Here’s a nice graphic from the folks at Milo.com showing the percentages (based on US govt. data) of shopping and buying that occur online vs. in store by category (click to enlarge):
All the offline numbers are in the high 90s.
Here’s a nice graphic from the folks at Milo.com showing the percentages (based on US govt. data) of shopping and buying that occur online vs. in store by category (click to enlarge):
All the offline numbers are in the high 90s.
The following is a piece by Bill Dinan, President of Telmetrics, about Google’s recent expansion of its Click to Call mobile advertising program and its potential larger significance in the market. The opinions are solely those of the author . . .
While search monetization for Google has always been about clicks and measuring online activity, this move validates the complementary relationship between online search and offline consumer purchasing behavior. Online drives offline, so clicks and calls go hand in hand. Add mobile to the equation and Google recognizes a revenue opportunity in tracking the connection between mobile searching and the resulting calls. Advertisers benefit because they get a more complete view of the response generated by a mobile advertising program.
But Google’s approach is different–other providers’ monetization models price calls separately and typically higher than clicks. You have to wonder why Google has come out with a lower price for calls, when industry experience demonstrates calls can be monetized at higher levels than clicks. Our guess is that they wanted to keep the mobile model simple for advertisers that are already comfortable with paying for clicks while still developing a revenue stream that accounts for the offline connection.
Does Google’s move into click-to-call hurt other online properties offering pay per call solutions?
No, because Google’s move is consistent with their click-based model. Google’s model is not pay per call – it is a complementary model on the mobile device but it is still pay per click. Click-to-call doesn’t automatically translate to pay per call. However, Google’s move reinforces the need to track consumer online-offline searching and buying patterns.
Have national advertisers showed interest in mobile click-to-call or pay per call ads?
National advertisers have showed interest in mobile advertising, but more importantly they are looking for more transparency and performance-based advertising across all traditional and digital mediums to validate their ad spend.
Click-to-call provides similar data to a click-based model and those advertisers already used to pay-per-click via Google will find that click-to-call is a natural extension and complementary. Those advertisers already using call-based metrics either through pay per call or subscription programs will still be looking for true call response data which by virtue of the information attached to calls provides richer data about consumer behavior.
Last night Google announced the inclusion of bike directions to car, public transit and walking directions options on Google Maps. According to Google Maps’ Shannon Guymon this was one of the most requested missing features on Google Maps.
The new bike directions also provide a new view on maps (see below), one that is more “bike friendly” and emphasizes some features while de-emphasizing others (e.g., freeways, busy roads).
The directions and underlying data to support bike directions come from Google’s Street View effort as well as selected third parties that have already mapped biked trials (i.e., Rails to Trails Conservancy). Here’s an example of the difference between driving and bike directions from AT&T Park (baseball stadium) in San Francisco to the Golden Gate Park:



The rest of this post is on SEL.
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See related: Street View Best Streets Awards in the UK and Edit Places Using Street View images.
Yelp is introducing a series of webinars for small business on various topics, which include how to use Yelp more effectively. Here’s the Yelp blog post that went up today:
In our ongoing effort to educate business owners on ways they can use Yelp, we are excited to kick off Yelp for Your Business, a webinar series. The inaugural webinar will be held this Thursday, 3/11 at 3pm PT/6pm ET. The subject will be “How to use the free tools on Yelp to promote your business.” Click here to learn more or to register for the webinar.
This is smart and Yelp should have done this a year ago. But better late . . . This will not only build good will and help address the myths and misconceptions but it will turn into advertising sales as well.
I got this note from someone this morning:
I was wondering if you have heard/know of an advertising campaign that Google is running on radio promoting the fact that they have a $300 yellow pages product.
The product from what I have been told is their listing enhancement product. I received a call from one of my colleagues indicating they heard a radio ad on headline news on Sirus where Google was promoting this product and used the yellow pages name a number of times throughout the ad.
Has anyone heard this? If so is the description above correct?
I had a very interesting discussion yesterday with Ken Kalb of Analog Analytics, a company which can either be described as a deals/coupon and mobile (SMS) marketing platform or an analytics provider for traditional media. But of course it’s both.
