1.
Greg Sterling Sterling Market Intelligence/Opus Research April 29, 2010 ‘ Mobile, Local and Real-Time Search’ (mostly mobile)

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<ul><li>Jobs: lawyer, editor, startups, analyst, blogger, lover, fighter </li></ul><ul><li>Coverage: </li></ul><ul><ul><li>search, directories, verticals/classifieds, online newspapers, “social media,” mobile , video, multi-channel shopping </li></ul></ul>About Me . . . <ul><li>“ Internet’s impact on offline consumer behavior” </li></ul>

3.
Faster . . . And Faster We know something's happening, and we're beginning to sense what it is. We're speeding up; our technology is speeding up; our arts and entertainment and the pace of invention and change -- it's all speeding up. James Gleick, Faster (1999)

4.
How Many Smartphones in This Room? Or should I ask . . . Who doesn’t have a smartphone?

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<ul><li>Exciting pocket computers and tablets </li></ul><ul><li>Ubiquitous connectivity (which is coming) </li></ul><ul><li>Culture of participation/sharing: “tweets, updates, tips” </li></ul><ul><li>Geotagged data, matched with places </li></ul><ul><li>The Cloud: my content, any device </li></ul><ul><li>Internet-based computing will look very different in a few years than today </li></ul>Tweets + Streets “ We’re at the beginning of the beginning” . . . of a new era of computing. --Google Engineering VP Vic Gundotra

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<ul><li>We now can take the Internet with us </li></ul><ul><li>We use these devices to help make decisions </li></ul><ul><li>Influenced by opinions and recommendations of others; deals, discounts, incentives </li></ul><ul><li>All that can now be accessed or pushed in near real time to our handsets in specific contexts. </li></ul><ul><li>There’s also cool stuff like augmented reality (Zillow has a version of this today) </li></ul>Mobile + Local + Real Time: All Connected

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Local, Mobile, Social, Real-Time Converge

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Geotagged Tweets on Maps

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Foursquare ‘Tips’ on Bing Maps

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Quick B.G. on Local

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<ul><li>Local is the ‘last mile of search’; mobile is ‘last block’ </li></ul><ul><li>Local is about driving to the POS </li></ul><ul><li>96% of all transactions happen offline* </li></ul><ul><li>Offline transactions increasingly Web-influenced </li></ul><ul><ul><li>80% to 90% consumers do online research before buying** </li></ul></ul><ul><li>*US Census Bureau, Q4 2009 </li></ul><ul><li>**Compete, Yahoo!, BIGResearch, BIA, other studies (2007-2010) </li></ul>What Is Local?

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<ul><li>Local means different things in different contexts </li></ul><ul><li>Definitions of “local” may also vary depending on whether discussing consumers or advertisers </li></ul><ul><li>Most of what people do online relates to their real-world lives </li></ul>Most of What We Do Online about Offline <ul><li>Maps & Directions </li></ul><ul><li>Restaurants </li></ul><ul><li>Retail/products </li></ul><ul><li>Professional & home services </li></ul><ul><li>Travel </li></ul><ul><li>Jobs </li></ul><ul><li>Cars </li></ul><ul><li>Real Estate </li></ul><ul><li>Entertainment </li></ul><ul><li>Dating </li></ul>

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<ul><li>Google: “20% of searches on Google are related to location” </li></ul><ul><li>comScore: in March Google had 14.3 billion search queries </li></ul><ul><li>That’s TWO BILLION EIGHT HUNDRED SIXTY MILLION local queries monthly (at a minimum) </li></ul>Google: Over 30 Billion Served

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Your Customers Are Digital

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Millennials More Tied to Internet, Tech Source: Pew Internet & American Life (2/10) 93% of Millennials are online 63% of 12-17 yr olds online at least once a day 68% of adults 18 - 29

