Trends Shaping Local Search in 2014

© comScore, Inc. Proprietary.

Trends Shaping Local Search in 2014

© comScore, Inc. Proprietary. 4

Presenters

Mike Pycha Executive Director Neustar Localeze

Gregg Stewart President 15miles/Geary LSF

Chelsea Heltai Senior Analyst comScore

Danielle Zazula Director, cMS comScore

Greg Sterling Senior Analyst Opus Research


comScore 2 Million Person Global Panel Comprehensive View of Digital Consumer Behavior

Online Advertising

Video

Search

Demo- graphic Profiles

Online Behavioral

Profiles

E-Commerce

Website and App Usage

PC

Smart phone

TV

Tablet

Gaming

POS

Server

V0113



▶  Fast, easy, cost effective way for businesses to manage their online identities"▶  Reseller programs to help your clients manage their local search profiles"▶  Accurate, consistent business identities for search & mobile platforms !


Introduction & Background

comScore analyzed the behavior, attitudes, and intentions of online local business searchers.

Study Design: Overall study design leverages both a quantitative survey and behavioral data from comScore’s U.S consumer panel.

-  Survey Design: The survey study consists of a targeted sample of over 3,000 users of local business Internet searchers, broken into 3 search categories: Internet Yellow Pages, Local Search Sites, and Portal Search Sites -  Behavioral Data: comScore provides additional analysis of total web search activity, local web search activity, and local mobile content consumption.


Topics for Today

v Greg Sterling: The State of Local Search

v  The Increase of Multi-Platform Searchers

v  Local Searcher Needs by Device

v  The Role of Site Category in the Local Search Ecosystem

v  Local Search by Business Category

v  Key Findings

v Q & A


1. Greg Sterling’s Introduction to

the State of Local Search


Why Local Matters: Money + Impact

•  E-commerce is outpacing traditional retail spending growth

•  E-Commerce accounted for 7% of total US retail spending*

•  Offline spending on products and services account for the remaining 93%*

•  Offline spending is increasingly impacted by internet/search

* Source: US Census Bureau (February 2014)


Mobile Search = Higher Local Volumes

•  Google: Mobile search volume (globally) may surpass PC search query volume this year

•  Roughly 40% to 50% of mobile search carries a local intent (Google, Microsoft)

As search shifts to mobile, it means a higher % of location-based queries/lookups


Local Search Study Since 2007

•  Local is arguably the most important part of the search market because of its financial impact -- $T

•  Since 2007, Local Search Study has been a benchmark for marketers and search industry

•  Most comprehensive single study in the market

•  Tracking the evolution of consumer behavior and cross-platform search

•  Helps guide marketers in planning and allocating their budgets


2. Searchers are interacting with local content on a greater

variety of devices


Change Year-Over-Year

17.8 19.7 18.6 20.7 20.5 20.2 19.3 19.4 19.0 18.5 19.1 17.9

10.09.4

8.910.3 10.6 10.2 10.3 10.7 10.4 9.7 9.2

8.8 8.3

18.1

Dec-2013

28.3

Oct-2013

26.8

Nov-2013

26.4

Jun-2013

29.6

May-2013

30.3

Apr-2013

31.1

Mar-2013

30.9

Feb-2013

27.5

Sep-2013

28.2

Aug-2013

29.5

Jan-2013

29.1

Dec-2012

27.8

Jul-2013

30.1

Search Engines Non-Search Engines

2012

212.6

347.7

230.9

2013

116.8 124.6

337.2

-6%

+9%

qSearch

Total Web Searches (Billions)

PC based searches increased slightly year-over-year, driven by an increase use of search engine websites.


MobiLens TabLens

+24% YoY

+60% YoY

U.S. Total Device Owners Share of Device Owners that use Device

for Local Search

The mobile phone and tablet audience represents a growing population with high likelihood of exposure to on-device local search.

PC/L

apto

p

Mob

ile P

hone

Tabl

et


Satisfaction with Local Search on Device of those who use each device

As mobile phone and tablet owners gain more experience searching on-device they are less satisfied. There is an opportunity for improving their experience.

Understanding what drives mobile phone and tablet search

is the key to improving satisfaction.


3. Mobile phone and tablet searchers do not want to be

overwhelmed with content


Reasons for Using Device for Local Search of those who use each device

Mobile Phone increased 4 pts Y/Y

Tablet increased 6 pts Y/Y

Mobile phone and tablet search is driven by a need for information on the go. Low price points influence their penetration and competitive edge over PCs.


Importance of Depth of Information by Device % that claim it is important, top 2 on a 7 pt scale of those who use each device

Mobile phone and tablet searchers place the same level of importance on depth of information as PC/Laptop searchers.

