The Usage and Value of Local Search SourcescomScore study findings / marketer application

Stuart McKelvey, CEO - TMP Directional Marketing

Search with a Sharper Focus

Discussion Topics

• Sites used for Local Search shift as the consumer moves through the purchase process

– Utilization of multiple sites

• Difference in search activity:– Product vs. Service

– Category Familiarity

• Business selection factors:– Location / proximity

– Brand awareness

• The criticality of tracking offline consumer behaviors

Understand the use and value of on- and offline local search sources such as IYP, Print YP’s and online search.

Study Objectives

• comScore panel of 1 million online users

• 3,000 consumers completed the survey regarding online and offline Local Search

• Results released Q2 2007

Methodology

Study ResultsGeneral Survey

Internet is the primary source when combined, while PYPs are the leading stand-alone source for local business information.

Study Results

Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential.

The Purchase Funnel

Study ResultsUnderstanding Consumer Behavior

Awareness

Research & Consideration

Intent / Shop

Purchase

• Local Search happens near the bottom of the funnel

– Consumers know the what…now they need to decide on the where.

• However, from intent through purchase -consumers are still deciding on where to buy

Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential.

• Local Availability / Price

Local Product Search

Website, discounts, promotions, types of payment accepted

Information needs:

The Purchase Funnel

(1) Brand Familiarity(2) Proximity

Selection Factors:

Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential.

Study ResultsUnderstanding Consumer Behavior

Awareness

Research & Consideration

Intent / Shop

Purchase

Local Selection

Search Search EnginesEngines

Local Service Search

Address, maps, phone number

Information needs:

The Purchase Funnel

(1) Proximity(2) Brand Familiarity

Selection Factors:

Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential.

Study ResultsUnderstanding Consumer Behavior

Awareness

Research & Consideration

Intent / Shop

Purchase

Local Selection

IYPs & LocalIYPs & LocalSitesSites

Outside of local product based searches, findings indicate that General Search sites are used higher up in the purchase funnel

• General search users conduct more than double the amount of searches per session (12.8) than local & IYP site users (5.1).

• Users were less likely to have an actual business name in mind prior to search vs. IYP & Local site users.

• General search users were less likely to make a purchase post reference than IYP & Local site users.

Study ResultsGeneral Search User

Search Search EnginesEngines

IYPs &IYPs &Local SitesLocal Sites

Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential.

Based on findings, consumers were 40% more likely to have a successful localized search on an IYP or General Search site.

Study ResultsSearch Success & Satisfaction

80% 90% 100%

Local

IYP

General SuccessfulUn-Successful

Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential.

What happens in the absence of a successful search?

Study ResultsSearch Success & Satisfaction

5%

4%

5%

10%

11%

14%

24%

27%

0% 5% 10% 15% 20% 25% 30%

Other

Called DA

Choose another searchresult

Asked a friend

Changed search site

Used different searchquery

Utilized Print YP's

Gave up searching forinfoGave up search

Utilized Print Yellow Pages

Used different search terms

Used a different site

Asked a friend for info

Choose another search result

Called Directory Assistance

Other

Getting your basic business info correct allows you to capture 50% of this audience

To get closer to 100% you need to focus on local listing attributes

Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential.

Study ResultsCategory Details

19%

54%42% 39% 38%

28%

8%

14%

17%7%

18%

18%

4%

70%

32%41%

54%44%

54%

87%

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Study ResultsCategory Details

Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential.

In general, IYP & Local site usage only account for 30% of local search activity. However, usage varies widely by category.

54%

74%60% 58%

47%36% 34%

7%

15% 15%

13%

14% 17%

32%19% 25% 27%

40%50% 49%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

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HomeServices

HVAC MaidServices

Plumbing HomeSecurity

PestControl

CarpetCleaning

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IYP

8% 16% 47% 8% 8% 13%

Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential.

Share of Home Services searches:

Study ResultsCategory Details – Home Services

Usage changes based on consumer awareness of a category

Search with a Sharper Focus

The most common activities resulting from the online search were in-store visits and contacting the business via telephone.

Survey Results

Primary Source for Local InfoPost Search Activity

Survey Results

Purchase Activity

Offline

Online

Even traditional media drives offline activity

Other Media

30%28%

18% 17%

Source: NAA’s Newspaper Engagement Study, NAA July 2006

In-store Visit as a result of ads Purchases as a result of ads

30% 30%

21%

7%

Primary Source for Local InfoPost Search Activity

Other Media

Purchase Activity

Offline$363.5 Billion Online

$112 Billion

Source: Q3 2007 comScore Networks

Value of MediaWith so much activity happening offline ---

How do you ensure you are capturing the

full value of your advertising?

Methods of tracking offline activity / conversions

1. Good– Easy to implement, however not precise

2. Better– For marketers who lack the budget / infrastructure for more

advanced tracking solutions

3. Best– For the sophisticated marketer

Tracking Offline Activity

Tracking Offline ActivityGOOD: A Simple Approach

• Make assumptions based on change in sales volume

• In-store survey

• Test program

• Coupon / promotion code program

• Pay Per Call

• Unique content landing pages specific to traffic source (unique price etc.)

• Branch / dealer locator

Tracking Offline ActivityBETTER: An Intermediate Approach

Tracking Offline ActivityBEST: An Advanced Approach

Compare Online Activity to Offline Purchases

• Email List Members

• Contact Requests

• Website Registrations

Tracking Offline ActivityBEST: An Advanced Approach

Bridging online research with offline purchases

• Customer Call Back Survey

• In-store pick up option

• Call Tracking– Sales disposition

A national home services company was looking to generate additional lead volume at an efficient cost per lead (CPL) and cost per sale (CPS) rate. A desirable CPL target was set at $20 as well as a target CPS of $50.

Case Study

The Results (note: results are from Jan – Dec 2006):

oTarget CPL = $20

oTarget CPS = $50

Online Leads 4,860

Online Sales 1,781

CPL: $ 32.97

CPS: $ 89.97

Results measuring both online and offline performance:

Total Leads (online + phone) 10,377

Total Sales (online + phone) 5,093

CPL: $ 15.44

CPS: $ 31.46

Results measuring online performance only:

Both online and offline tracking is needed to realize the full value of each media, thus

assisting in the proper alignment of media mix and investment.

In Summary

Thank You.

Stuart McKelvey, CEO - TMP Directional Marketing