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Internet Trumps Traditional Media Source: Trulia-Harris Interactive, May 2009 n=2,715 US adults; home buyers n=192 <ul><li>Information sources for home buyers (Internet vs. traditional media): </li></ul><ul><li>62% of home buyers reported use online sources during their housing search </li></ul><ul><li>Primary source: </li></ul><ul><ul><li>41% Internet </li></ul></ul><ul><ul><li>14% print </li></ul></ul>

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Hitwise: Top 20 Real Estate Sites Source: Hitwise, April 17 2010

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Google ‘Verticalizes’ Local for Real Estate

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The Social Media ‘Firehose’ (where the RT data come from)

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Facebook Top Search Term <ul><li>More than 400 million active users </li></ul><ul><li>50% of active users log on to Facebook in any given day </li></ul><ul><li>Average user has 130 friends </li></ul><ul><li>People spend over 500 billion minutes per month on FB </li></ul><ul><li>More than 100 million mobile users, 2X more active </li></ul>

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Facebook On Way to Being #1? Source: Compete, Inc. March 2010 <ul><li>Google: 146,954,711 </li></ul><ul><li>Facebook: 132,040,907 </li></ul>

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The Twitter ‘Firehose’ <ul><li>Twitter has 105,779,710 registered users </li></ul><ul><li>300,000 new users sign up per day </li></ul><ul><li>Twitter receives 180 million unique visitors per month </li></ul><ul><li>75% of Twitter traffic comes from third-party applications </li></ul><ul><li>60% of all tweets come from third-party apps </li></ul><ul><li>600 million search queries on Twitter per day </li></ul><ul><li>Over 100,000 Twitter applications </li></ul><ul><li>3 billion requests a day through its API </li></ul><ul><li>37% of active Twitter users use their phone to tweet </li></ul>

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Mobile (finally)

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Projection: Mobile Bigger than PC by 2014 Source: Morgan Stanley Internet Update 4/2010

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Comparing Populations: US, Online, Mobile Source: Opus Research, comScore, CTIA, Nielsen, US Census Bureau (2009) 4 Major US Carriers: 250M subs approx. Mobile Internet: 73M 4.1B texts DAILY Daily Internet access between 30% and 55%

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Segments: SMS, Mobile Web, Apps SMS: Least “sexy,” broadest reach, platform “agnostic” Apps: Richest experience, smaller audience Mobile Web: Tiny version of site; should be optimized Reach Engagement

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Source: Nielsen, Q1 2010 Projection: US Smartphone Growth

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US ‘Smartphone’ Share Source: comScore, 3/10

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SMS vs. Mobile Internet Source: comScore, Pew Internet & American Life Project (March, 2010) Among US smartphone owners frequency and penetration are greater. Total mobile Internet users in US approaching 75 million on way to 100 million this year

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Activities: Touchscreen Smartphone Users (iPhone/Droid/BlackBerry Storm) Source: Opus Research, 3/10 (n=105 touchscreen smartphone users, total sample 1,300)

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“ Over the last 12 months, how often have you engaged in the following activities?” Source: Opus Research, 3/10 (n=393 smartphone users, total sample 1,300) 38 44 62% at least weekly mobile Internet users 53% of smartphone owners report using mobile Internet “ at least once a day ” 90%+ of iPhone users access the mobile Internet Opus Research, 3/09; Nielsen (2009)

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Source: Nielsen, 12/09 Data from Jan – Sept, 2009 Nielsen: Top Mobile Sites 2009

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Source: Opera Software (3/10) March, 2010 Opera Mini Usage in US Opera: Top Sites

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According to a 2009 comScore survey of 7,300 US iPhone/iPod Touch owners . . . Mobile Preferred Medium? <ul><ul><ul><li>40% said they go online more often on their mobile devices than via PC. </li></ul></ul></ul>

35.
Mobile + Real Estate

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Scores of Apps for the iPhone OS <ul><li>100+ apps shown in response to search for “real estate” </li></ul><ul><li>38 apps for “apartment” </li></ul><ul><li>3 “apartment” apps for the iPad </li></ul>

