Reputation and Presence Management: Joining the Conversation

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Reputation and Presence ManagementJoining the
Conversation
A BIA/Kelsey Webinar Wednesday, October 14th
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Interactive Local Media Conference

• Dec. 9-11, 2009 at the Hyatt Regency Century
  Plaza, Los Angeles, California
• ILM is where the local online media community
  gathers to learn what's working, make connections
  and conduct business.
• According to the latest wave of BIA/Kelseys
  Local Commerce Monitor Study, 77 percent of small
  and medium-sized businesses now include
  digital/online advertising in their marketing
  mix. At ILM09, we will focus on how local media
  companies are helping SMB advertisers manage
  their online reputations and maximize their
  online investment.
• Attendees are a global audience of executives
  responsible for corporate management, marketing,
  product development, business development, and
  sales.

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Todays Webinar - The Communications Revolution
E-Mail, Reputation and Presence Management
Today, we are going to look at a new kind of
local product A White Space What youll see
today are foundation products. What well explore
is how these beginning building blocks will
evolve into a much larger and integrated suite of
products that will solve for many of todays
small business market challenges outside of the
SMBs control. Today, well explore what this
market is, its genesis and evolution and,
finally, where it will go and why.   PanelistsMa
tt Booth, Senior VP and Program Director,
Interactive Local Media, BIA/KelseyAlex
Hawkinson, Founder, SMBLiveMatthew Berk,
Executive VP, Product Engineering, Marchex
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Tomorrows Webinar - The Business View of E-Mail,
Reputation and Presence Management
We will review the feedback obtained from
BIA/Kelsey Interviews with SMBs currently using
alpha and beta releases of Marchexs and
SMBLives platforms. Our results were neither
vetted nor pre-approved. PanelistsMatt Booth,
Senior VP and Program Director, Interactive Local
Media, BIA/KelseySteve Marshall, Director of
Research and Consulting, BIA/KelseyOct. 15,
20092 p.m. - 3 p.m. EDT
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The BIA/Kelsey ThesisWhy You Should Care
Within three to four years, the local market
will coalesce around a platform that facilitates
communication between businesses and consumers.
It will first be built on aggregating consumer
feedback and managing reputation. Later, this
platform will allow businesses to interact and
respond to consumers. The company that
controls this platform will create lock-in across
the local market.
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Web. 3.0 The Communication Platform The
Product Evolution

• V1 The Base Product
• Built on Aggregated Consumer Reviews
• Allows SMBs to Monitor Noise, Opinion while
  Monitoring Feedback
• What are people saying about my business
• V2 Push-Pull Messaging (Two Way Messaging
  Begins)
• Listing Submission, Correction and Enhancement
• Placement Engine (Real-Time) Facebook, Twitter
• Email and Push Offers
• Im slow or need to clear inventory
• V3 Lock-in Winner Take All
• Merchants Responding to Consumer Requests,
  Gaining Influence and Following
• Consumers Gravitate towards the Product Instance
  where the most Merchants are Interactive and
  Responding
• I had a bad experience at, with my favorite
  store, brand. Wrote a review, the owner read
  my review and fixed the problem.

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MARCO Drivers

• Deleverage Means Behaviors Are Changing
• Shift to Interactive Ad Spend will Accelerate
• Search will Continue to Grow in Share
• A Partial Effect of Searchs Power and Dominance
  Means that Digital Relationship Building (like
  Email) is Critical to Success

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The Credit Crisis Is the Inflection Point
Deleveraging Is Gathering Steam

• What we have seen so far ? mortgage defaults,
  falling house prices, bank failures, and lower
  economic activity ? is only the initial stage of
  a longer deleveraging cycle
• After decades of growth, household debt in the US
  has only recently started to contract

Net Borrowings by US Households
Source Greed Fear, 18 December 2008. -
http//www.federalreserve.gov/releases/z1/Current/
z1.pdf
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U.S. Local Media and Ad Spend 5-Year Forecast
Overall CAGR -1.4 (2008-2013)
US Billions
Source BIA/Kelsey (2009)
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US 2008 2013 Interactive Ad Market, Growing
from 29.18B to 58.57B
Source Proprietary research by BIA/Kelsey,
mid-2007. Sample 1,200 SMB advertisers in 4
major US MSAs). Methodology Telephone survey.
Cosponsor ConStat.
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The Communication Platforms Product Evolution
The 7 Reasons Why

