Local Overview

1
Local Overview
Greg Sterling Sterling Market Intelligence/Opus
Research
2
Local Ad Market North of 90B
Source IAB, various media sources
3
Plumbers Pizza not the Whole Story
Local search has historically been associated
with SMB advertising (e.g., plumbers and pizza)
4
Politics and Brands Are Local

• Brands may exist on the regional or national
  level but buying occurs almost entirely offline,
  in stores, dealers or outlets
• Internet and search are critical tools used by
  consumers
• Brands and national advertisers not leveraging
  local online ads are missing a key piece of the
  online puzzle the chance to lead a buyer to a
  store or POS

5
Majority of Transactions Offline

• More and more people research online but still
  buy in stores
• E-commerce lt4 of US retail

Source US Census Bureau, Q3 2008
6
Consumer Behavior the Real Story

• Brands, nationals many not clearly see importance
  of local because of SMB narrative
• Focus should be on how consumers use Internet to
  before making buying decisions
• Dominant consumer paradigm is ROBO research
  online, buy offline

7
Internet the Top Research Tool

• If you were only able to use one source of
  information to support your next consumer
  electronics purchase, which would you choose?
• Internet 58
• Visit to local stores 25
• Reviews in newspapers/magazines 8
• Friends and family 8
• Other 1

Source Nielsen, May 2008
8
Online-Offline Shopping Growing
Source Jupiter Research, ShopLocal (2008)
9
Marketers GeoTargeting Delivers Best ROI
Source MarketingSherpa survey, 2008
10
Local National Advertiser Challenges
Multiple mentions permitted
Base National Advertisers using geotargeting
(n132)
11
SMBs Main Reason for No Online Mtkg
Indicate the main reason your business does no
online marketing
Source Opus Research, AllBusiness.com August,
2008, n615 US small businesses