Seattle WA September 19, 2013

Transcription

1 Seattle WA September 19, 2013

2 Are we having fun yet?

3 Dude, where s my money?

4 Where are we going so fast?

5 Not fun, less money.

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8 Unrelenting Competitive Sales Pressure Continues Attempts: Mean : 18.2 Median :10 Pitches Taken: Mean : Many different media work to earn your business as an advertiser. In an average month, how many total attempts are made to speak with or reach you about any advertising opportunity? N = In an average month, how many advertising sales people do you speak to, in person or on the phone, among these incoming efforts? N = 778

9 YOY Spending Expected To Grow Moderately Avg. Media Bought = 5.2 None Ads Bought 60% Plans % % 15 or more Don't know/not sure 0% 10% 20% 30% 40% 50% 0% Spend more money Spend the same amount Spend less money Don't know 1. To begin, in how many different media outlets do you currently advertise? N = Compared with what you spent on advertising in 2012, will you spend more money, less money, or about the same in 2013? N = 775

10 Among their own clients, Newspaper buys are still strong Media Bought Local Newspapers Online/Digital Other Local Print Pubs Direct Mail Radio Printed Directories Mobile Outdoor and Out of Home Cable TV Stations Broadcast TV Stations Telemarketing Cinema (Ads in local movie theaters) Other 0% 10% 20% 30% 40% 50% 60% 70% 80% Q 6 Please estimate what portion of your total ad spending next year will be spent on the media listed below. Estimate the PERCENTAGE each will get in [Amounts should total to 100%.] N = 657

11 Yet the Newspaper share still falling Q 6 Please estimate what portion of your total ad spending next year will be spent on the media listed below. Estimate the PERCENTAGE each will get in [Amounts should total to 100%.] N = 657

12 Total Spending Ad/Marketing Spend Expected to Rise over 2012 Direct vs. Non-Ad Gross Revenues $ 2,335,802 Total Combined Budgets $ 97,889 Net of Revs 4.19% "Non-Ad" Marketing 34% Direct Advertisi ng, 68.3% $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $84,547 $89,279 $30,000 $20,000 $10,000 $7,000 $9,000 Direct Advertising "Non-Ad" Marketing $ Total Ad and Marketing Spend Mean 2013 Total Ad and Marketing Spend Median 38. Not all advertising and marketing money is spent on ads alone; what percentage of your advertising and marketing budgets is spent on advertising versus "non-advertising" expenses? [Total should be 100%.] 37. What do you expect your total direct spend on advertising and marketing efforts will have been in 2012 and will be in 2013?

13 Increase in Online continues most pronounced Q7 Thinking of your total advertising budget, as compared with 2012, do you think your spending will increase, stay the same, or decrease in the following categories in 2013: [Choose one response for each item listed below.] N = 170

14 Newspaper Web still strong, but local online #2 Q8 In which of the following LOCAL AREA ONLINE media do you expect to advertise in 2013 through paid banner, sponsorships, or other display or listing advertising? [Select all that apply.] N = 240

15 Overall Online Marketing Strong Q 10 Which of the following ONLINE MARKETING do you expect to engage in 2013? [Select all that apply.] N = 161

16 Implied Media 2013 Spending Mean = $37,850 Median = $6,500 Q 6 Please estimate what portion of your total ad spending next year will be spent on the media listed below. N = 253

17 Implied Media Spending (Detail) Media Media Share of Spend Implied 2013 Spend Mean Implied 2013 Spend Median Local Newspapers 28% $ 10,598 $ 1,820 Online/Digital 17% $ 6,435 $ 1,105 Other LocalPrint Pubs 11% $ 4,164 $ 715 Direct Mail 10% $ 3,785 $ 650 Radio 9% $ 3,407 $ 585 Printed Directories 6% $ 2,271 $ 390 Broadcast TV Stations 5% $ 1,893 $ 325 Mobile 4% $ 1,514 $ 260 Cable TV Stations 4% $ 1,514 $ 260 Outdoor and OOH 3% $ 1,136 $ 195 Cinema 0% $ - $ - Telemarketing 0% $ - $ - Other 4% $ 1,514 $ 260 Q 12 Thinking about your company's investments in ONLINE and MOBILE advertising and marketing, what percent of your total ONLINE and MOBILE ad and marketing spend do you expect will go to each type listed below in your spending for 2013? [Amounts should total 100%.] N = 253