Here are the relevant paragraphs from the release:
Analog Analytics today officially launches its software platform to deliver highly monetizing interactive coupons, gift certificates and “Bigger Better Deals” for local publishers and advertisers in any media. Now, publishers of all types, including online, mobile, newspaper, TV, radio, motion picture and billboards, will benefit from the much higher click-through rates (CTR) of two- to ten-percent for these highly interactive offerings. This CTR amounts to 10 to 100 times greater than the national average for display ads.
The Analog Analytics platform provides publishers which have struggled to make money with their online content with a mechanism to increase their ad revenue regardless of the media. It enables advertisers or publishers to create online, mobile or a text-message call-to-action print coupons or gift certificates, integrating and optimizing the performance of both traditional advertising and online interactive. With this solution publishers leverage advertising in multiple media concurrently from the software-as-a-service platform and immediately increase their ad revenue.
Analog Analytics has already signed up a number of substantial customers including Village Voice Media, Local.com, Wick, Media News Group, the nation’s leading weeklies as well as 850 publishers and 2500 advertisers nationally.
I could now write 5K words. But I don’t have time. So I’ll try and hit a few high points.
Analog Analytics is a platform licensed to mostly traditional media companies (as indicated in the list above). It enables publishers to offer a more “robust” coupon and deals solution in general and to better compete with the emerging “threat” from what I’ll call the “Groupon Segment.”
The following is an example of a group-buying deal offering (“bigger, better deal“) from the company. In a sort of tongue-in-cheek way Kalb referred to this as “the Groupon killer.” It’s not but it gives traditional publishers a weapon against these fast-growing group-buying sites.
Otherwise the company enables the local sales channel to sell/offer more traditional coupons and gift certificates:
The publisher can price and package any of this how it desires. Whereas Groupon, et al. offer an effective but limited new customer acquisition tool — I characterized it to Kalb as a “one-night stand” — the array of options here provide both new customer acquisition and CRM/loyalty capabilities. And, as I said, the flip side is traditional media analytics.
People redeem the coupon or opt-in to the SMS list and the publisher (and advertiser) sees how effective the traditional medium is — or isn’t as the case may be. But as the Analog Analytics release points out response rates with offers/deals are at least 10X vs. traditional display advertising online.
Coupons/offers/deals isn’t merely a cute, consumer-friendly trend, it’s a digital and direct marketing phenomenon that’s here to stay. The Groupon proposition to the SMB is “no risk”: “you only pay if people buy.” It doesn’t get any more CPA than that.
Kalb also emphasized with me that these sites enable local businesses to book revenue in advance. The new products in the coupon and group-buying segments are “tangible” and easily understood by SMBs compared with clicks, “Which is an abstraction to small business,” explained Kalb.
The market is changing quickly now for SMB marketing. Phenomena like social media and couponing are becoming more visible and effective tools and they often “cut out the middle man,” as people used to say. In this case the “middle man” is the traditional sales channel/publisher.
If you take a deeper look it starts to become clear that “Grouponing” is just the clever packing of a more concrete form of direct digital marketing.
The WSJ and TechCrunch cover Forrester’s relatively bullish e-commerce forecast. This is from the WSJ:
In 2009, e-commerce in the U.S. managed to buck the recession that dragged down the rest of retail, growing 11% to reach $155.2 billion, according to Forrester Research. The research firm is predicting in a report out Monday that e-commerce in America will grow another 11% this year.
The Forrester e-commerce number from 2009 — 6% of total retail sales — is inflated. Forrester uses a smaller sample than US government data, which shows e-commerce at 3.8% of total US retail sales (in Q4).
Here’s the more interesting part of the Forrester data, as reported in the WSJ:
And a new area of focus for retailers isn’t online buying at all. Rather, it us using the Internet and mobile technology to influence sales that happen in stores. Already Forrester’s study found that 42% of all retail purchases in 2009 – worth some $917 billion – were influenced by the Web in some way. By 2014 that figure is likely to jump to 53%.
