Geolocation, Local and Mobile:The #1 trend in 2010
Chris TollesCEOTopix
@tolles
Agenda
• Introductions
• What’s in it for me?
• Industry Overview
• Localized Online Advertising
• Takeaways
What is Topix?
• Topix is a platform for participation, built on top of zip-code-level local news aggregation
• Designed for real Americans
• Who are looking for honest, local talk online
Topix is the best place online for real, local conversations
Reach untapped, local audiences – nationwide on a single platform
Topix is local
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Internal Site Stats• 14.8 million unique visitors• 123 million pageviews• 125,000 comments/day
Source: Google Analytics, Jan – June ‘10
Third Party Stats• 7.877 million unique visitors• 52% female, 48% male• 35% HHI $75,000+• 69% are ages 18 – 49
Source: comScore, Media Metrix, June ‘10
Highlights• Top 10 newspaper web site• Local community, nationwide• Complementary audience to
traditional local media
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What’s in it for me?
The fastest-growing segments of online advertising are the local sector, anything targeted, and everything involving social media.
--Borrell Associates, Aug. 2010
Indeed, a steady shift toward digital media continues…. Spending on online/interactive media is projected to grow [a] CAGR of 19.3 percent.
--BIA/Kelsey Group, Feb. 2010
BIA/Kelsey Group Local Ad Forecast2009 - 2014
$115.0
$15.2 $36.7
$108.2
$-
$40.0
$80.0
$120.0
$160.0
All Local Media Online Local Media
Billi
ons
2009
2014
Online drives offline results
* Forrester, December 2009**Kelsey Group, March 2010
Online-influenced offline sales will reach $1.4 trillion by 2014*
Nearly all consumers (97 percent) now use online media
when researching products or services in their local area**
Audiences are Tuning in Differently
Mobile Internet Ramping Faster than Desktop Internet Did
Source: Morgan Stanley
Mobile Will Be Bigger Than Desktop Internet in 5 Years
Source: Morgan Stanley
40% of US Adults now surf the web on their smartphone**Source: Pew Research Center, July 2010
Topix Mobile Pageviews Confirm This
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Who Should Care Today?
• If you want to understand the latest trends in local, geo-location and mobile marketing
• If you need to drive offline purchases & behavior
• If you have regionally differentiated products
• If your message needs to be localized
Geolocation Applications
• $100M in funding at a $475M valuation (Jan 2010)• 38M unique users; 12M user generated reviews• Added mobile “check in” feature (Jan 2010)• Added “Daily Deals” feature (Aug 2010)
• $8.4M in funding (Dec 2009)• 350K users• Named one of Time Magazines “50 Best Websites”
(August 2010)
• $20M in funding at a $95M valuation (June 2010)• 3M users, 1M badges, 100M “check ins”• 15K venues offering “specials
According to Skyhook Wireless, there are more than 6,400 location-aware iphone apps
Foursquare is Popularizing Geolocation
Lots of Local Players
• Partnerships with Travel Channel and H&M (virtual goods)
• 3M users (up from 500k in Jan, 130k new users a week,)
• Averages 70 minutes of playtime per user per day
• Presence for 1.1M online local merchants• Backed by IAC
• 100M comments from 20,000 towns and cities across US• 7.8M unique users (Top 10 online newspaper site)• Backed by Gannett, Tribune and McClatchy
• Presence in 88 cities; 22 countries
• $135M in Series C funding with $1.35 billion valuation in April 2010
• 13 million subscribers
Innovation & investment
• AOL & Patch• Acquired for $7 million in June 2009 • Invested $50M in April 2010• As of August, launched more than 100 communities; 400
more in next 6 months
• Yahoo & Associated Content• Acquired in May 2010 for a rumored $100 million• Thousands of contributors to cover local content
• SimpleGEO company indexing 1M+ locations per hour – launching Fall 2010
• Facebook launched Places August 18• 500M active users; 150M access the site via mobile device• The day after launch, FourSquare had it’s biggest check-in
day ever
Geo-targeting Delivers Best ROI
Local ads in a local context are 4X more effective*
* Mindshare Interactive Sprint case study
Consumers Trust ads on Local Media Sites
Source: Online Publishers Association Local Media: From Advertising to Action, August 2008
Advertising on Local Sites Generates Action
Online Maps Help Customers Find Your Product
Dynamic Local Advertising: Great for Automotive
YuMe
Placecast
Put National Campaigns in a Local Context
Topix localized Pep Boys’ ad creative for 573 locations in 35 states
Geo-localization Examples: Sunday Circular
Local Communities Drive National Revenue
$68,000 in teeth whitening – in one day
Mobile: As Local as it gets
Customer service as marketing Direct consumers to purchaseDirect consumers to purchase
Takeaways
• Local Online increasing over next 5 years
• Mobile usage is here today -- and getting bigger
• Geolocation is driving awareness of all local online
• Local audiences + local context 4X more efficient
Everybody online lives somewhere
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