Local Insights & Strategies Impact of Digital on Offline Consumer Behavior Evolution of Local Search Search to Assisted Discovery Directories to Marketplaces ROI Speculation to Actual Measurement Inferred and Expressed Intent Ambiguity Regarding Intent Specific Site Categories Ranking on the SERP Search = Directional Intent Online Influencing Online = Reviews Internet Reach Extended Mobile Enables "Location Analytics" Multiple Sources and Multiple Devices Mobile Now the Primary Device New Kinds of SEO (LBO/PVO) From SEO to Data Optimization AI + NLP + VA + UI + New Search Experiences Screen Free Search, Connected Cars, New Realities Conversational Commerce AI / Bots / Assistants #LSS2016

1. STATE OF LOCAL: THEN & NOW
GREG STERLING
VP Strategy & Insights – LSA
@gsterling
#LSS2016

2. #LSS2016
About LSA
• LSA is a non-profit trade group based in
Michigan
• 300+ members in 27 countries
• Members include RIO, Google, YP, Yahoo,
Yelp, Microsoft . . .
• Focus on local marketing/LBS – enterprise
and SMB

3. #LSS2016
• LSA, Search Engine Land
• Impact of digital on offline consumer
behavior
• Following local since Y2K
• Twitter: @gsterling
About Me (Semi-Boring)

4. #LSS2016
• Appeared in People Magazine in college
• Co-wrote an independent film that was
produced last year
• Worked for the law firm that represented
OJ before “The People vs. OJ Simpson”
lawyers took over
• Impersonations: Yoda, Pee Wee Herman
About Me (Fun Facts)

5. #LSS2016
Local Search
Yesterday Today Tomorrow

6. #LSS2016
Evolution of Local
• From search to “assisted discovery”
• New user experiences/assistants
• From directories to marketplaces
• ROI: from speculation to actual measurement
(O2O, transactions)

7. #LSS2016
What Is Local Search?
“Local'search'is'the'use'of'
specialized'Internet'search'
engines'that'allow'users'to'submit'
geographically3constrained3
searches3against3a3structured3
database3of3local3business3
listings.”
;;Wikipedia''

8. #LSS2016
Inferred/Expressed Intent
“20%'of'[desktop]'
searches'on'Google'
are'related'to'
location”
;; Google,'4/10

9. #LSS2016
Ambiguity re Intent
One;third'of'mobile'
searches'are'local
;; Eric'Schmidt'9/10
40%'of'mobile'searches'
are'local
;; Marissa'Mayer'5/11
30%'of'mobile'
searches'are'
“related'to'location”
;; Omid Kordestani
7/15
10/12:'50%3of3mobile3search3is3local

10. #LSS2016
“Local'content'defined'as'searching'for'information'on'
maps,'movies,'business'directories'or'restaurants.”
Specific Site Categories

11. #LSS2016
Ranking on the SERP

12. #LSS2016
Only Part of the Picture

13. #LSS2016
Broader Construct
How'consumers'use'
digital'media'to'help'
make'purchase'decisions'
ultimately'fulfilled'
offline/locally

14. #LSS2016
San'Diego'Mexican'food
Search = Query in a Box?

15. #LSS2016
“Search” = Directional Intent

16. #LSS2016
Local Search = Online-to-Offline
Most Online Research Culminates Offline

17. #LSS2016
Consumers Have Always O2O’d
Online influencing offline – think reviews

18. #LSS2016
Follow the Money
Source:(US(Commerce(Department,(various(US(government(agencies,(World(Bank(
GDP ~$18T
70% of consumer spending
Within 15 – 20 miles of home/work
92% of retail spending in stores
$4.8T (stores) vs. ~$300B (online) in 2015

19. #LSS2016
Internet Reach Extended
82% of shoppers say they consult their phones
on purchases they're about to make in a store
Source:(Google/Ipsos consumer(survey(data(2/16

20. #LSS2016
Google, Facebook, xAd, ThinkNear, Twitter, YP, Placed,
Factual, NinthDecimal, Verve, UberMedia, SITO Mobile,
Go2Mobi . . .
Mobile Enables “Location Analytics”
80%

21. #LSS2016
From Funnel to Pretzel
Consumer funnel has always been something of a fiction

22. #LSS2016
Multiple Sources, Devices
Source:(IDC(survey(of(750(US(adults((18(to(44),(80%(were(smartphone(owners((2016)
Local consumer purchase path involves
multiple sites/sources – and devices

23. #LSS2016
Less than 40% Start with “Search”

24. #LSS2016
Mobile Now the Primary Device
Source: xAd 2015 Mobile Path to Purchase report based on consumer survey data

25. #LSS2016
Especially for Local
Source:(Thrive(analytics/LSA(2015
Primary device used for local information searches

26. #LSS2016
All Mobile Queries “Potentially Local”
Source:(statements(made(at(LSA16(conference,(SF,(CA(3/16
Google director of
engineering Chandu Thota
said that mobile search is
inherently local and that
Google regards all mobile
queries as potentially local

27. #LSS2016
Location History: Real World Data
80%

28. #LSS2016
New Kinds of “SEO” (LBO/PVO)
80%Location3Based3Optimization3(LBO)3– against3place3visits,3even3
sales
Audience3targeting/validation
Offline3to3online3retargeting3

29. #LSS2016
From SEO to Data Optimization
95%3
of3time3spent3in3apps
Source:(Yahoo/Flurry((2016)(

30. #LSS2016
M-Search Increasingly App-Like

31. #LSS2016
Paid Dominates the Screen

32. #LSS2016
Mobile Pages Boosted
“Beginning in May, we’ll start rolling out
an update to mobile search results that
increases the effect of the ranking signal
to help our users find even more pages
that are relevant and mobile-friendly.”
-Google webmaster blog 3/16/16
AMP:3Accelerated3
Mobile3Pages

33. #LSS2016
AI + NLP + VA + UI =
New Search Experiences
Source:(MindMeld,(October(2015,(n=1,800(US(smartphone(users
Momentum: 60% started using w/in
last 12 months

34. #LSS2016
Screen-Free Search

35. #LSS2016
Connected Cars

36. #LSS2016
New “Realities”

37. #LSS2016
More Channels, Fragmentation

38. #LSS2016
Messenger: Assistant/Search Substitute?

39. #LSS2016
Launch partners include Bank ofAmerica, Burger King, CNN,Expedia,Fandango,LivePerson,Salesforce,
Shopify, StubHub,Thrillistand UNICEF
“Conversational Commerce”

40. #LSS2016
Taco Bell Tacobot

41. #LSS2016
Conclusions/Takeaways
• Mobile centric consumer
• More paths for “local discovery”
• AI/bots/Assistants
• More fragmented user behavior, new UI/UXs
• From “Local SEO” to local data syndication
• Location analytics and closed loop tracking

42. #LSS2016
Thank You!
@gsterling
greg.sterling@gmail.com
greg@theLSA.org