• People rely on opinions of friends, family and
  peers to make decisions

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Both Off-line and On-line, Peoples Communication
and Interaction Defines the Services Used and The
Products Purchased
Local searchers are more likely than other
groups to utilize local newspapers and magazines
for their research.IYP users go to a printed
directory more than any other printed offline
resource for their secondary research.
Additional Offline Research
Additional Online Research
Survey question What additional offline
resources did you use for research?Survey
question What additional online resources did
you use for research?Option added in 2008
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The Communication Platforms Product Evolution
The 7 Reasons Why

• People rely on opinions of friends, family and
  peers to make decisions
• Time spent on communication activities dominates
  time spent on-line a mirror of off-line habits

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Mirroring off-line behavior, Internet Users Spend
1/3 of time Online Time Communicating

• People spent 21 hours per person and 27 hours
  per person in Singapore and France, in February
  2009, respectively
• Communication platforms dominate on-line (IM,
  Social Networks and Email)

Source comScore (2009)
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The Communication Platforms Product Evolution
The 7 Reasons Why

• People rely on opinions of friends, family and
  peers to make decisions
• Time spent on communication activities dominates
  time spent On-line a mirror of off-line habits
• Search continues to grow and consolidation leads
  to aggregation few people go to page two

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Searcher and Search Intensity Growth in the U.S

• Search growth was partially driven by intensity
  growth, at nearly 109 searches per searcher and
  up 25 versus June 2008.
• Search growth was also driven by an increasing
  searcher base, reaching 202MM searchers in June
  2009.

Unique Searchers vs. Search Intensity
Change vs. Jun-08
Searches per Searcher
Unique Searchers (MM)
25
5

• Source comScore qSearch 2.0 Total US Internet
  Searchers

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Consider The Various Incentives of a Hotel
Search(Example New York City Hotel Search)
There were 506,000,000 hotel searches across
Googles Network in September Top 3 position
clicks costs 3.16 (1.6B)
The number 1 Organic Position can receive
up-wards of 40 of traffic
Q If you owned a hotel website, what would you
do?
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The Communication Platforms Product Evolution
The 7 Reasons Why

• People rely on opinions of friends, family and
  peers to make decisions
• Time spent on communication activities dominates
  time spent On-line a mirror of off-line habits
• Search continues to grow and consolidation leads
  to aggregation few people go to page two
• Editorial resources are too expensive to be fully
  supported by advertising Therefore aggregation
  of and consumer reviews dominate local content

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Just Like the Earlier Hotel Example, It Pays to
Be First. But, Editors Are Expensive and Consumer
Reviews are Cheap and Plentiful.
A consumer searches a proper business name. The
example here is Mountain View Sushi, Sierra
Madre, CA and the entire search return (except
the map) are companies aggregate content about
that business. Like 1990 era Travel Agents most
businesses are getting out-represented
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The Communication Platforms Product Evolution
The 7 Reasons Why

• People rely on opinions of friends, family and
  peers to make decisions
• Time spent on communication activities dominates
  time spent On-line a mirror of off-line habits
• Search continues to grow and consolidation leads
  to aggregation since page one is very valuable
  few people go to page two
• Editorial resources are too expensive to be fully
  supported by advertising Therefore aggregation
  of and consumer reviews dominate local content
• Businesses feel hijacked Who are all these
  people writing about my business?

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Fair or Not, Businesses Feel Misrepresented.
(Comments to a NYT Article)
  For a small business, giving money to Jeremy
Stoppelman and Yelp is like handing a butcher
knife to a serial killer. dveron Yelp is a
haven for trolls, and now hardworking business
owners can take time out of their busy day to
argue with them. Screw Yelp. Well be celebrating
when they finally go down the toilet.
Luisa It took yelp six years to even consider
giving small business owners a voice on their
website, and only after a flurry of negative
media attention threatened the viability of its
own business. blogorama
Source http//bits.blogs.nytimes.com/2009/04/09/
yelp-gives-small-businesses-a-louder-voice/
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The Communication Platforms Product Evolution
The 7 Reasons Why

• People rely on opinions of friends, family and
  peers to make decisions
• Time spent on communication activities dominates
  time spent On-line a mirror of off-line habits
• Search continues to grow and consolidation leads
  to aggregation few people go to page two
• Editorial resources are too expensive to be fully
  supported by advertising Therefore aggregation
  of and consumer reviews dominate local content
• Businesses feel hijacked Who are all these
  people writing about my business?
• Small Business Owners Measuring Instant
  Gratification (not ROI)

