
51% more likely to purchase from retailers
85% increased engagement
40% would visit a competitor’s site instead because of a disappointing mobile experience
To boost performance:
To keep customers:
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Example: Yelp
Fun Fact: 28% of Yelp’s users access the service via mobile, but 46 % of its searches are from mobile.
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What Does Yelp Offer?
Free • Customize and update
page • Respond to consumer
reviews (publicly or privately)
• View business trends and performance
• Revenue Estimator Tool
Paid • Sponsored search and
ads on other pages• No ads on your own
page• Video clip and/or slide
show
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BCG Study: Yelp Advertiser ROI
• Boston Consulting Group March Study – SMBs with free Yelp listing saw average revenue boost of $8K.– Those with Enhanced Listings saw average revenue boost of
$23K• Compares with average Yelp spend of $4.2K
• Category breakdown– Home — $54,000– Automotive — $39,000– Local services — $36,000– Hotel and travel — $36,000– Shopping — $24,000– Health & Medical — $20,000
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Example: 24 Hour Fitness
• Due to importance of reputation and word of mouth, 24 Hour dedicated resources to Yelp as a local marketing tool.
• Claimed many locations on Yelp and paid for “Enhanced Listings”
• Ads throughout Yelp desktop and mobile apps had 30% CTR• Profile pages generated 100,000 page views on average,
10K total reviews and a 7% conversion rate.• After seeing ROI, 24 Hour cancelled other local advertising. • Mobile accounted for 30% of traffic
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Our Agenda
• Mobile By the Numbers• Local, Local, Local: Ad Targeting• Mobile Presence: Half the Battle• Mobile & Social: Going Native• Franchise Development• Franchise SoLoMo Report Card
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Native Advertising: The Next Wave in Mobile
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Example: Foursquare
• “Promoted Updates” and “Promoted Specials.”
• Served through Explore Tab
• Geo-targeted and behaviorally targeted
• CPA priced• 20 Launch partners:
Gap, Best Buy, Hilton, Walgreens…
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Our Agenda
• Mobile By the Numbers• Local, Local, Local: Ad Targeting• Mobile Presence: Half the Battle• Mobile & Social: Going Native• Franchise Development• Franchise SoLoMo Report Card
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Franchise Development
• Many of the tools mentioned so far (and others) can be used for scouting locations and franchisees
• Most franchisees start out as brand users and brand advocates
• Data can reveal where they are, and the successful ad targeting methods to reach them
• Location isn’t just about location: it’s about audience profiling
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Targeting Locations and Franchisees with Behavioral & Location Data
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Location Tracking For Franchise Development
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© 2013 BIA/Kelsey. All Rights Reserved.
Our Agenda
• Mobile By the Numbers• Local, Local, Local: Ad Targeting• Mobile Presence: Half the Battle• Mobile & Social: Going Native• Franchise Development• Franchise SoLoMo Report Card
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© 2013 BIA/Kelsey. All Rights Reserved.
Source: LCM Wave 16, Q3/2012 (and prior waves, if relevant). Methodology: Online panels. Findings may not be statistically significant. Most questions are asked to the full sample of approximately 300 in each Wave. However, where the sample size less than 300, that question has been asked of a subset of the full sample.
Franchisees More Aggressive Spenders
Increase Decrease Maintain Not sure0%
10%
20%
30%
40%
50%
60%54.9%
3.3%
38.5%
3.3%
Franchise businesses intend to increase ad spend by 51.6% over the previous year, which is higher than average among businesses in our survey.
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© 2013 BIA/Kelsey. All Rights Reserved.
Source: LCM Wave 16, Q3/2012 (and prior waves, if relevant). Methodology: Online panels. Findings may not be statistically significant. Most questions are asked to the full sample of approximately 300 in each Wave. However, where the sample size less than 300, that question has been asked of a subset of the full sample.
Franchisees Digital/Online Media Percent of Overall Ad Budget
Last 12 Months Next 12 Months0%
10%
20%
30%
40%
32.4%34.3%
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Franchisee Digital Presence
Franchisees spend 66% more for their online presence than the average SMB in our survey.