37.
Trulia Mobile Trends: Buyers <ul><li>The busiest day for mobile day is Sunday, Saturday second </li></ul><ul><ul><li>Sunday has about 70% more usage than Friday (the lowest day) </li></ul></ul><ul><ul><li>Consistent pattern: iPhone app & Trulia access via mobile browser </li></ul></ul><ul><li>Over 50% of searches on iPhone are for properties “near me” </li></ul><ul><ul><li>Most popular city in July was Corona, CA </li></ul></ul><ul><ul><li>Most popular zip in July was 60035 (Highland Park, IL) </li></ul></ul><ul><li>No specific locations dominant </li></ul><ul><li> </li></ul>Source: Trulia, 8/09 ” We hear from agents and consumers who say they found an open house they didn’t know about through the iPhone app.” &quot;Mobile is about weekend house hunting and finding open houses.&quot;

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Trulia Mobile Trends: Renters <ul><li>So far (Since launching rental property search on 4/7): </li></ul><ul><li>Rental performance on mobile is on par with overall mobile performance, in both visits, page views and leads to properties </li></ul><ul><li>Seeing around approx 10% mobile usage for Trulia , with spikes coming on the weekends </li></ul><ul><li>Apple OS is still the biggest source of traffic on our mobile website, but Android is the fastest growing </li></ul><ul><li>Trulia CEO: Rentals even more suited to mobile because they’re more “perishable” and there’s more impulse there </li></ul>Source: Trulia, 8/09

39.
Zillow: Mobile Users More Engaged <ul><li>On the weekends, 15% of homes viewed on Zillow come from mobile devices (10% during the week). </li></ul><ul><li>Relative to Zillow.com traffic, users are viewing active listings 45% more often from mobile devices (which indicates the mobile audience is primarily active buyers, on location or scoping out neighborhoods. </li></ul><ul><li>Over two million homes are viewed on the iPhone each month. </li></ul><ul><li>Zillow iPhone+iPad App - 1.1 million combined downloads. </li></ul><ul><li>Zillow Android App is the leading real estate app in the Android Market, 150K + downloads in one month since launching. </li></ul>Source: Zillow, 4/10

40.
Zillow’s Mobile Future Source: Zillow, August, 2009 “ There is a future where the majority of Zillow usage will come from a mobile device. Quite literally, launching this app has changed the way we are thinking about the future of our business and how people will get their real estate information.” --Amy Bohutinsky, VP Zillow

41.
Mobile Marketing & ROI

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The Paradox of Choice

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How to Think about Mobile <ul><li>It’s real; user base is already large </li></ul><ul><li>Mobile buyers on the go are “actively looking” </li></ul><ul><li>Leads can potentially be better </li></ul><ul><li>Mobile not a “stand alone channel,” use in tandem with online + print – extends reach of other media; think about integration </li></ul><ul><li>Enables immediate response/action from buyers </li></ul>

44.
<ul><li>Mobile Search (already doing SEO/PPC?) </li></ul><ul><li>Display & Rich Media (mobile Web, in-app, video) </li></ul><ul><li>Branded app (publisher, broker, maybe agent) </li></ul><ul><li>Listings (classifieds) </li></ul><ul><li>Do nothing: your data will make it into mobile (probably) </li></ul>What Are the Options?

45.
Google Mobile AdWords: Consumer <ul><li>Pros : Online campaigns can carry into mobile easily (+ PPCall option); CTR & call through rates higher in mobile </li></ul><ul><li>Cons : Much more limited inventory </li></ul>

46.
Google Mobile AdWords: Marketer <ul><li>Target carriers, devices, mobile only </li></ul>

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<ul><li>At least 35 mobile “ad networks” operating in US market. The top ones are the following: </li></ul><ul><li>Google </li></ul><ul><li>Yahoo! </li></ul><ul><li>Microsoft </li></ul><ul><li>AdMob (Google, pending) </li></ul><ul><li>Quattro (Apple) </li></ul><ul><li>JumpTap </li></ul><ul><li>Millennial Media </li></ul><ul><li>AOL </li></ul><ul><li>Greystripe </li></ul>Top Mobile Ad Networks

