Reputation and
Presence Management:
Joining the Conversation
A BIA/Kelsey Webinar
Wednesday, October 14th
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Interactive Local Media Conference
Dec. 9-11, 2009 at the Hyatt Regency Century Plaza, Los Angeles, California
• ILM is where the local online media community gathers to learn
what's working, make connections and conduct business.
• According to the latest wave of BIA/Kelsey’s Local Commerce Monitor
Study, 77 percent of small and medium-sized businesses now include
digital/online advertising in their marketing mix. At ILM:09, we will
focus on how local media companies are helping SMB advertisers
manage their online reputations and maximize their online
investment.
• Attendees are a global audience of executives responsible for
corporate management, marketing, product development, business
development, and sales.
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Today’s Webinar - The Communications
Revolution: E-Mail, Reputation and
Presence Management
Today, we are going to look at a new kind of local product – “A White Space”
What you’ll see today are foundation products. What we’ll explore is how
these beginning building blocks will evolve into a much larger and integrated
suite of products that will solve for many of today’s small business market
challenges outside of the SMB’s control. Today, we’ll explore what this
market is, its genesis and evolution and, finally, where it will go and why.
Panelists:
Matt Booth, Senior VP and Program Director, Interactive Local Media,
BIA/Kelsey
Alex Hawkinson, Founder, SMBLive
Matthew Berk, Executive VP, Product Engineering, Marchex
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Tomorrow’s Webinar - The Business View
of E-Mail, Reputation and Presence
Management
We will review the feedback obtained from BIA/Kelsey Interviews with SMBs
currently using alpha and beta releases of Marchex’s and SMBLive’s
platforms. Our results were neither vetted nor pre-approved.
Panelists:
Matt Booth, Senior VP and Program Director, Interactive Local Media,
BIA/Kelsey
Steve Marshall, Director of Research and Consulting, BIA/Kelsey
Oct. 15, 2009
2 p.m. - 3 p.m. EDT
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The BIA/Kelsey Thesis…Why You Should
Care
“Within three to four years, the local market will coalesce
around a platform that facilitates communication
between businesses and consumers.
It will first be built on aggregating consumer feedback
and managing reputation. Later, this platform will allow
businesses to interact and respond to consumers.
The company that controls this platform will create lockin across the local market.”
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Web. 3.0 – The Communication Platform –
The Product Evolution

V1 – The Base Product
 Built on Aggregated Consumer Reviews
 Allows SMBs to Monitor ‘Noise’, ‘Opinion’ while ‘Monitoring Feedback’
 “What are people saying about my business”

V2 – Push-Pull Messaging (Two Way Messaging Begins)
 Listing Submission, Correction and Enhancement
 Placement Engine (Real-Time) – Facebook, Twitter
 Email and Push Offers
 “I’m slow or need to clear inventory”

V3 – Lock-in “Winner Take All”
 Merchants Responding to Consumer Requests, Gaining Influence and
Following
 Consumers Gravitate towards the Product Instance where the most
Merchants are Interactive and Responding
 “I had a bad experience [at, with] my favorite [store, brand]. Wrote a review, the
owner read my review and fixed the problem.”
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MARCO Drivers
1. Deleverage Means Behaviors Are Changing
2. Shift to Interactive Ad Spend will Accelerate
3. Search will Continue to Grow in Share
4. A Partial Effect of Search’s Power and Dominance Means
that “Digital Relationship Building” (like Email) is Critical to
Success…
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The Credit Crisis Is the Inflection Point:
Deleveraging Is Gathering Steam

What we have seen so far ― mortgage defaults, falling house prices,
bank failures, and lower economic activity ― is only the initial stage of a
longer deleveraging cycle