18 SMBs love their Web because it delivers customers Customer Source Referrals from other customers Referrals from friends and family Company website Events Print newspaper ads Professional referrals Social media Radio ads Other print media ads marketing Direct mail TV ads Yellow Pages Online ads Outdoor/Billboard Industry organizations Mobile campaigns Other (please specify) 4% 8% 26% 25% 24% 23% 22% 20% 16% 13% 12% 47% 46% 45% 43% 69% 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% 75% Q 36 Which of the following sources best provide you with new customers? That is, how do people most often hear about your services and products who have not shopped with you or visited your business before? [Select all that apply.] N = 169

19 Social Networks reaching ubiquity Social Network Page Mean N Fans: 1,001 Median N Fans : % 85% Yes No Don't know Q 13 Does your company maintain a Social Network presence or page (such as Facebook, LinkedIn, Twitter, etc.)?n = 116 Which of the following are a part of the key metrics that you use to measure the success of your social marketing programs? [Select all that apply.] N = 152

20 Company Web garners greatest share of attention and funds Q 12 Thinking about your company's investments in ONLINE and MOBILE advertising and marketing, what percent of your total ONLINE and MOBILE ad and marketing spend do you expect will go to each type listed below in your spending for 2013? [Amounts should total 100%.] N = 188

21 Implied Top Spend of $6K on Company Web Online/Digital 17% $ 6,435 $ 1,105 Mobile 4% $ 1,514 $ 260 Q 12 Thinking about your company's investments in ONLINE and MOBILE advertising and marketing, what percent of your total ONLINE and MOBILE ad and marketing spend do you expect will go to each type listed below in your spending for 2013? [Amounts should total 100%.] N = 121

22 Implied Digital Spend (Detail) Answer Options Spend Share Mean Spend Median Share Response Count Company website Social Media 37% $ 2,381 $ % $837 $ % $ 837 $ Search engine optimization (SEO) Banner/Display ads - Run of Sites (ROS) Paid search/keywords (SEM) Mobile (portion devoted to any type of mobile marketing or advertising) Banner/Display ads - Targeted Display Sponsorships Business Directory listings Online classifieds Online/Streaming Video Other Online advertising and marketing 6% $ 386 $ % $ 386 $ % $257 $ % $193 $ % $193 $ % $ 193 $ % $129 $ % $ 129 $ % $ 64 $ % $ 322 $ Q 12 Thinking about your company's investments in ONLINE and MOBILE advertising and marketing, what percent of your total ONLINE and MOBILE ad and marketing spend do you expect will go to each type listed below in your spending for 2013? [Amounts should total 100%.] N = 170

23 Mobile, Anyone? Pitched Mobile 11% 28% 61% Yes No Don't know Q 16 Has your company been pitched by any vendors to conduct mobile-based advertising or marketing campaigns or campaigns with mobile elements in the past 12 months? N = 180

24 Deals? Not so much. Deals DK 2% 35% 30% 30% Satisfaction 33% Yes 21% 25% 20% 15% 16% 19% No, 77% 10% 5% 2% Yes No Don t know 0% Very satisfied Somewhat satisfied Not very satisfied Not at all satisfied Don't know/no answer Q 22 Have you participated in a "Deal of the Day" or similar program where consumers purchase a certificate or coupon at a discount for your business? N = 175 How satisfied have you been with your overall "Deal of the Day" experience? N = 43