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BIA/Kelsey LCM Survey SMBs Opinion of the Best
to Worst ROI Measuring an Important Perception
of Value Instant Gratification
Internet Media to Benefit from Perception
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LCM, Ratings are by users of that media type.
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Financial Services Media Spend Digital Media
An analysis of spending by online and new media
underscores the strong position of e-mail
marketing. Although spending on pay-per-click is
still very low (2.3), it is more than double the
spend by Professional Services SMBs on this
medium (1.2).
Financial Services Spending on Digital Media
of Budget Spent on Media Type
Spent (Avg. Annual)
Source BIA/Kelsey Local Commerce Monitor Wave
XII August 2008 (Financial Services sample 310.
Core LCM XII sample 299). Methodology Online.
Cosponsor ConStat.
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The Communication Platforms Product Evolution
The 7 Reasons Why

• People rely on opinions of friends, family and
  peers to make decisions
• Time spent on communication activities dominates
  time spent On-line a mirror of off-line habits
• Search continues to grow and consolidation leads
  to aggregation few people go to page two
• Editorial resources are too expensive to be fully
  supported by advertising Therefore aggregation
  of and consumer reviews dominate local content
• Businesses feel hijacked Who are all these
  people writing about my business?
• Small Business Owners Measuring Instant
  Gratification (not ROI)
• After email, Immediacy and Instantaneous
  response is pushing businesses to use
  communication platforms

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Social Networks Are About Immediacy Think
Facebooks News Feed
SMBs that Intend to Use a Page On a Social Site
in Next 12 Months
Overall average _at_ 32
Note Scale begins at 10.
Source BIA/Kelsey Local Commerce Monitor. Wave
XIII August 2009 (Sample 302). Methodology
Online. Co-sponsor ConStat.
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Twitters Core Strength is Also Immediacy
Use of Print Yellow Pages vs. Twitter (by Age of
Business)
Twitter Overall 9
Source BIA/Kelsey Local Commerce Monitor. Wave
XI July 2007 (Sample 304). Wave XII August 2008.
(Sample 299). Wave XIII August 2009 (Sample
302). Methodology Online. Co-sponsor ConStat.
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Recap Web. 3.0 The Communication Platform
The Product Evolution

• V1 The Base Product
• Built on Aggregated Consumer Reviews
• Allows SMBs to Monitor Noise, Opinion while
  Monitoring Feedback
• What are people saying about my business
• V2 Push-Pull Messaging (Two Way Messaging
  Begins)
• Listing Submission, Correction and Enhancement
• Placement Engine (Real-Time) Facebook, Twitter
• Email and Push Offers
• Im slow or need to clear inventory
• V3 Lock-in Winner Take All
• Merchants Responding to Consumer Requests,
  Gaining Influence and Following
• Consumers Gravitate towards the Product Instance
  where the most Merchants are Interactive and
  Responding
• I had a bad experience at, with my favorite
  store, brand. Wrote a review, the owner read
  my review and fixed the problem.

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(No Transcript)
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ABOUT MARCHEX
Marchex is a performance advertising company that
leverages technology to help advertisers grow
their business with local customers
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The Problem Reputation Management Solves

• Local Search is a solved problem for
  consumersbut not small businesses (SMBs)
• SMBs are time poor, lack marketing expertise
• SMB digital footprints are fragmented, disparate
  and growing without their knowledge
• Consumer reviews can dramatically affect their
  business
• Reputation Management
• Gives SMBs visibility into their online presence
  to inform marketing, operations
• Saves SMBs time (money) by staying on top of
  their profiles and footprint
• Identifies areas to take action

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How We Got Into Reputation Management

• Marchex has been investing in aggregating and
  data mining local content since 2003 through its
  local search engine Open List
• Local search is about helping consumers make
  (better) decisions about where to spend locally
• The data is filthy and a huge problem
• We realized that local search for consumers is a
  solved problem.
• SMBs we spoke to were at an information
  disadvantage online.
• Customer dialogue is the marketing.
• Leverage the same data set, but on behalf of SMBs

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Product Overview

• An easy to use service built on robust local
  search data, content sources and useful features.
  
