BIA/Kelsey Local Commerce Monitor: SMB Adoption of Mobile, Social, E-Commerce, Loyalty Programs and Promotions

Transcription

1 BIA/Kelsey Local Commerce Monitor: SMB Adoption of Mobile, Social, E-Commerce, Loyalty Programs and Promotions August 21, 2013 For audio: Listen through your speakers or dial in. Once you choose, please do not change setting. Dial in: +1 (415) Access Code:

2 Today s Agenda Rapid discussion of recent findings from Local Commerce Monitor (LCM), BIA/Kelsey s ongoing study of the advertising behaviors of small and medium-sized businesses (SMBs) Topics to be covered include mobile, social, loyalty and promotions and e-commerce Peter Krasilovsky VP, Conferences and Sr. Analyst Special invitation: LEADING IN LOCAL: SMB Digital Marketing Foremost event of its kind, specifically tailored to digital marketing solutions that win for small and mediumsized businesses (SMBs) Warren Kay Executive in Residence Steve Marshall Director of Research 2

3 LEADING IN LOCAL: SMB Digital Marketing Key conference themes: The growing importance of web presence in the marketing mix The emergence of transaction marketing and commerce Optimizing sales channels Leveraging social and mobile Local search 3

4 Helping Set the Stage with Nuggets from LCM Online survey of SMBs about media usage, performance assessments, and the use of mobile, social and loyalty programs by SMBs. Unique, fresh, trusted since About 600 respondents. Two groups: Core and Plus Spenders. This material is a meld of the two. Recent survey: Wave 17, Q Survey details in Appendix. Results based on 600 responses have a confidence interval of +/- 4.0% at the 95% confidence level. The confidence interval is larger for those questions that were asked of just a subset of the full sample. 4

5 SMB Priorities for Next 12 Months Q: There are many ways that you can advertise, market and promote your business. When you think broadly about the various options, what is your priority for the next 12 months? 100% 80% 60% First Advertising & Marketing Priorities Next 12 Months Second Third (tie) 40% 20% 57.6% 49.8% 44.4% 43.3% 0% Search Advertising & Marketing (SEM, SEO) Print Advertising & Marketing Social Media Analytics Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 5

6 Number of Media Used Declined Average Number of Different Media Used for Advertising & Promotion Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 6

7 Number of Media Used Declined Average Number of Different Media Used for Advertising & Promotion Biggest Losers (in SMB usage): Directories Cable TV Newspapers Outdoor Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 7

8 Media Spend on Advertising & Promotion Declined Total Spend on Media for Advertising & Promotion Declined $37,556 $33,615 See note in Appendix. Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 8

9 Media Spending Intentions Cloudier Spending Intentions for Media for Advertising & Promotion for Next 12 Months 50% 40% 39.2% 33.1% 30% Net Increasers 20% 10% 6.0% 9.3% Not Sure 0% 2012 (Wave 16) 2013 (Wave 17) Net Increasers = Percentage of respondents intending to increase spending on advertising and promotion in next 12 months, minus percentage intending to decrease. Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 9

10 Where s the Spending Going? 40.9% of SMBs pay for regular assistance in maintaining their online presence (website, profile/landing pages, social network pages, blog, etc.) On average, they spend $4,704 annually, an increase over the prior waves. See note in Appendix. Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 10

11 Franchisors Heavily Committed to Online Presence of Franchises Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 11

12 Online Presence is Robust SMBs typically have a diversified (and growing) presence on the web. Website 60.4% Facebook Page 54.0% Profile/Landing Page LinkedIn Video (YouTube etc.) 32.7% 30.6% 34.9% Google+ Enhanced Listing in Mobile Site Other Social Site Blog 24.6% 20.4% 19.5% 19.0% 0% 10% 20% 30% 40% 50% 60% 70% We asked respondents to only count a social site if they have a page specifically for their business on that site. Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 12

13 Social: Woven into Advertising & Marketing Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 13

14 Franchisors Heavily Involved in Social Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 14

15 Mobile: On a Roll (More Mobile Advertising) Used Mobile A Year Ago (Wave 16 Q3/2012) Using Mobile Now Wave 17 (Q3/2012) Increase in use by Plus Spenders: 40% (Wave 16) to 53% (Wave 17). Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant 15

16 Mobile: On a Roll (More Mobile Sites) Mobile Website A Year Ago (Wave 16 Q3/2012) Mobile Website Now Wave 17 (Q3/2012) Increase in use by Plus Spenders: 33% (Wave 16) to 45% (Wave 17). Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant 16

17 Mobile: On a Roll (Mobile Payments) Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant. 17

18 Remembering All the Data Data can be hard to digest! We ve created a series of infographics to make LCM data easier to absorb. See them here: 18

19 Local Commerce Monitor (LCM) Research Interested in learning more about LCM or getting a custom cut for your business? Contact: Steve Passwaiter, VP Business Development spasswaiter@biakelsey.com or (703) BIA/Kelsey is helping clients LEAD IN LOCAL through industry and local market forecasts, advisory research, small business surveys, conferences and more. Learn more on our website: 19

20 Continuing the Conversation LEADING IN LOCAL: SMB Digital Marketing Sept , Austin, Texas Hundreds of attendees, speakers and sponsors focused on the technologies and best practices that will have staying power and impact the solutions companies develop and deliver to SMBs Save $200 on new registration with code: LCMWEBINAR 20

21 Session and Speaker Highlights More exclusive research from BIA/Kelsey s Local Commerce Monitor (LCM) small business research SMB franchise leaders from Ben & Jerry's and 24 Hour Fitness share insights from the stage Leaders from social, mobile and loyalty and promotions talking about how they are bringing the latest solutions to SMBs 21

22 Networking and Transacting Business BIA/Kelsey s conference attendees are high-level company executives and managers with decision-making power Attendees enjoy numerous evening receptions, breaks, lunches throughout the conference all designed to maximize business networking opportunities 22

23 Enjoy the Incredible City of Austin 23

24 Questions & Comments: Stephen Marshall Copyright 2013 BIA/Kelsey. All Rights Reserved. This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

25 Appendix: LCM Sample The material in this webinar was prepared using findings from the Local Commerce Monitor (LCM) Wave 17 Survey, Core sample - conducted in Q3/2013. Sample characteristics: Sample Segment Sample Size Minimum Annual Spend* Average Annual Spend** Core 303 No Minimum $2,565 Plus Spenders 265 $25,000 $73,146 *Minimum annual spend on media for advertising and promotion (i.e. not including spend on website or other permanent web assets). **Average annual spend on media for advertising and promotion, excluding outliers. For Core sample, outliers are SMBs spending over $40,000 annually. For Plus Spenders sample, outliers are SMBs spending over $500,000 annually. Results based on 300 responses have a confidence interval of +/- 5.7% at the 95% confidence level. The confidence interval is larger for those questions that were asked of just a subset of the full sample. The data in this document is still subject to quality assurance finalization. 25

26 Appendix: Notes Slide 5: Average annual spend for Core sample on media for advertising and promotion, excluding outliers (for the Core sample, outliers are defined as SMBs spending over $40,000 annually). We use several metrics to measure average spend, of which this 3-year trend for the Core sample is the clearest marker of what we believe is a trend in media spending. Average annual spend for the Plus Sample showed a similar reduction, from Wave 16 to