Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
SIINDA Conference: Local Digital Media EcoSystem
1. The Local Digital Media Eco-System
A view from across the pond
1
Presented by Doug Meeker, May 15, 2014
2. The Doug Bio
2
Marketing digital products to SMB’s
for majority of career
18 years in Local Digital Media via
AOL, Examiner, Gannett
Built and led large scale sales
efforts for display, directory, social
and daily deals.
GM of AOL YP and Local Search
Investor/advisor to local digital
media start-ups
Small Business
Marketing
YP/ Local
Search
City
Guides
Daily
Deals
Social/
Crowd-
Source
Operator
3. What does local digital media mean?
3
For Consumers
Geo-based content
Query – search, directory
Context – news, info.
For SMB’s
Marketing targeted at a
specific geo-targeted
audience
For National Advertisers
Marketing targeted at an
aggregation of geo-targeted
audiences
Geo-Centric
Contextual
Personalized
4. How Did We Get Here?
4
To view video, click on the image above or paste this link URL into
your browser: https://www.youtube.com/watch?v=WxsuxaHTVLg
5. A Timeline of Local Digital Media
5
1996 2000 2004 2008
Craigslist
Yahoo
AutobyTel
Digital City
Nynex YP
Monster
CitySearch
Sidewalk
MapQuest
Careerbuilder
Google
Autotrader
Yellowpages.com
Verizon Super Pages
Angie’s List
Service Magic
ReachLocal
Yelp
Facebook
Yodle
Twitter
Yext
Living Social
Groupon
Patch
2014
6. Timeline
6
1996 2000 2004 2008
Craigslist
Yahoo
AutobyTel
AOLDigital City
Nynex YP
Monster
CitySearch
Sidewalk
MapQuest
Careerbuilder
Google
Autotrader
Yellowpages.com
Verizon Super Pages
Angie’s List
Service Magic
ReachLocal
Yelp
Facebook
Yodle
Twitter
Yext
Living Social
Groupon
Patch
Web 1.0
• Portals
• Dial-ups
• Cityguides vs.
legacy
• AOL, Netscape,
Microsoft
Web 2.0
• Search
• Broadband
• Local search vs.
YP
• Google, Yahoo,
Amazon
Web 3.0
• Social
• Mobile
• Apps vs. desktop
• Facebook, Twitter,
Apple
2014
7. The local digital media eco-system
7
Sales & Marketing Infrastructure Content
Digital Marketing Services Platforms
Analytics
Search
News & Information
Commerce
Ad Networks
Social
8. Look what’s coming ...
8
2,200+ start-ups on Angelist
have SMB’s and localized
audiences as their targets.
Trending on AngelList
9. SevaCall
9
To view video, click on the image above or paste this link URL into
your browser: http://vimeo.com/41472479
15. Time spent online is exploding
15
http://www.businessinsider.com/were-
spending-a-lot-more-time-online-thanks-to-
smartphones-and-tablets-2014-4
Source: comScore
16. Consumers prefer mobile apps vs. mobile web
16
Source: Flurry Analytics
http://static3.businessinsider.com/image/53
3ae0846bb3f7443c56bb68-1200-
900/2014_04_01_time.jpg
22. Local US Ad Market
22
Newspapers
17.0%
Direct Mail
27.0%
TV
15.7%
Radio
11.2%
Yellow Pages
5.8%
OOH
5.5%
Cable
5.1%
Magazine
2.4%
Online / Interactive
8.2%
*ERPM
1.2%
Mobile
0.9%
2014 U.S. Local Media Revenues — $142.5 Billion
*ERPM = Email, Reputation
and Presence Management
Digital revenues associated with traditional media (e.g., websites associated with local TV stations, local radio stations,
newspapers and magazines) are included in the revenues for the traditional media. Revenues for Internet Yellow Pages that
are associated with print Yellow Pages are included in the overall Yellow Pages media category.
Source: BIA Kelsey
23. Steady shift to digital
23
$111.5 $112.2 $110.7 $111.4 $110.7 $112.7
$21.2 $24.0 $27.4 $31.1 $35.0
$38.5
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
2011 2012 2013 2014 2015 2016
Traditional Online/Digital
US$Billions
Note: Numbers are rounded.
2011-2016
CAGRs:
Total Media
CAGR 2.6%
Traditional
Media
CAGR 0.2%
Online/Digital
Media
CAGR 12.7%
$136.2
Note: Numbers are rounded.
$132.8
$138.1 $142.5
$145.7 $151.3
Source: BIA Kelsey
25. The time spent vs. spend gap persists
25
http://www.slideshare.net/kleinerperkins/kp
cb-internet-trends-2013
Source: Kleiner, Perkins, Caufield and Byers
27. SMB Landscape
27
Overall Challenges
Tepid economic recovery
Time strapped and resource
short – not inclined to hire.
Lack expertise – digital media
can be complex
Vendor Inflicted Damage
SMB’s avg. 20-30 cold calls
per mo. from DMS vendors
“Me too” products hard to
differentiate
Transactional sales approach
Economic Challenges
Resource Constraints
Business Complexities
Differentiation
28. Vendor Landscape
28
Cost of Sales Conundrum
Rise of low margin products – SEM
Decline of high margin products –
print, display, sponsorship
Price wars - to meet volume quotas
Churn – endemic at low price points
Changing SMB Expectations
Demand for performance based
products – CPC, CPL, CPA
Perceptions about digital – market
“numb” to current pitches
Confusion about what to do in
Social
Margins
Fragmentation
Commoditization of Ad
Inventory
Performance Product
Demands
Expertise
Changing Consumer
Interests
45. Common Traits
45
Large media conglomerate
√ √ √ X
Major $ invested to build/acquire $168M $200M N/A $14.4M
Innovative product vs. me too?
√
Newsletter
X
Hyper-local
News
X
Local
Search
√
Original monetization model Display
(CPM)
Display
(CPM)
YP Listing
fixed price
Display
(CPM)
Multiple monetization strategies
√ √ √ √
Management turnover
√ √ √ √
Topline impact on mother ship
X X X N/A
Shut down/absorbed into the mother ship
√ √ √ √
51. Key Drivers
51
Mobile
Big Data
The FeedPlatforms
Commoditization
Not just for brand marketers
The rise of native advertising
Point of sale meets marketing
Falling prices
56. What’s Missing - Innovation in Sales
56
Challenges
Quantity vs. quality lead generation
SMB call fatigue
Outbound sales efficiency
Low success rates = low morale
Selling products vs. solutions
Don’t fit
Don’t need
Don’t want
Churn/burn vs. grow/elevate
Metrics don’t do context
Lack of credible career paths
Minimal back end support
De-valued Sales leadership
Solutions
Quality vs. quantity lead generation
Target by projected spend - $1,500+?
If below, bypass/outsource
Build culture of connect/success
Sell solutions vs. products
Package by vertical
Avoid/monitor over selling
Create basis for ongoing relationship
Go consultative vs. transactional
Evaluate performance holistically
Create credible career path tiers
Invest in back end support
Dynamic Sales leadership
58. How to approach
58
Professional
Sales Force
• Consultative in nature
• Focused on long term relationships
• Solution oriented – media and platform
Solution
Marketing
• Highly targeted by spend levels
• Vertical orientation
• Leverages product innovation
Innovative
Products
• Addresses current and drivers
• High margin, unique, value proposition
• Addresses demand horizon
59. Summary
59
1. Here come the big guys!
2. Startups chipping away – One APP at a time
3. Product innovation - focus on the demand horizon
4. Organization wide innovation – not just products
5. It’s almost not too late