TITLE of PRESENTATION

September 25, 2014

Ten Critical Trends in

Local Media & Marketing

Overview

1. Mobile device usage and media time

2. Mobile payments and digital wallets

3. Connecting the digital and physical worlds

4. Location goes indoors

5. Location is the new cookie (for mobile targeting)

6. Social media impact on consumer purchase behavior

7. World of wearables

8. Personal assistant: mobile successor to search

9. Internet of things

10. Operational and transactional services for SMBs

11. Rise of resource sharing

Smartphones:

• 72% penetration in US

• 90% penetration by end of

2016 projected

• Larger-screen phones gaining

momentum

• 35% of aggregate web traffic

in US (mobile + tablet)

Source: comScore, Nielsen, StatCounter 2014

Mobile Device Usage

60%*40%

• *Apps claim majority of digital media time: 52%

• If ad revenue were more closely tied to time spent, 2014 digital revs would

be: mobile $29 billion; PC: $20 billion

• Time with apps, app sessions growing but not number of apps used

(roughly 27 per month on average – but most spend time with far fewer)

Source: comScore, Nielsen, Localytics, September 2014

Time Spent: Mobile vs. PC

Source: Company reports

Mobile Usage Bigger in Some Categories

• Pinterest: 75% of usage coming from mobile

• Retale: 80% of usage mobile

• Yelp: 59% of searches from mobile devices

• YP: 50% of search on YP’s network from mobile

• Twitter: 81% of revenue from mobile

Mobile Payments & Digital Wallets

Source: Changing Landscape of Mobile Payments- Apps, Wallets & Wearables, Thrive Analytics 2014

Current Situation:

Very Competitive Landscape

Source: Changing Landscape of Mobile Payments- Apps, Wallets & Wearables, Thrive Analytics 2014

Enter

Small Transactions, Significant Growth

• Starbucks- Mobile payments account for 15% of Starbucks US revenue. (Growing at 20% per quarter)

• PayPal- 15% of transaction volume ($27 Billion) was mobile last year. (3 years ago it was $600 Million)

• Top categories purchased include coffee, QSR items, groceries, tickets, etc.

Online-to-offline Sales/Visibility/Tracking

$305

$1,758

$2,637

2014

Pure Online Online Influenced Pure Offline

~34% ($593 Billion) Influenced by Mobile

Offline to Online Retail Sales (in Billions)

Source: eMarketer 2014

Greatest Challenge for Marketers

• 63% Cross Channel

Measurement & Attribution

Efforts to Connect the Digital & Physical World

• Datalogix has partnered with industry heavyweights like Facebook and Twitter to provide a link between digital ads and in-store sales.

• Placed Attribution measures the impact that mobile advertising has on in-store visits and traffic patterns.

• Owned by Google, Adometry specializes in being able to credit online ads with impacting consumers to take specific actions, such as purchasing products in-store.

• Acquired by Acxiom in May, LiveRamp is a data on-boarder that provides marketers with ways to unify their customer databases across disconnected digital marketing applications.

Location Goes Indoors

Macy’s decided to roll out iBeacons

in all its 4,000 locations.

• Retail stores, malls

• Entertainment venues, casinos, amusement parks

• Airports

• Stadiums and arenas

• College campuses

• Hotels

• Hospitals

• Museums

• Others

Varied set of use cases, categories and industries that can benefit

from indoor location:

Source: Macy’s

Location Is the New Cookie

Toyota campaign: Ads only shown to qualified audiences

within a certain proximity of local Toyota dealers. Ads feature

different incentives or interest rates.

Primary uses of location are to determine which interest rate to

serve and for geofencing (based on prior qualification)

Ad creative (interest rates) dynamically served

Landing pages tie in to local dealers, inventory

Location increasingly used to

identify audiences and for

retargeting or behavioral

targeting

Mostly the background (display)

Source: Toyotal, Opera MediaWorks

The World of Wearables

• $6 Billion 2014- $30 Billion by 2018

• Reducing friction points

• Changing business models

• New ways to gather information/search

• Privacy issues

• Apple Watch?

• Paying via wearable device?

Social Media Impact on Purchases

Consumers often say social media has limited impact on buying decisions

How much does social media typically influence your purchase decisions?

Source: Gallup 2013, n=1,000

Social Media Impact on Purchases

Yet other data

argue social media

has a meaningful

impact

Source: Vision Critical 2013 review of internal/client data + 6,000 consumer “interviews,” IBM survey 2014

2013 study from Vision Critical:

• 43% of social media users have purchased a product after sharing or favoriting it on

Pinterest, Facebook or Twitter

• Social drives roughly equal amounts of online and in-store sales

Facebook and Local Reviews

Source: Thrive Analytics (2014)

Facebook captures more local business reviews than Yelp, Google and other sites

Personal Assistant: Successor to Search

Key Trends:

• 60% of smartphone owners have used a digital assistant i.e.

Siri, Google Now or Cortana to search for Local Information.

• 63% of users use it at least weekly with over 50% being “on-

the-go”

• Top uses include:

– 66% Searching for up general information

– 65% Looking for directions

– 44% Finding weather information

– 31% Reminders/schedules and notifications

– 20% Finding deals for local products & services

Source: 2014 Digital Personal Assistant Report, Thrive Analytics 2014

The Internet of Things

Source: Jabil 2014

Source: Jabil 2014

• $1.9 Trillion in 2013 to $7.1 Trillion in 2020

• How will a smart home, car, etc. impact your clients?

The Internet of Things

Operational/Transactional Services for SMBs

Range of companies offering “operational services” to SMBs:

• Scheduling/appointments

• Payments

• Invoicing/work orders

• CRM-like services

Examples:

• Open Table

• Swipely

• HomeAdvisor Mhelpdesk

• Yelp platform

• Square appointments

• Groupon scheduler

• Pingup

• Reach Commerce/Club

Local

Resource Sharing/Crowdsourcing

Marketplaces that use excess “inventory” or capacity and

can be “disruptive.”

A few high-profile successes:

• AirBnB

• Uber, etc.

• Kickstarter (a cousin)

Numerous failures in the segment

But the model will continue to inspire startups