25 Digital & Mobile Presence MATTERS 60% 50% 53% Importance of Digital Visibility 40% 36% 30% 20% 10% 7% 3% 2% 0% Very important Somewhat important Not very important Not at all important Don't know/does not apply to us Q 32 How important is it to your company to have "high visibility" on web and mobile platforms so customers and prospects can easily find your website and your physical location? N = 172

26 Little Impact seen from mobile Showrooming See Customers Showrooming Physical Location 45% 30% No, 17% 15% 0% Very often Somewhat often Not very often Not at all often Does not apply Don't know Impact of Showrooming Yes, 83% 45% 30% 15% Q 26 Does your business maintain a brick and mortar location from which you sell physical goods or provide services directly to customers or other businesses? N = 174 0% Generally helps business and sales Generally hurts business and sales Little or no impact positive or negative Does not apply to our business Don't know Showrooming is defined as the shopping process in which someone visits a store in person to look at, research and/or consider purchasing a product and then either uses their phone while in store or goes home to go online to evaluate different options, sources or prices. How often do you see your customers "showrooming?"

27 As Social Search begins to emerge, more need to know what needs to be done to play Social Sites Used Facebook or FacebookConnect 75% GooglePlaces/Google+ 44% Twitter 30% Yahoo Local Yelp Pinterest Foursquare Bing 19% 18% 17% 15% 13% Tumblr 3% Other (please specify) 9% None of above 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q 29 On which, if any, of the following websites does your business or company have a listing that your business or company wrote and placed? N = 175

28 SMBs directly manage their digital and mobile presence, but challenges exist Direct Postings 7% 21% 73% Yes No Not applicable Q 31 Does your company write and post content for Facebook, business listings, business reviews, advertorial (native) content or other placements? N = 175 Q 31 How easy or difficult are any of the following in terms of maintaining an accurate and effective presence on the Web and in directories? N = 170

29 Detail on Managing Digital Presence 35% 30% 25% 20% 15% 10% 5% 0% Creating text to post Keeping up with Facebook Monitoring comments about your business on various forums Monitoring placed listings Keeping up with Twitter Monitoring "free" listing not submitted by your staff to an online publisher Buying keywords Maintaining a presence on mobile phones and apps Very easy Somewhat easy Neither easy nor difficult Somewhat difficult Very difficult Q 6 Thinking of your total advertising budget, as compared with 2012, do you think your spending will increase, stay the same, or decrease in the following categories in 2013: Max N = 170

30 Collecting data, but not using in relationship Customer Database Loyalty Programs No, 21% Don't know, 4% Yes, 76% Don't know, 1% No, 78% Yes, 21% Yes No Don't know Yes No Don't know Q 33 Does your business maintain a "current customer" database or list for use in marketing and sales? N = 172 Q 34 Does your store or business maintain a formal "loyalty rewards" or "frequent buyer" program? N = 172

31 Social Search definitely on SMBs radar Q 35n Which of these digital and electronic programs or services will you use or are considering using in 2013? [Select one response for each item.] N = 123

32 Social Network Support Tops Digital Services Bought or Sought Q 39 Which of the following advertising and marketing support services do you currently purchase or would like to have available from your media providers? [Select all that apply.] N = 116

33 SMBs optimistic on economy, but good help is still hard to find Q 40 How would you rate your overall expectations about local area economic conditions over the next few time periods?n = 116

34 Ad Spending In Your Market Test Drive at or call

35 Questions? Contact: Greg Harmon Senior Research Analyst Borrell Associates, Inc Contact: Jim Brown Account Manager Borrell Associates, Inc

36 Background And Methods Respondents were solicited by sent from local media to their current and past clients, as well as prospects who had contacted them about possible advertising opportunities. Lists were assembled by our local partners. Respondents are offered the incentive of participation in a drawing to win an ipad, awarded every six months. Further information and details available at or by ing gharmon@borrellassociates.com.

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