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The Local Media & Advertising Experts
Webinar
Digital Adoption by SMBs:
A Preview of BIA/Kelsey's Latest
SMB Research
August 20, 2014
Today’s Webinar
 Rapid discussion of Local Commerce
Monitor (LCM) Wave 18 (Q3/2014),
BIA/Kelsey’s ongoing study of the
advertising behaviors of small and mediumsized businesses (SMBs)
 Talking points:



Overview of survey questions
Five Initial Takeaways from LCM 18
SMB marketing going forward
Steve Marshall
Director of Research
 SPECIAL INVITATION:
 LEADING IN LOCAL: SMB Digital Marketing
Foremost event of its kind, specifically tailored
to digital marketing solutions that win for small
and medium-sized businesses (SMBs)
Abid Chaudhry
Sr. Director Industry
Strategy & Insight
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Quick Look: Local Commerce Monitor (LCM)
 Online survey of SMBs about media
usage, spend, performance
assessments, online presence, new
tools (e.g., cloud-based services)
channels, loyalty and discount
programs – and much more.
 Unique, fresh, trusted – since 1999.
 Sample of 550 SMB respondents.
Diversified across categories, market
types, age cohorts.
 This material is a meld of the two
sub-samples, Core and Plus
Spenders.
 New survey: Wave 18, Q3/2014
Survey details in Appendix. Results based on 600 responses have a confidence interval of +/- 4.0% at the 95% confidence level.
The confidence interval is larger for those questions that were asked of just a subset of the full sample.
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Broad Coverage of the Local Media Market
LCM covers over 35 different media and platforms
used by SMBs for advertising or promotion. The different
media fall into these 10 top-level groups:
 Online
 Video
 Traditional
 Broadcast
 Local Directories
(e.g., search, display ads, blogs)
(e.g., direct mail, newspapers)
 Mobile
(e.g., search, SMS, display)
 Local Coupons
(print and online)
(e.g., website videos, YouTube)
(print and online)
 Giveaway Items
 Community Sponsorships
 Social
(e.g., Facebook, Twitter)
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LCM Wave 18:
You asked, we delivered.
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New Questions for Wave 18 (2014)
 Updated List of Media –
Including:




