digital adoption by smbs: a preview of bia/kelsey’s latest smb research - local commerce monitor...

The Local Media & Advertising Experts

Webinar

Digital Adoption by SMBs: A Preview of BIA/Kelsey's Latest SMB ResearchAugust 20, 2014

© 2014 BIA/Kelsey. All Rights Reserved.

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Today’s Webinar Rapid discussion of Local Commerce

Monitor (LCM) Wave 18 (Q3/2014), BIA/Kelsey’s ongoing study of the advertising behaviors of small and medium-sized businesses (SMBs)

Talking points: Overview of survey questions Five Initial Takeaways from LCM 18 SMB marketing going forward

SPECIAL INVITATION: LEADING IN LOCAL: SMB Digital

MarketingForemost event of its kind, specifically tailored to digital marketing solutions that win for small and medium-sized businesses (SMBs)

Steve Marshall

Director of Research

Abid Chaudhry

Sr. Director Industry Strategy &

Insight


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Online survey of SMBs about media usage, spend, performance assessments, online presence, new tools (e.g., cloud-based services) channels, loyalty and discount programs – and much more.

Unique, fresh, trusted – since 1999.

Sample of 550 SMB respondents. Diversified across categories, market types, age cohorts.

This material is a meld of the two sub-samples, Core and Plus Spenders.

New survey: Wave 18, Q3/2014

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.

Quick Look: Local Commerce Monitor (LCM)


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LCM covers over 35 different media and platforms used by SMBs for advertising or promotion. The different media fall into these 10 top-level groups:

Broad Coverage of the Local Media Market

Video (e.g., website videos, YouTube)

Broadcast Local Directories

(print and online) Giveaway Items Community

Sponsorships

Online (e.g., search, display ads, blogs)

Traditional (e.g., direct mail, newspapers)

Mobile (e.g., search, SMS, display)

Local Coupons (print and online)

Social (e.g., Facebook, Twitter)


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LCM Wave 18:You asked, we delivered.


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Updated List of Media – Including: Pinterest Instagram Streaming audio Promoted Tweets

Social Engagement:Time spent on social media

Click Fraud: How big an problem?

Agency Relationships (and satisfaction)

In-Store Local Behavior:Use of mobile devices in-store when shopping

Franchise Marketing: Ad/marketing services desired from parent franchisor

Customer Incentives: Type of incentives used for customer loyalty programs

Using Transaction Data:Use of data and information collected in a transaction (sale)

Social Media TrackingCustomer lists: Keep list of FB “Likes”

New Questions for Wave 18 (2014)


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LCM Wave 18:(and much, much more)


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Full survey formally released Sept. 15, 2014 BIA/Kelsey Advisory Service Clients will receive full LCM

report Report also available for individual purchase

Key conference themes at upcoming conference, LEADING IN LOCAL: SMB Digital Marketing – Sept. 22-24 in New Orleans

LCM Wave 18 Release Schedule & Tie-In with Conference

http://www.biakelsey.com/LeadinginLocalSMBDigital/index.asp


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Turning Market Data into Action.

LOCAL COMMERCE MONITOR 18


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The Local Commerce Monitor identifies and sizes key long term trends and behaviors of U.S. SMBs.


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Key trends & behaviors that can be used to make data-driven market and product decisions.


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Top Five Findings Thus Far

Five Initial Key TakeawaysYou Need to Know from LCM

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Spend on advertising media has plateaued.

Takeaway 1:


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2011 2012 2013$20,000

$30,000

$40,000

$50,000

Q101Average annual spend by SMBs that spend for ad media.Source: BIA/Kelsey Local Commerce Monitor™ (LCM) surveys. Full sample. Outliers excluded (>$500k).

SMBs Are Spending About the Same on Ad Media

SMB Media Spend(Average Annual Spend)

WAVE 15

WAVE 16

WAVE 17

2014


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Spend for online presence and engagement is increasing strongly.

Takeaway 2:


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2011 2012 2013$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Q307

SMB Online Presence Spend(Average Annual Spend)

Average annual spend by SMBs that spend for online presence.Source: BIA/Kelsey Local Commerce Monitor™ (LCM). Full sample. Outliers excluded (>$30k). Methodology: Online.

SMBs Are Spending More on Presence

WAVE 15

WAVE 16

WAVE 17

2014


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That said -


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SMBs are integrating their online properties, as they start to build an online ecosystem.

Takeaway 3:


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More Online Properties Integrated

28.0%

72.0%

SMBs ReportingIntegration of Online

Properties

2013 (17)

Key types of

integration:

Same person responsible

Consistent design

Q303A.Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 18 (Q3/2014); LCM Wave 17 (Q3/2013). Full sample.

