all facebook places_presentations_string v6 6292011

Greg SterlingSterling Market Intelligence/Opus Research

June 29, 2011

Facebook Places: Deals and Store-Level Marketing

About Me

• Jobs: lawyer, editor, startups, analyst, blogger

• Coverage: search, directories, “social media,” mobile, multi-channel shopping, SMB advertising, etc.

• Twitter: @gsterling

Macro Market Trends

Local

Mobile

Social

New models/social commerce

Unprecedented noise/competition

LocalSocial

Mobile

Local-Mobile-Social All Connected

• Mobile devices a bridge between online and point of sale

• Mobile helps people see importance of local

• Powerful capacity to impact behavior in real time

• Mobiles inherently social, enable immediate “conversations” (pictures, reviews, feedback)

Quick Refresher on Local (Online-Offline)

• 95% of retail transactions happen in stores

• E-Commerce about 4.5% of total retail Q1

• Internet influencing growing % of offline sales

Big and Small Businesses on FB

• According to Goodzer: 38% of “brick and mortar” retailers with websites, in SF and NYC, also have a Facebook presence

• 40% to 70% of SMBs say they have a “presence” on Facebook

• Most of the time a personal profile. Many SMBs don’t know the difference

Facebook Deals: Social Deals

Facebook Deals: Check-in Deals

• Like more traditional coupons, reward presence on premises

• 4 types: individual, friend, loyalty and charity

• Motivate check-ins

• Only available “nearby” on mobile (but promoted on FB or elsewhere)

33% of Facebook Traffic Mobile

67.3%

18.8%

4.4%

4.5%

4.1% 1.0%

PC accessm.facebook.comiPhoneAndroidRIMOther mobile apps

Source: HubSpot analysis of 70,000 Facebook public posts, May 2011

Participation in Deals Programs

Q39: Some companies can alert you to special deals, discounts, products or services tailored to your personal tastes and/or location. In order to offer this level of customization, companies access your location via your phone/mobile device, or use basic information about you, such as your age, gender, and interests. Do you currently participate in any such programs? Source: AT&T Interactive-Nielsen; Local Mobile Searchers (n=1526)

26% of Local-Mobile Users Do Deals

11

1. Coupons

2. Word of Mouth

3. Advertising inserts

4. TV

5. Newspapers

6. In store promotion

7. Direct mail

8. Email

9. Cable TV

10. Internet advertising

Coupons Impact Decisions

“Re holiday advertising, which of the following influences you to shop at a particular store?”

Source: NRF/BIGResearch, 12/08 n=8,860

• Recommendation from a friend — 52%• Location of the business — 10%• A deal — 8%• Familiarity with the owner — 3%• Article or review from a critic — 3%• Online Reviews — 2%• Other — 20%• Don’t know/Refused — 2%

Source: CityGrid survey May, 2010 n=1,006

Deals Trump Reviews

“What is the number one thing that influences you to try a local business?”

Q21: Which of the following are reasons you clicked on advertisements on your mobile device in the past? – “It was…” Source: AT&Ti-Nielsen: All those who ever clicked on advertising (n=865)

Reasons for Responding to Mobile Ads

• 72% of the mobile audience purchases local deals

• 44% purchase local deals at least once a month

• Deal purchasing behavior stays relatively consistent across age groups and gender.

• Those ages 25-44 are most likely to purchase a local deal.

Source: JiWire Q1,2011

Deal Frequency, Demographics

Source: Lightspeed Research, April, 2011 n=3,300

74% of consumer-respondents purchased 4 or fewer deals in the past 12 months. Contrast vs. JiWire data showing much higher frequency

Alternative View of Frequency

Source: JiWire Q1,2011

Deal Sharing Prevalent

Source: Local Offer Network, March 2011

Top Deal Categories (% of Deals)Food & Drink

Beauty, Spa, Massage

Home Products/Services

Fitness & Nutrition

Apparel

Sports & Recreation

Health, Medical & Dental

Kids

Photography

Arts/Entertainment

Combined Other

24%

19%

8%

7%

6%

4%

4%

4%

4%

3%

18%

65% of Deal Buyers Existing Customers?

Frequent customers New customers Infrequent customers Former customers

38%

31%

27%

4%

Source: Foresee Results Q2 2011 (n=22,000)

10.4%

12.5%

77.2%

If you have offered a "daily deal" with a group buying site (i.e., Groupon), would you do it again?

Yes

No

I've never offered a daily deal.

Opus Research, 2/11 n=6875 small businesses

• Yes: 45.5%• No: 54.5%

Rice study: 42% of SMBs who had used group buying (Groupon in particular there) would not repeat

But Would You Do It Again?

Source: Business Insider reader survey, March 2011 n=943

How Real Is ‘Deal Fatigue’?

Greg Sterling greg.sterling@gmail.com

Twitter.com/gsterling

Follow or Contact MeTo Follow or Contact Me

Jeff FergusonCEO, Fang Digital Marketing

jeff@ferguson.com@fangdigital@countxero

Case Study Geo-targeted Gordmans Campaign

Veronica D. Stecker Marketing and Media Planner Gordmans, Inc.

Veronica.Stecker@Gordmans.com

Google Places

Facebook Places

CTR And CPC by Industry

Grand Openings

Easter Egg Hunt Campaign

Online Coupons

Memorial Day Posts

Guest Complaints

Dashboarding

Thank You!

Veronica D. Stecker Marketing and Media Planner Gordmans, Inc.

Veronica.Stecker@Gordmans.com