-2 pts

-7 pts


Primary Information Sought on Local Search based on last local search

Make address/directions easy to find to satisfy mobile phone searchers. Give tablet searchers the information needed to compare you to your competitors.


The majority of mobile searchers believe mobile site design is important. Sites must provide easy access to the information that searchers demand.

of those who search locally on their mobile phone believe

mobile site design is important

Full Site Mobile Design Mobile App


Device Essentials

Working Hours

Share of Device Traffic by Time of Day

Tablet search function could be influenced by time. 44% of tablet traffic occurs after 5PM, when users are less able to reach brick-and-mortar stores.


4. Mobile phone based search drives

in-store purchases $

$


Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage Study Did you make a purchase from the local business?

% of Searches that Resulted in a Purchase based on last local search

Compared to other devices, mobile phones have the highest conversion rate. Nearly 80% of mobile phone searches end in a purchase.

Share of tablet searches that end in a purchase decreases as its search function becomes comparative

in nature.


Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage Study Did you make a purchase from the local business?

Location of Purchase based on last local search, of those who made a purchase

Nearly 3 out of every 4 mobile phone searches that end in a purchase bring customers into brick-and-mortar stores.


60% 63% 45%

14% 13%

27%

20% 19% 22%

7% 6% 6%

PC/Laptop Mobile Phone

Tablet

Within a few hours A day A few days A week or more

Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage Study How much time passed between when you finished researching the local business online and when

you made your final purchase? (Don’t Know removed from base)

Time Between Research and Purchase based on last local search, of those who made a purchase

3 out of 5 PC/Laptop and mobile phone searches that end in a purchase are made within a few hours of the research process.


5. Searches on Portal, IYP, and Local Sites have a similar chance of ending in a purchase $

$

$


Share of Searches Ending in a Purchase based on last local search

Share of searches that end in a purchase has capped out at 64% for IYP and Local Sites. Portal Sites are still catching up to this rate.


Expected Business Information Available on Site based on last local search

Searchers know to go to IYP Sites for high level information (telephone numbers, addresses) and Local Sites for maps/directions.


Branded vs. Independent Local Business Searches based on last local search

IYP offers a unique insight into local businesses. As such, it has the highest share of searches for independent businesses.

Size of business is not an excuse for lack of Portal

presence.

50% of independent business searchers and 49% of branded business searchers on Portal Sites

expect to find the businesses website


6. Local searchers interact with different

categories of businesses

restaurants

health & fitness

shops

in unique ways


23% 23%

Shops 22% 22%

Services 20% 19%

Health/Fitness 10% 10%

Entertainment 7% 10%

Financial 5% 5%

Travel 5% 3%

Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage Study Please select what type of business you were looking for during your last local business search at <<INSERT 2>>?

Restaurants and shops were the most common local search categories. Top search categories remain consistent over the past year.

2012 2013

Category of Local Search based on last local search

© comScore, Inc. Proprietary. 34 Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage Study

From what device did you do your last online local business information search?

Category of Local Search based on last local search

Each device has a skew in category of local search. Businesses should consider what device appeals to their audience when marketing.


Device Time of Use and Category of Search Suggests to…

Advertise… On… During… PC/Laptops Work Hours

Restaurants Mobile Phones

The Evening

The Evening Health & Fitness Tablets

Entertainment

© comScore, Inc. Proprietary. 36 Source: comScore custom research - 15miles/Neustar Localeze Local Search Usage Study

In your last search on <<INSERT2>> did you have a specific local business in mind?

Marketing efforts that drive health & fitness, restaurant, and financial consumers is impactful as they tend to search with a specific business in mind.

% of Local Searches for a Specific Business based on last local search


in conclusion…


1.  Searchers are interacting with content on a greater variety of devices o  Over the past year smartphone ownership has increased 24% and tablet ownership

60%. Most use these devices for local search.

2.  Mobile phone and tablet searchers do not want to be overwhelmed with content o  Mobile phone and tablet searchers demand different information. Address/Location is

the top piece of information that mobile searchers need, while tablet searchers are looking for comparative information that allows them to find a business.

3.  Mobile phone based search drives in-store purchases o  78% of searches made on a mobile phone end in a purchase – most of which are made

in store. 4.  Searches on Portal, IYP, and Local Sites have a similar chance of ending in a

purchase o  Over 60% of searches end in a purchase.

5.  Local searchers interact with different categories of businesses in unique ways o  Businesses should consider these different methodologies when determining how to

market their brand.

© comScore, Inc. Proprietary.

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Questions?

Danielle Zazula [email protected]

Chelsea Heltai [email protected]