• Data Set
• 20 data/listing relationships
• 8,000 content sources
• A quarter billion pieces of local meta
  datarefreshed and growing every night
• Customer Profile
• For the most sophisticated online SMB to the
  starter
• Product Features
• Review summarization and filtering
• Key phrase extraction
• Mentions from across the Web
• Listing footprint inaccuracies and
  opportunities
• Comparisons with competitors
• Email alerts
• Social media sharing of content
• Trending and comparison charting

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Overview Reputation At-A-Glance
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Reviews Summarization and Filtering
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Mentions From Across The Web
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Listings Inaccuracies and Opportunities
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Comparisons with Competitors
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How This Differs Local Listings vs. Keyword
Alerts

• Keyword alerts are a great place to start but...
• An online profile allows a local business owner
  more control
• - tie information back to a physical listing
• - meaningful comparisons of local meta data
• - side by side comparisons of businesses by
  specific geography

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An Information Advantage for SMBs

• Clear benefits identified by our Alpha testers
  included
• Actionable data to improve their business
• Non-reviewed businesses active in seeking
  ratings
• Inaccurate listings identified and corrected
• Competitive reviews undertaken
• Store by store comparisons helping drive
  consistency

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SMBs and Partners Join the beta test program
http//www.marchex.com/repmanagement
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Amplify Your Online Voice
CloudProfile Overview October 14, 2009
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Company Background

• Founded in 2005, SMBLive is a software company
  that helps small businesses to get discovered
  online, engage their customers, and grow revenues
• 2006-2008 developed and refined first generation
  product in joint development with British Telecom
  (BT) under the brand www.BTTradespace.com
• Tradespace has reached gt375K small business
  customers in the UK since it launched in April
  2007
• Based on the learning from this effort, SMBLive
  has created its next-generation platform, called
  CloudProfile
• CloudProfile is available today, and is built for
  distribution through partners

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The Market

• Historically, businesses looked to their phone
  company to make the phone ring via a Yellow
  Pages Advertisement
• Increasingly, the ringing phone today is a
  web-based or social media interaction Web Chat,
  Contact Form, Twitter Message, Facebook Fan Post
• Just as Google disrupted the success of the
  Yellow Pages business, there is a coming wave of
  disruption around social media and the
  conversational, real-time web
• For organizations that are looking to expand
  their relationship with SMBs, that opportunity is
  to help small businesses get online, get found,
  and engage customers

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Consumers Trust Each Other More Than They Trust
Advertising

• 78 of consumers trust peer recommendations
• Only 14 trust advertisements
• Social networks and user reviews are only a click
  away
• Natural and social discovery rule, and customer
  service is the new marketing

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Conclusions

• SMBs need to be discovered to survive, they pay a
  lot to be discovered, and they HAVE to learn to
  be discovered online
• SMBs need the right solution that makes it easy
  to be interactive and socially discoverable
  online.
• By providing small businesses with simple tools
  to solve this problem and embrace the web, we can
  have a very big impact.

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What is CloudProfile?A conversational, social
media optimized Web site for small businesses,
that includes
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CloudProfile helps SMBs
Get Online
Talk Be Found
Listen Respond
Make Better Use of Time
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Get Online
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Talk Be Found
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Listen Respond
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Make Better Use of Time
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Experience In Market

• Freemium model works free basic site, 1-2
  premium tiers, DIFM
• Broad uptake that mirrors SMB market in both size
  and verticals
• 60 from current base
• 25 customers who had churned coming back
• 15 from outside current base
• Success across all acquisition channels
• 60 telesales and retail
• 20 online
• 20 word of mouth
• Up to 50 decrease in churn on core services
• Cross-selling machine
• 4x take rate of complimentary services (e.g.
  domain registration)
• gt10 take rate of DIFM services

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Next Steps

• Learn more about CloudProfile, our partner
  program, and create your own profile at
• http//www.cloudprofile.com
• http//learn.cloudprofile.com
• http//facebook.com/cloudprofile
• http//twitter.com/cloudprofile
• Connect with the Team at
• http//www.cloudprofile.com/team
• http//hawkinson.cloudprofile.com
• Schedule time for a drill-down to review partner
  model and evaluate our quick-start program details

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Interactive Local Media Conference
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Plaza, Los Angeles, California Webinar attendees
receive 200 off ILM09 registration. Register
online at www.kelseygroup.com/ilm2009 and use one
of the following promo codes Public ILM09WEBINA
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Thank you for attending todays event.Following
todays event you will receive an email with a
link to a landing page so you may download the
slides, view the video and listen to a MP3, as
well as access other resources.
We will now take questions. All unanswered
questions will receive a response in the coming
days.
Important Links ILM Conference
www.kelseygroup.com/ilm2009 ILM Advisory
Servicehttp//www.kelseygroup.com/services/inter
active-local-media.asp Marchex
http//www.marchex.com CloudProfile
http//www.cloudprofile.com