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No ConversionLeft Behind
A Report
404 South 8th Street
Boise, ID 83702
www.balihoo.com1.844.BALIHOO
Why National Brands are Shifting Dollars to Local
It’s expected that businesses are going to spend $15 billion per
year on mobile, location-based advertising by 2018. While smaller
businesses are expected to increase their local marketing budget
by 8% from 2013 to 2018, it’s national brands that are making the
biggest shift to local with an estimated 37% increase from 2013
to 2018.
It almost seems counter-intuitive for a brand to grow from a small
idea to a powerful enterprise only to focus in on smaller customer
bases in their marketing. But hyper-targeted advertising is becoming
more prevalent among big and small brands alike. Why? Consumers
have come to expect a personalized marketing experience.
Consider the statistics below:
• 66% of people want ads customized to their location. 1
• Only 16% of brands don’t do any store localization at all.2
• In local search, national brands are showing less often than
small business in 4 out of the 5 tested industries.3
• 70% of national brands have invested heavily in local marketing.2
Why National Brands are Shifting Dollars to Local
NO CONVERSION LEFT BEHIND:
As consumers continue to expect personalization and relevancy, local marketing will likely be one of the key factors in determining the success of a brand. Though local marketing requires more resources to implement — especially in the beginning — it’s ultimately what makes advertising more relevant tothe consumer.
By focusing on relevancy to the customer, national brands are able to drive a higher ROI per dollar and are ultimately seeing better results inthe process.
Particularly for enterprise and national brands, local marketing
can require a higher level of problem-solving compared to
generic, national ads. But the payoff for doing so can be huge,
largely because local searchers are often the most likely to
take action.
When an online user conducts a search for a local brand,
product, or service, they are usually doing so because they are
ready to visit the store and make a purchase.
Consumers who conduct a local search — especially on their
phone — are some of the most motivated buyers out there:
• 78% of local mobile searches result in offline purchases.4
• Half of all mobile searches are performed in the hopes of
discovering local results and more than 60% of those lead to
a purchase.5
• 50% of consumers who conducted a local search on their
smartphone visited a store within a day. 5
• 18% of local searches on smartphones lead to a purchase
within a day (compared to 7% of non-local searches). 5
• 4 in 5 consumers want ads customized to their city, zip code,
or immediate surroundings. 5
Brands that are most effective at local marketing are able to
successfully capture these users’ attention when they’re most
interested, and they provide the user a clear path to becoming
a customer.
What Can Be Gained From Local Marketing?
NO CONVERSION LEFT BEHIND:
Extra Space Storage has more than 1,400 facilities nationwide and
Public Storage has more than 2,200 facilities nationwide. They are
the two largest brands in the self storage industry, and they have
each devoted large portions of their budgets to localize
their efforts.
A 2015 study3 compared national brands and small businesses
in Google’s Local Stack across seven industries. In 6 out of the
7 industries, small businesses dominated the Local Stack and
national brands were rarely placed in the top three spots. Self
storage was the industry that bucked the trend thanks to the local
marketing efforts of Extra Space Storage and Public Storage.
Both brands have managed to have:
• Moz Local Scores consistently in the 80s or 90s
• Domain Authority scores consistently near 70
• NAP (name, address, phone number) listed on all major citation
directories
• Positive reviews for each of their locations
These factors allow them to consistently rank well in online
local searches, which is certainly a contributing factor in
their revenue of $782.3 million (Extra Space Storage) and
$2.3 billion (Public Storage).
Example: Big brands Extra Space Storage & Public Storage consistently rank well in their local markets
NO CONVERSION LEFT BEHIND:
Extra Space also implements a variety of hyper-targeted
marketing tactics6. They adjust bids and ads across channels based
on the customer’s device, location, and time of day.
Some of their local marketing strategies include:
• Using location-based solutions to show users where the
nearest facility is in the ad, which boosted ROI by 184% and
increased click-through rate by 77%.6
• Targeting mobile users within a given radius of a facility, which
boosted ROI by 269% and increased conversions by 234%.6
According to Scott Jensen, the senior director of interactive
marketing, “Digital marketing allows us to operate on a local,
neighborhood level, considering the needs of individual
communities, yet do things at a much greater scale.”6
Local search marketing can be trickier for enterprise brands with
50 to 1,000 storefronts. But with organic search, social media
advertising, paid local search, and display advertising tactics, big
brands can still dominate local marketing.
Some of these tactics include:
LOCALIZE CREATIVE MARKETING, SEARCH ADS, AND ONLINE LANDING PAGES.
This can be as simple as updating the location based on your target
customer base and as complex as creating separate landing pages
with unique title and meta tags, appropriate Schema, photos,
Google Local Map, and an optimized URL.
AUTOMATE PAID SEARCH CAMPAIGNS ACROSSALL LOCATIONS.
Set individual budgets for each storefront that reflect the market
and your business’ goals. This step will go a long way in maximizing
your local marketing ROI while minimizing the effort to do so.