These figures are probably off as well. The online –>offline number should be larger. Recall that Compete/TNS conducted a survey in which it found that 94% did research online prior to (online) purchase. Prior studies by comScore, BIGResearch, Yahoo! and others have found 80% to more than 90% of consumers buying in-store have consulted the Internet for information prior to purchase.
The challenge, in gaining a true picture of consumer behavior, is measuring this online–>offline impact on a campaign basis. There are various methodologies to try and get at this: call tracking, coupons, surveys, sales lift, attribution modeling.
Ironically, as I’ve said in the past, mobile will likely boost e-commerce as people visit stores to check out products and then buy online if they find a better price.
Companies and people in local seem to be on the lookout for new sources of traffic, new business partners and so on. One area that’s largely untapped is the Associated Cities consortium of geodomains (e.g., NewOrleans.com). This is a confederation of 150 local sites that collectively have more than 10 million uniques per month.
The organization has a conference in New Orleans at the end of April. I have a conflict or I’d be speaking and attending. However, if you want to speak, sponsor, pitch a session or attend you can contact Patrick Carleton, Executive Director, Associated cities. His contact details can be found on this page.
If you’re a content syndicator, local channel, platform provider, etc . . . this is a potentially eager audience. And these sites also represent another potentially great source of local traffic.
It may sound like I’m selling but I genuinely think there’s an interesting opportunity and this is a neglected group of sites that are potentially highly valuable to those in the local space.
Here are some interesting stats drawn from an article in the NY Times about people starting their own businesses at 50 and older:
Roost CEO Alex Chang sent me a note last week alerting me to the launch of the company’s app on Facebook, “Social Real Estate.” It enables local agents to create a “real estate” tab on their pages full of market data and other information.
Chang explained, “The Roost app allows a local agent or broker to configure a free ‘Real Estate’ Tab on their business page within minutes. It leverages external API’s to bring in true local market real estate, schools and lifestyle data. This is just the first iteration of the tools we plan to offer.”
Here’s an example of what the app looks like on a Facebook Page:
Click on the tab and you see promotional copy, links to other online marketing (blog), maps, market data and so on:
In email I asked Chang if he knew how many local realtors had Facebook Pages. He estimated that in the US there are about 300,000 (or somewhat more) agents on Facebook. The National Assn of Realtors claims about 1.3 million members, not all of whom are active. Chang guessed that the agents on Facebook represent perhaps 40% to 50% of the active agents in the US.
Realtors have always been among the most interesting of SMBs. Many of them are aggressive, early adopters of new marketing methods.
Now, imagine a fairly complete digital marketing program for realtors that doesn’t involve a penny of media spending:
This represents considerable effort, especially the blogging if it’s done regularly. And while there is money changing hands to create and launch all these tools, my point is there’s no “advertising” involved.
Agents still will undoubtedly do some traditional media ads, but in terms of online this could all be done — and be quite effective — without spending a dime on advertising. Most SMBs don’t realize how much can now be done online for free. If they did it would be potentially very scary for publishers and media companies.
Ever since the discussion during “Ask the Search Engines” this week at SMX West there’s been an ongoing debate about solicited or incentivized reviews. There are two sides here: the SMB who wants customers to post favorable reviews (Tweets and updates) and the publisher that is seeking content for its site.
A couple of people pointed out to me the new Yellowbook contest that seeks to boost reviews:
The “big prize” approach is probably more effective than the per-review approach that was taken by Tribe.net and Insiderpages, among others (“five reviews for a Starbucks coffee card”). Superpages has done this type of thing, as have many others. It’s common on the publisher side.
Someone pointed out that, given this contest, Yellowbook couldn’t turn around and do what Yelp is doing: frowning on incentivized reviews. Here’s the official Yelp discussion of this issue:
While we understand that there is a temptation to solicit reviews from your customers, it is not something we encourage. The most successful businesses on Yelp have had their reviews come organically. This is for a couple of reasons:
- Potential customers can sometimes have an adverse reaction to a business that looks like it has solicited reviews.
- Quite often those solicited reviews will be screened out (see above) based on the activity level of those users within the Yelp community.