Pinterest
Instagram
Streaming audio
Promoted Tweets
 Social Engagement:
Time spent on social media
 Click Fraud:
How big an problem?
 Agency Relationships
(and satisfaction)
 In-Store Local Behavior:
Use of mobile devices in-store
when shopping
 Franchise Marketing:
Ad/marketing services desired
from parent franchisor
 Customer Incentives:
Type of incentives used for
customer loyalty programs
 Using Transaction Data:
Use of data and information
collected in a transaction (sale)
 Social Media Tracking
Customer lists: Keep list of FB
“Likes”
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LCM Wave 18:
(and much, much more)
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LCM Wave 18 Release Schedule & Tie-In
with Conference
 Full survey formally released Sept. 15, 2014
 BIA/Kelsey Advisory Service Clients will receive full LCM report
 Report also available for individual purchase
 Key conference themes at upcoming conference,
LEADING IN LOCAL: SMB Digital Marketing –
Sept. 22-24 in New Orleans
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LOCAL COMMERCE MONITOR 18
Turning Market Data into Action.
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The Local Commerce Monitor
identifies and sizes key long
term trends and behaviors of
U.S. SMBs.
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Key trends & behaviors that can
be used to make data-driven
market and product decisions.
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Five Initial Key Takeaways
You Need to Know from LCM 18
Top Five Findings Thus Far
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Takeaway 1:
Spend on advertising media has
plateaued.
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SMBs Are Spending About the Same
on Ad Media
$50,000
SMB Media Spend
(Average Annual Spend)
$40,000
WAVE 16
WAVE 17
$30,000
WAVE 15
$20,000
2011
2012
2013
2014
Q101
Average annual spend by SMBs that spend for ad media.
Source: BIA/Kelsey Local Commerce Monitor™ (LCM) surveys. Full sample. Outliers excluded (>$500k).
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Takeaway 2:
Spend for online presence and
engagement is increasing
strongly.
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SMBs Are Spending More on Presence
$7,000
SMB Online Presence Spend
(Average Annual Spend)
$6,000
$5,000
WAVE 17
$4,000
WAVE 16
$3,000
$2,000
WAVE 15
$1,000
$0
2011
2012
2013
2014
Q307
Average annual spend by SMBs that spend for online presence.
Source: BIA/Kelsey Local Commerce Monitor™ (LCM). Full sample. Outliers excluded (>$30k). Methodology: Online.
© 2014 BIA/Kelsey. All Rights Reserved.
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That said -
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Takeaway 3:
SMBs are integrating their online
properties, as they start to build an
online ecosystem.
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More Online Properties Integrated
SMBs Reporting
Integration of Online Properties
2013 (17)
2014 (18)
Key types of
integration:
19.8%
28.0%
72.0%
 Same person
responsible
 Consistent design
80.2%
= Online properties are integrated (to some degree)
Q303A.
Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 18 (Q3/2014); LCM Wave 17 (Q3/2013). Full sample.
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Takeaway 4:
Discounts and promotions are
growing and evolving.
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Discounts and Promotions Getting “Baked In”
Total Business
That will come from Discounts
(Est. for Next 12 Months)
Menu of Discount Options
Keeps Growing
2013 (17)
17.7%
 Prepaid deals (“Daily
Deals”)
 Online coupons
 Mobile deals
 Print coupons and books
82.3%
 Coupons in print media
 Direct mail
Q115
Question wording:
What percentage of your total business do you estimate will come from promotions such as discount deals, 'daily
deals', coupons, or similar discount offers. (Please estimate the overall amount for the next 12 months)..
Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 17 (Q3/2013.) Full sample. Methodology: Online.
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Takeaway 5:
Social media has become
a pivotal platform.
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Social Media is Now Central to SMBs in
Reaching Their Audience
Social Media compared to
all other media categories
(Wave 18):
 #1 in Utilization
 #1 in Share of Spend
Source: BIA/Kelsey Local Commerce Monitor™ (LCM) 18 Q3/2014. Full sample. Methodology: Online. Data is
preliminary.
© 2014 BIA/Kelsey. All Rights Reserved.
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POLL
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LOCAL COMMERCE MONITOR 18
Turning Market Data into Action.
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What LCM says about…
The Future of SMB
Marketing
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Future of SMB Digital Marketing
 Customer interaction activity chain
 Acquisition; info capture; segmentation; tracking; offer
customization; email and marketing automation; 2-way dialog
 Performance analytics
 To allocate digital spend
 More resources going into social media and
customer engagement
 Content!
 Discounts and loyalty programs
 More robust
 Modular cloud-based tools
 To support all of this!
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Want More LCM Data?
 See our series of LCM infographics
www.biakelsey.com/LeadinginLocalSMBDigital/SMB-research.asp
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Purchasing LCM Research
 Interested in learning more about LCM or getting a custom
cut for your business?
 Full LCM Wave 18 research available Sept. 15
 Contact:
Steve Passwaiter, VP Business Development
[email protected] or (703) 818-2425
 Visit: www.biakelsey.com/LocalCommerceMonitor
BIA/Kelsey is helping clients LEAD IN LOCAL through industry and local
market forecasts, advisory research, small business surveys, conferences
and more. Learn more on our website: www.biakelsey.com.
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Continuing the Conversation…
LEADING IN LOCAL:
SMB Digital Marketing
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Conference Overview
 Conference focused on the leading edge of SMB digital
marketing innovation

Digital/online media, local sales strategies, merchant outreach, social media,
local search, mobile strategies, customer retention solutions
 Exclusive research from BIA/Kelsey’s Local Commerce Monitor
(LCM) small business research and our U.S. Local Media
Forecast 2015

Valuable data, insights and intel for the fall strategic planning
 45+ speakers with distinct perspectives

Solution providers to SMB marketers, startups, sales executives, women
media professionals
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Speaker & Session Highlights
Beating Competitors with 100X Your Spending Power
OPENING KEYNOTE: Kevin Ryan, Co-Author, ‘Taking Down Goliath’
Segmenting SMBs and Super-Serving Them
Sharon Rowlands, CEO, Reach Local
#NewParadigm: Social Media’s Shift of SMB Marketing & Commerce
Joseph Devoy, Product Marketing Manager, Local Ads, Facebook
Groupon's New Marketplace: 'Anytime Anywhere'
Dan Roarty, VP, Local Products, Groupon
Beyond Advertising: SMBs, Loyalty and Promotions
Rob Bethge, VP, Perka (First Data)
Stuart Wall, CEO, Signpost
Randy Clark, SVP, Marketing, Mercury Payment Solutions
See full agenda & speakers:
www.biakelsey.com/LeadinginLocalSMBDigital/agenda.asp
© 2014 BIA/Kelsey. All Rights Reserved.
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Join Us In the Incredible City of
NEW ORLEANS, SEPT. 22-24
Save $200 with Promo Code: LCMSMB
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The Local Media & Advertising Experts
Questions & Comments:
Stephen Marshall
Research Director
[email protected]
Abid Chaudhry
Senior Director of Industry Strategy and Insight
[email protected]
© 2014 BIA/Kelsey. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could
result in termination of the client relationship, fines and other civil or criminal penalties under federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the
information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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