19.8%

80.2%

2014 (18)

= Online properties are integrated (to some degree)


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Discounts and promotions are growing and evolving.

Takeaway 4:


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Discounts and Promotions Getting “Baked In”

17.7%

82.3%

Q115Question wording:What percentage of your total business do you estimate will come from promotions such as discount deals, 'daily deals', coupons, or similar discount offers. (Please estimate the overall amount for the next 12 months)..

Total BusinessThat will come from Discounts

(Est. for Next 12 Months)

2013 (17)

Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 17 (Q3/2013.) Full sample. Methodology: Online.

Menu of Discount Options Keeps Growing

Prepaid deals (“Daily Deals”)

Online coupons Mobile deals Print coupons and

books Coupons in print

media Direct mail


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Social media has become a pivotal platform.

Takeaway 5:


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Social Media is Now Central to SMBs in Reaching Their Audience

Source: BIA/Kelsey Local Commerce Monitor™ (LCM) 18 Q3/2014. Full sample. Methodology: Online. Data is preliminary.

Social Media compared to all other

media categories (Wave 18):

#1 in Utilization

#1 in Share of Spend


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POLL

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Turning Market Data into Action.

LOCAL COMMERCE MONITOR 18


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The Future of SMB Marketing

What LCM says about…


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Customer interaction activity chain Acquisition; info capture; segmentation; tracking; offer

customization; email and marketing automation; 2-way dialog

Performance analytics To allocate digital spend

More resources going into social media and customer engagement Content!

Discounts and loyalty programs More robust

Modular cloud-based tools To support all of this!

Future of SMB Digital Marketing


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Want More LCM Data? See our series of LCM infographics

www.biakelsey.com/LeadinginLocalSMBDigital/SMB-research.asp

http://www.biakelsey.com/LeadinginLocalSMBDigital/SMB-research.asp

http://www.biakelsey.com/LeadinginLocalSMBDigital/SMB-research.asp


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Purchasing LCM Research

Interested in learning more about LCM or getting a custom cut for your business? Full LCM Wave 18 research available Sept. 15 Contact:

Steve Passwaiter, VP Business [email protected] or (703) 818-2425

Visit: www.biakelsey.com/LocalCommerceMonitor

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: www.biakelsey.com.

mailto:[email protected]

http://www.biakelsey.com/LocalCommerceMonitor

http://www.biakelsey.com/


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LEADING IN LOCAL: SMB Digital Marketing

Continuing the Conversation…


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Conference focused on the leading edge of SMB digital marketing innovation Digital/online media, local sales strategies, merchant outreach,

social media, local search, mobile strategies, customer retention solutions

Exclusive research from BIA/Kelsey’s Local Commerce Monitor (LCM) small business research and our U.S. Local Media Forecast 2015 Valuable data, insights and intel for the fall strategic planning

45+ speakers with distinct perspectives Solution providers to SMB marketers, startups, sales executives,

women media professionals

Conference Overview



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Beating Competitors with 100X Your Spending PowerOPENING KEYNOTE: Kevin Ryan, Co-Author, ‘Taking Down Goliath’

Segmenting SMBs and Super-Serving ThemSharon Rowlands, CEO, Reach Local

#NewParadigm: Social Media’s Shift of SMB Marketing & CommerceJoseph Devoy, Product Marketing Manager, Local Ads, Facebook

Groupon's New Marketplace: 'Anytime Anywhere' Dan Roarty, VP, Local Products, Groupon

Beyond Advertising: SMBs, Loyalty and PromotionsRob Bethge, VP, Perka (First Data)Stuart Wall, CEO, SignpostRandy Clark, SVP, Marketing, Mercury Payment Solutions

See full agenda & speakers:www.biakelsey.com/LeadinginLocalSMBDigital/agenda.asp

Speaker & Session Highlights

http://www.biakelsey.com/LeadinginLocalSMBDigital/agenda.asp

http://www.biakelsey.com/LeadinginLocalSMBDigital/agenda.asp


http://www.biakelsey.com/LeadinginLocalSMBDigital/Bethge.asp

http://www.biakelsey.com/LeadinginLocalSMBDigital/Clark.asp

http://www.biakelsey.com/LeadinginLocalSMBDigital/Wall.asp


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Save $200 with Promo Code: LCMSMB

Join Us In the Incredible City of

NEW ORLEANS, SEPT. 22-24


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© 2014 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.

Questions & Comments:

The Local Media & Advertising Experts

Stephen MarshallResearch [email protected]

Abid ChaudhrySenior Director of Industry Strategy and [email protected]





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