August 21, 2013
BIA/Kelsey Local Commerce Monitor: SMB Adoption of Mobile, Social, E-Commerce,
Loyalty Programs and Promotions
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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
• Special invitation: – LEADING IN LOCAL: SMB Digital Marketing
– Foremost event of its kind, specifically tailored to digital
marketing solutions that win for small and medium-
sized businesses (SMBs)
Steve Marshall Director of Research
Warren Kay Executive in
Residence
Peter Krasilovsky VP, Conferences and
Sr. Analyst
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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
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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 1999.
About 600 respondents. Two groups: Core and Plus
Spenders. This material is a meld of the two.
Recent survey: Wave 17, Q3 - 2013
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.
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SMB Priorities for Next 12 Months
57.6% 49.8% 44.4% 43.3%
0%
20%
40%
60%
80%
100%
Search Advertising &Marketing (SEM, SEO)
Print Advertising &Marketing
Social Media Analytics
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?
Advertising & Marketing Priorities
Next 12 Months
First Second Third (tie)
Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.
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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.
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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.
Biggest Losers
(in SMB usage):
• Directories
• Cable TV
• Newspapers
• Outdoor
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Media Spend on Advertising & Promotion
Declined
Total Spend on Media for Advertising
&
Promotion Declined
See note in Appendix. Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.
$37,556
$33,615
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Media Spending Intentions Cloudier
“Net Increasers” = Percentage of respondents intending to increase spending on advertising and promotion in next 12 months,
minus percentage intending to decrease.
39.2%
33.1%
6.0%
9.3%
2012 (Wave 16) 2013 (Wave 17)
0%
10%
20%
30%
40%
50%
Net Increasers
Not Sure
Spending Intentions for Media for Advertising
& Promotion for Next 12 Months
Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.
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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.
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Franchisors Heavily Committed to Online
Presence of Franchises
Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.
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19.0%
19.5%
20.4%
24.6%
30.6%
32.7%
34.9%
54.0%
60.4%
0% 10% 20% 30% 40% 50% 60% 70%
Blog
Other Social Site
Enhanced Listing in Mobile Site
Google+
Video (YouTube etc.)
Profile/Landing Page
Facebook Page
Website
Online Presence is Robust
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.
SMBs typically have a diversified (and growing) presence on the web.
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Social: Woven into Advertising & Marketing
Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.
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Franchisors Heavily Involved in Social
Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.
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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
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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
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Mobile: On a Roll (Mobile Payments)
Source: LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012) where relevant.
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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: www.biakelsey.com/infographics/
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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
[email protected] or (703) 818-2425
• 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
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Continuing the Conversation
• LEADING IN LOCAL: SMB Digital Marketing
Sept. 11-13, 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
www.biakelsey.com/LeadingInLocalAustin
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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
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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
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Enjoy the Incredible City of Austin
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.
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Appendix: LCM Sample
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.
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:
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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 17.