TRY DISPLAY ADVERTISING TO HYPER-TARGET CUSTOMERS BY INTERESTS AND GEOGRAPHY.
Location isn’t the only factor you can use to hyper-target your
customers. Paid search and social media advertising both allow
you to target customers by factors like age, gender, interests,
and more.
How Enterprise Brands Can Reap The Benefits Of Local Marketing
NO CONVERSION LEFT BEHIND:
BE PROACTIVE ABOUT YOUR LINKS, CITATIONS, AND REVIEWS ONLINE.
Ever since Google’s Local Pack shrunk from 7 results to 3, these
factors will be some of the most important for small businesses
and national brands alike. Identify store locations that need more
links, updated citations, and online reviews.
BUILD CITATIONS AROUND THE INTERNET AND CLEAN UP ALL EXISTING CITATIONS.
Focus on NAP (name, address, phone number) and aim for high-
authority websites like Google+, Bing Local, Foursquare, and Yelp.
Add new listings, clean up duplicates, and verify that all citations
are accurate.
ENSURE THAT YOUR STORE LOCATOR AND STORE LOCATOR RESULTS PAGES ARE MOBILE-FRIENDLY.
Mobile customers will likely be looking for these pages, so make
them easy to find and easy to use on a mobile device.
CONSIDER SOCIAL MEDIA ADVERTISING TO TAILOR SPECIFIC MESSAGES TO LOCAL DEMOGRAPHICS.
With hundreds of thousands of targeting combinations and 89%
reach accuracy (compared to the average online reach of 38%) for
narrowly target campaigns7, Facebook provides an unmatched
ability to unite customers with the brands they are most likely
to shop.
Testing is a critical step in any marketing plan, and it is particularly
important in local efforts. Many users conduct searches on their
phone and then visit the physical location to make a purchase,
which doesn’t provide a definite connection for
data-loving marketers.
To measure the effectiveness of local marketing efforts:
MEASURE CONVERSION RATES OF NON-SALES CALLS TO ACTION
Measure conversion rates of non-sales calls to action. When
measuring the conversion rates of local searchers on your
website, remember to look at the rates for smaller calls to action,
including links like “Find a Store,” “Contact Us,” and “Phone Calls.”
Concentrate on the full process of customer acquisition to identify
pages with low conversion rates and to view the full customer
cycle for mobile users.
MEASURE ROI WITH A VARIETY OF METRICS
It can be all too easy to look at sales as your only metric for
measuring ROI. Instead, try creating a waterfall flow of consumer
behavior to determine ROI. Look at impressions, clicks, store
visits, in-store conversion rates, and average order size to more
accurately estimate the success of your local marketing efforts.
A Key Step For Succeeding In Local: Test Your Metrics
NO CONVERSION LEFT BEHIND:
So many brands view success of online marketing as
online sales. However, it just isn’t that simple. Many
consumers want to transact in person and an online
sale just doesn’t take that into account.
“ “
Hyper-targeted marketing with a local context is much more
relevant to the consumer than generic, nationwide advertising.
Especially on mobile devices, where highly motivated customers
expect to see customized content, localized marketing can lead
to a drastically higher ROI — even for brands with hundreds or
thousands of storefronts.
Brands who implement hyper-targeted marketing efforts
are seeing better results with fewer wasted dollars, especially
when they use tools like Balihoo to quickly launch 10,000
micro-relevant campaigns.
Paid search software can improve your KPIs, remove 90% of manual
tasks, launch tens of thousands of powerful digital campaigns,
and increase Adwords Quality Scores by up to 35%. That’s not to
mention the ROI these efforts will have for your business.
The most successful national brands recognize the importance
of thinking local in their marketing. By localizing your creative
marketing, paid search ads, and landing pages and by targeting
customers through display advertising, your brand can drive a
higher ROI per dollar.
Local Marketing Can Lead To Better Results With Fewer Wasted Dollars
NO CONVERSION LEFT BEHIND:
10,000number of
micro-relevant campaigns you
can launch injust minutes
35%the potential
increase inyour AdwordsQuality Scores
90%percent of
manual tasks you can remove from
your day
Balihoo’s software solutions increase the ROI of localized digital
marketing for national brands and their agencies. By dramatically
improving the relevance of paid search, social, and display ads
over other campaign management solutions, Balihoo is proven to
increase click-through-rates and decrease average cost-per-click,
while removing manual tasks and setup time.
1. Search Engine Watch, Why Local Matters Even for National Advertisers
2. Balihoo Webinar: Three Reasons National Brands Must Lead Local Marketing
or Face Losing out
3. Integrated Digital Marketing, Are Big Brands Being Forced Out of the
Local Stack?
4. Clickz, Three Areas to Master in 2015 for National Brands Marketing Locally
5. LocalSEOCompanies, Local Search Statistics That You Should Know
6. Think with Google, Extra Space Storage Goes Local at Scale with Google
7. Nielson OCR, August 2013
About Balihoo
404 South 8th StreetBoise, ID 83702
www.balihoo.com1.844.BALIHOO