top 5 trends in local advertising
TRANSCRIPT
Top 5 Trends in Local AdvertisingMarch 30th, 2016
David Shaner, CEOOffline Media, Inc.
The mobile phone has become a remote control for life.
The average consumer checks their phone ~150x/day.(1)
~7 years after the first iPhone, smartphones pass TVs as the most viewed devices in America.(2) A species-wide attention shift.
MOBILE REACHED AN INFLECTION POINT IN 2014...
This year, mobile ad spending will pass desktop.(3) Projections as recent as 2013 predicted this wouldn’t happen until 2019.(4)
...AND AD SPEND IS SPRINTING TO CATCH UP
Mobile has doubled aggressive predictions. Trends that should take 10 years will take 5.
8 of the last 10 local businesses I’ve spoken to are “cutting back significantly” on traditional media & shifting to digital/mobile.
Millennials read, they just read differently.
Apparently, so does Gen X.
Millennials rapidly abandoning print: 50+% decline over ~10 yrs. Surprisingly, this 50+% decline extends up to 45-54 bracket.(5)
THE SHIFT AWAY FROM PRINT HAS NOT SLOWED...
Spending in print is out of balance with consumer attention. Mobile ad growth will be fueled by the shift away from print.(6)
...AND DOLLARS ARE SHIFTING STRAIGHT TO MOBILE
~25B+ Opportunity
in USA
The attention shift to digital came largely at the expense of print.
Over the next 5 years, look for advertisers to pull roughly 15 billion out of print and redeploy straight to mobile.
“In the digital age, Internet listings and directories initially gave way to general-purpose search engines such as Google and Bing. But with increasing smartphone adoption, local search is changing once again.”
—IDC “Unleashing Local Search” (7)
+240%Reported year-over-year growth rate in Google searches with the term “near me” in the query.(8)
CONSUMERS + SMARTPHONES + LOCAL DATA = HUGE AD OPPORTUNITY
64% Start local purchasing journey elsewhere
~2/3 of local purchasing decisions don’t begin w/ a search engine. Non-search leaders include topic-specific sites/apps.(7)
MULTIPLE STARTING POINTS = DISTRIBUTED AD STRATEGY/REVENUE OPP.
36% Start local purchasing journey with search engine
- 15% topic-specific site/app- 7% customer reviews- 7% online directories...etc.
-e.g. Google, Yahoo, Bing
Consumers increasingly turn to their phones to make local purchasing decisions...
...but search engines are far from the only base that local advertisers need to cover.
Topic-specific websites/apps and online directories together drive nearly as much local traffic as search engines. Advertisers must cover all the relevant bases.
“For [millennials], happiness isn’t as focused on possessions or career status. Living a meaningful, happy life is about creating, sharing and capturing memories earned through experiences that span the spectrum of life’s opportunities.”
—Harris: Millennials Fueling the Experience Economy(10)
Millennials have the wheel of the modern economy, and they are spending with brands that create memorable experiences.
SOCIAL WEB + FOMO = INCREASED DEMAND FOR EXPERIENCES
Spending on experiences & events increased 70%
since 1987.(9)
Millennial spending = 1.3 trillion/yr = #1 driver of
modern economy.(9)
8 in 10 millennials would rather spend $$ on an
experience than a thing.(9)
The Experience Economy is the lens that will help local advertisers and marketers understand the millennial consumer.
Local (and national) advertisers have a window of opportunity to create meaningful, unique experiences that attract the attention, loyalty and future spending of millennials.
“The promise of measuring [in-store] attribution across any advertising medium is within reach...the Bluetooth beacon becomes the next cookie, or more appropriately, the real-life equivalent of a digital tracking pixel.”
—Reveal Mobile(10)
Active iBeacons in the US, 2013
0Active iBeacons
in the US, 2018(11)
4.5M
>50% of major US retailers using in-store iBeacons. Why? Online to offline (O2O) tracking = holy grail of local advertising.
INTERNET OF THINGS WILL (EVENTUALLY) ENABLE ATTRIBUTION
As local advertisers begin tying ad performance to in-store visits, local ad spending will consolidate around channels that can deliver results and loyalty. The effects on under-performing channels will be Darwinian.
We are at the dawn of a new era in local advertising—an era dominated by mobile.
As consumers continue to move away from print, advertisers must quickly adapt or be dominated by faster-moving, digital-savvy competitors.
Consumers are starting their local purchasing decisions on their phones through search, topic-specific sites/apps and online directories.
Savvy local advertisers have an unprecedented opportunity to reach consumers at the moment of decision to drive conversions and track ROI.
Thank you for your time.Please email me directly at [email protected] with any questions or feedback.
David Shaner, CEOOffline Media, Inc.
Sources & additional reading(1) http://www.kpcb.com/blog/2013-internet-trends(2) http://flurrymobile.tumblr.com/post/115194107130/mobile-to-television-we-interrupt-this-
broadcast#.VHUO_lfF8hw(3) http://www.forbes.com/sites/roberthof/2015/03/25/mobile-ad-revenues-will-blow-past-
desktop-ad-spend-by-early-next-year/#3fda557c5f12(4) http://www.emarketer.com/Article/Will-Desktop-Ad-Spending-Peak/1009959(5) http://www.journalism.org/media-indicators/newspaper-readership-by-age/ (6) http://www.kpcb.com/blog/2015-internet-trends(7) http://www.iab.com/wp-content/uploads/2015/12/IDC.YP-Unleashing-Local-Search-Final-
12.18.15.pdf(8) https://www.thinkwithgoogle.com/articles/5-ways-consumers-connect-stores-mobile-shopping.
html(9) https://eventbrite-s3.s3.amazonaws.com/marketing/Millennials_Research/Gen_PR_Final.pdf
(10) http://www.revealmobile.com/blog/2016/2/29/beacons-bring-attribution-within-reach(11) http://www.businessinsider.com/beacons-are-the-most-important-new-retail-tech-2014-7