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Sophisticated Targeting: Mobile ‘PRIZM’

49.
Facebook Targeting: Demo, Geo, Interest <ul><li>Facebook allows multiple layers of targeting based on user registration, location and profile data </li></ul>

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Consumer Attitudes & Response

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<ul><li>Nielsen: </li></ul><ul><li>68% of mobile data users in US opposed to mobile Internet ads, even if those ads subsidize a portion of their bills. </li></ul><ul><li>Only 8% feel mobile ads are trustworthy </li></ul><ul><li>87% are not open to mobile ads even if those ads are relevant to their interests </li></ul>Source: : Nielsen, Citibank 4/09; Opus Research, 3/09 (n=707 mobile phone users) Consumers Historically Hostile to Mobile Ads

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Source : eConsultancy 4/09 n=1,400 US adults “ I Hate Advertising on . . .” Numbers here are the lowest/most receptive I’ve seen based on survey data

53.
% AGREE Source: Opus Research/I2Go, 4/09, n=611 Mobile Internet Users More Receptive

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<ul><li>Movie/event tickets (43%) </li></ul><ul><li>Weather information (39%) </li></ul><ul><li>Clearance/liquidation sales (37%) </li></ul><ul><li>Pizza (31%) </li></ul><ul><li>Clothes (30%) </li></ul>Source: 1020- Placecast, Harris Interactive, 7/09 (n=2,029 US adults) Interested in SMS Alerts/Offers 6. Fast food (27%) 7. Electronics (25%) 8. Music (24%) 9. Happy hour specials or bar and night night club offers (21%)

55.
<ul><li>38% of smartphone owners have taken action in response to mobile ads. Of that group: </li></ul><ul><ul><li>53% clicked on ads </li></ul></ul><ul><ul><li>35% opted-in to receive more information/deal via email </li></ul></ul><ul><ul><li>34% made purchase online or in-store </li></ul></ul><ul><ul><li>32% opted-in to receive more information/deal via SMS </li></ul></ul><ul><ul><li>24% made purchase via mobile </li></ul></ul><ul><li>Response rates vary by campaign and method but are considerably higher than on PC Internet </li></ul>Source: Universal McCann/AOL Study: “Smart Phone, Smart Marketing” June, 2009 Smartphone Mobile Response Rates High

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<ul><li>Mobile coupons redeemed at rates higher than traditional or online coupons: </li></ul>Source: Valassis/NCH, Cellfire, Inmar, Coupons.com, other industry sources ValPak indicated it was seeing 25% redemption rates earlier this year Comparing Coupon Redemption Rates

57.
In research conducted through the holiday season with three brands 65% of consumers that opted-in to follow a brand made a purchase as a result of receiving messages based on place and time. -- 1020 Placecast re ShopAlerts (3/10) Conversion for Opt-in SMS Campaigns

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Respondents Mobile N = 47,658 Online N = 513,973 Source: InsightExpress, 2009 Mobile Display Outperforms Online InsightExpress campaign data

59.
Not ‘Why?’ but ‘When’ & ‘What’ <ul><li>The question is not “why mobile?” but “when mobile?” </li></ul><ul><li>Strategy/tactics: what’s the right approach? </li></ul><ul><li>Mobile should be considered along with other campaigns </li></ul><ul><li>Publishers and channels you already work with and content you generate already being distributed in mobile </li></ul><ul><li>Your prospects and customers are using the mobile Internet, shouldn’t you? </li></ul>“ Ask your doctor, use only as directed”

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<ul><li>Greg Sterling greg [email_address] com </li></ul><ul><li>Twitter.com/gsterling </li></ul>Follow or Contact Me

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Questions?