And about screening of reviews:
Some reviewers are more credible than others. For the most part, users decide for themselves which reviewers they trust the most. We remove some of the guesswork by screening out reviews that are written by less established users. The process is entirely automated to avoid human bias, and it affects both positive and negative reviews. Since users can become more or less established over time, their reviews can disappear and reappear over time, as well. Either way, we never actually delete these reviews, and they can still be found on the reviewer’s personal profile page.
This system proves frustrating for some because it sometimes affects perfectly legitimate reviews. The flip side is that it helps protect against fake reviews from malicious competitors and disgruntled former employees. . . .
Local businesses will undoubtedly do the sort of thing that Yellowbook is doing on a smaller scale: “post a review on Yelp or Google or become a fan on Facebook for a chance to win a free haircut.” This is exactly what Yelp wants to avoid — and if the reviews come from people who don’t normally post reviews — they’ll be removed or suppressed in all likelihood.
But you can certainly understanding the thinking.
Here are stories from the past two days at Internet2Go:
There are essentially two angles in coupons: aggregator or sales channel. Either you’re bringing lots of deals and offers to consumers or you’re a direct sales channel acquiring offers from merchants. It’s going to be very rare for any single company to occupy both positions.
I previously wrote about Yipit, which is aggregating deals from the various group buying vendors (e.g., Groupon). Now 8Coupons, which began in New York selling mobile coupons to SMBs is making a play to become an aggregator itself but with a bit of an angle . . .
Here’s the PR pitch for the site now:
With so many coupon, deal and discount web sites out there, consumers are on the verge of “Coupon Fatigue.” There are so many sources for discounts and money saving information that it is hard to digest and utilize them all.
That’s where http://www.8coupons.com/ comes into play with a One-Stop Shop for all the best deals near you. 8coupons aggregates coupons, sales, deal tips, and other discount related information from a variety of sources that include Valpak,MoneyMailer, Local Bloggers, “Groupon-like” Deal of the Day websites, Merchants themselves, Users themselves, etc., and displays them on 8coupons.com‘s sexy location-based (neighborhood level) map.
8coupons’ geo-locator and mapping technology finds where you are and automatically populates 8coupons’ “Money Map” with the best, most popular, deals near you. The8coupons deals algorithm figures out the “Top 8″ deals near you based on various metrics such as clicks, impressions, prints, texts, etc.
There might be a rare case where a non-aggregator can develop “brand” status. Groupon, because it’s the most well known of the lot, has a shot at this.
But who do you think will win or what cluster of sites do you think will win in the now very crowded segment of largely anonymous companies offering deals to consumers and soliciting local business offers?
I have two unlimited service plans from Sprint for myself and my wife. We pay in excess of $200 per month and we’ve been Sprint customers for a decade. We are the high-value post-paid customers that Sprint has been bleeding for the past couple of years.
I opted to stay with Sprint and bought the crap Palm Pre — sell your Palm shares now — instead of churning to AT&T to get the iPhone. Recently I discovered that T-Mobile offers the same service plan I currently have for two lines at $50 less per month.
It’s not the iPhone but I would be happy with the Nexus One, which is compatible with T-Mobile’s network. I’ve now talked to several Sprint reps and they’ve got nothing to offer me to retain my business. If T-Mobile pushed this plan aggressively on TV it would capture some new business. Indeed, it’s likely to capture mine.
Observing Sprint’s behavior is interesting from a customer service and retention standpoint. We’ll see how hard they work to keep me.
Sprint CEO Dan Hesse should be matching T-Mobile’s pricing because Sprint is a “value carrier” and not really competing with AT&T or Verizon, which are positioned as the premium US carriers. Sprint hopes that WiMax will enable the company to boast about speed and compete with its network. However the advantage if it materializes will likely be short-lived.
The monthly travel report from Hitwise shows that MapQuest has settled in at number two, probably never to return to number one. However it remains a top brand and query, as the second chart indicates below:
This discrepancy between MapQuest’s number two position and the fact that its brand is still very heavily searched for is used by Foundem (one of complainants against Google) to make a case for “search neutrality” (oxymoron) with the FCC.