Higher use of paid search and listings Online properties are variegated and robust They prefer DIFM over DIY when it comes to the upkeep and
management of their digital presence More than 80% pay outsiders to update their properties Franchisees who use videos (including YouTube) hire a
professional and prefer custom over standard stock video. Use of product content to build awareness and SEO is
aggressive: more than just on page optimization. Building SEO is done through a mix of sources: Listings, blogs,
like buttons, reviews and tweets are ranked as the top activities. $0
$10,000
$20,000
$30,000
$40,000
$50,000
$41,376
Ann
ual S
pend
Current properties:
57% Website54% Facebook Page53% Google Plus Page49% Landing Page
Future properties:
31% Landing Pages 31% Other Social Sites30% Facebook30% LinkedIn
Digital Budget
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© 2013 BIA/Kelsey. All Rights Reserved.
Source: LCM Wave 16, Q3/2012 (and prior waves, if relevant). Methodology: Online panels. Findings may not be statistically significant. Most questions are asked to the full sample of approximately 300 in each Wave. However, where the sample size less than 300, that question has been asked of a subset of the full sample.
Faceb
ook
Page
Video
Web
site
Mkt
g.
Faceb
ook
Ad
Online
Dea
ls
Mob
ile A
pps
Text M
sg.
IYP
Spec
Online
Dir.
Video
You T
ube
Online
Cou
pons
Pay p
er C
lick
Online
Ban
ner/D
isplay
Mob
ile B
anne
r
Mob
ile S
earc
h
Mob
ile D
eals
0%
20%
40%
60%
80%
65%
43%39%
32%30% 30%
28% 26% 26%22% 22%
20% 19% 18% 18% 17% 15%
S11- Advertising Media Used for Advertising/Promotion s\ Sample Size = 91
Digital Media Used By Franchisees
Digital adoption, especially emerging products like social and mobile, is higher than the average SMB in our survey. And there’s still plenty of room for growth.
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© 2013 BIA/Kelsey. All Rights Reserved.
Source: LCM Wave 16, Q3/2012 (and prior waves, if relevant). Methodology: Online panels. Findings may not be statistically significant. Most questions are asked to the full sample of approximately 300 in each Wave. However, where the sample size less than 300, that question has been asked of a subset of the full sample.
Replies to Unfavorable Comments
Like Button (or Similar)
Email Marketing
Claim Listing on Manta or Merchant Circle
Tweets
Pay per Call
Tries to Change Unfavorable Comments
Blogs
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
14.3%
23.1%
25.3%
24.2%
18.7%
26.4%
31.9%
28.6%
60.4%
58.2%
53.8%
48.4%
45.1%
40.7%
40.7%
37.4%
Don't have, likely to add next 12 months Currently have
Franchisee Online Marketing Activities
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© 2013 BIA/Kelsey. All Rights Reserved.
Source: LCM Wave 16, Q3/2012 (and prior waves, if relevant). Methodology: Online panels. Findings may not be statistically significant. Most questions are asked to the full sample of approximately 300 in each Wave. However, where the sample size less than 300, that question has been asked of a subset of the full sample.
Yes
No, likely next 12 months
No, and not likely add next 12 months
Not sure
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
78.0%
11.0%
9.9%
1.1%
Franchisee Monitoring Customer Comments
78% report they monitor online customer comments. Just over one-half of these reporting they use a monitoring service that’s part of a larger bundle of paid online services.
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Haven't heard of it12%
Heard of it; Don't know much16%
Learned about it; Don't use16%
Currently Using55%
Tried and Stopped 1%
Franchises are using mobile marketing but there’s lots of room for growth.
Source: BIA/Kelsey
Figure 1. Franchise Use of Mobile Marketing
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Don't use but likely to in next 12 months
Don't use, and not likely to in next 12 months
Not sure
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
42.9%
35.7%
21.4%
Figure 2. Franchise intended use of mobile marketing
Franchise use of mobile marketing will pick up: Now is the time
Source: BIA/Kelsey
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What’s Next: The Post-PC Era (not just cell phones)
Questions and Comments:
Michael Boland, Senior Analyst, BIA/[email protected]
© 2013 BIA/Kelsey. All Rights Reserved.
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