After decades of growth, household debt in the US has only
recently started to contract
Net Borrowings by US Households
Source: Greed &
Fear, 18
December 2008. http://www.federal
reserve.gov/relea
ses/z1/Current/z1.
pdf
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U.S. Local Media and Ad Spend: 5Year Forecast
US$ Billions
Overall CAGR:
-1.4%
(2008-2013)
Source: BIA/Kelsey (2009)
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US: 2008 & 2013 Interactive Ad Market,
Growing from $29.18B to $58.57B
Source: Proprietary research by BIA/Kelsey, mid-2007. Sample: 1,200
SMB advertisers in 4 major US MSAs).
Methodology: Telephone survey. Cosponsor: ConStat.
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The Communication Platform’s Product
Evolution – The 7 Reasons Why
1. People rely on opinions of friends, family and peers to make
decisions
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Both Off-line and On-line, People’s Communication
and Interaction Defines the Services Used and The
Products Purchased
Local searchers are more likely than other groups to utilize local newspapers and magazines for their research.
IYP users go to a printed directory more than any other printed offline resource for their secondary research.
Additional Offline Research
Additional Online Research
Survey question: What additional offline resources did you use for research?
Survey question: What additional online resources did you use for research?
*Option added in 2008
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The Communication Platform’s Product
Evolution – The 7 Reasons Why
1. People rely on opinions of friends, family and peers to make
decisions
2. Time spent on communication activities dominates time
spent on-line; a mirror of off-line habits
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Mirroring off-line behavior, Internet Users Spend
~1/3 of time Online Time Communicating
• People spent 21 hours per person and 27 hours per person in Singapore
and France, in February 2009, respectively
• Communication platforms dominate on-line (IM, Social Networks and Email)
Instant
Messengers,
14.3%
Instant
Messengers,
24.2%
All Other
Categories,
37.0%
Entertainme
nt, 8.6%
All Other
Categories,
49.6%
Entertainment,
13.8%
News/Informatio
n, 1.3%
Community,
1.5%
Business/Financ
e, 1.9%
E-Mail,
5.7%
Blogs,
2.1%
Search/Navigatio
n, 2.3%
Social
Networking,
8.0%
Online Gaming,
2.4%
Source: comScore (2009)
Sports,
1.7%
E-mail, 8.2%
Social
Networking,
5.7%
Directories/
Resources,
Online
3.2%
Search/ Gaming,
Business Navigation, 2.9% Retail,
1.8%
2.4%
2.6%
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The Communication Platform’s Product
Evolution – The 7 Reasons Why
1. People rely on opinions of friends, family and peers to make
decisions
2. Time spent on communication activities dominates time
spent On-line; a mirror of off-line habits
3. Search continues to grow and consolidation leads to
aggregation; few people go to page two
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Searcher and Search Intensity Growth in the U.S
Search growth was partially driven by intensity growth, at nearly 109 searches per
searcher and up 25% versus June 2008.
Search growth was also driven by an increasing searcher base, reaching 202MM
searchers in June 2009.
Unique Searchers vs. Search Intensity
Searches per Searcher
Change vs.
Jun-08
Unique Searchers
Unique
Searchers (MM)
200
150
100
Searches per
Searcher
108.6
86.8
202
192
50
0
100
80
60
40
20
0
+25%
+5%
Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Source: comScore qSearch 2.0 Total US Internet Searchers
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Consider The Various Incentives of a Hotel Search
(Example: New York City Hotel Search)
There were
506,000,000 “hotel”
searches across
Google’s Network in
September – Top 3
position: clicks costs
$3.16 (~$1.6B)
The number 1
Organic Position can
receive up-wards of
40% of traffic
Q: If you owned a
hotel website, what
would you do?
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The Communication Platform’s Product
Evolution – The 7 Reasons Why
1. People rely on opinions of friends, family and peers to make
decisions
2. Time spent on communication activities dominates time
spent On-line; a mirror of off-line habits
3. Search continues to grow and consolidation leads to
aggregation; few people go to page two
4. Editorial resources are too expensive to be fully supported
by advertising; Therefore aggregation of and consumer
reviews dominate local content
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Just Like the Earlier Hotel Example, It Pays to Be First.
But, Editors Are Expensive and Consumer Reviews are
Cheap and Plentiful.
A consumer searches a proper business name.
The example here is “Mountain View Sushi, Sierra
Madre, CA” and the entire search return (except
the map) are companies aggregate content about
that business.
Like 1990 era Travel Agents most businesses are
getting “out-represented”
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The Communication Platform’s Product
Evolution – The 7 Reasons Why
1. People rely on opinions of friends, family and peers to make
decisions
2. Time spent on communication activities dominates time
spent On-line; a mirror of off-line habits
3. Search continues to grow and consolidation leads to
aggregation since page one is very valuable; few people go
to page two
4. Editorial resources are too expensive to be fully supported
by advertising; Therefore aggregation of and consumer
reviews dominate local content
5. Businesses feel hijacked – “Who are all these people writing
about my business?”
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Fair or Not, Businesses Feel Misrepresented.
(Comments to a NYT Article)
“For a small business, giving money to Jeremy Stoppelman and Yelp is like
handing a butcher knife to a serial killer.”
— dveron
“Yelp is a haven for trolls, and now hardworking business owners can take
time out of their busy day to argue with them. Screw Yelp. We’ll be
celebrating when they finally go down the toilet. “
— Luisa
“It took yelp six years to even consider giving small business owners a
voice on their website, and only after a flurry of negative media attention
threatened the viability of its own business. “
— blogorama
Source:
http://bits.blogs.nytimes.com/2009/04/09/yelp-gives-small-businesses-alouder-voice/
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The Communication Platform’s Product
Evolution – The 7 Reasons Why
1. People rely on opinions of friends, family and peers to make
decisions
2. Time spent on communication activities dominates time
spent On-line; a mirror of off-line habits
3. Search continues to grow and consolidation leads to
aggregation; few people go to page two
4. Editorial resources are too expensive to be fully supported
by advertising; Therefore aggregation of and consumer
reviews dominate local content
5. Businesses feel hijacked – “Who are all these people writing
about my business?”
6. Small Business Owners Measuring Instant Gratification (not
ROI)
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BIA/Kelsey LCM Survey – SMB’s Opinion of the
Best to Worst ROI; Measuring an Important
“Perception” of Value: Instant Gratification
Internet Media to Benefit from Perception
ROI Rating
(forced rank)
Email
39%
1
53%
Campaign
Execution to
Response Time
Immediate
Direct Mail
2
2-3 Days
Pay-Per-Click
3
Varies
IYP
4
6 weeks
Print Yellow Pages
5
2-3 Months
LCM, Ratings are by users of that media type.
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Financial Services Media Spend:
Digital Media
An analysis of spending by online and new media underscores the strong position of e-mail
marketing. Although spending on pay-per-click is still very low (2.3%), it is more than double
the spend by Professional Services SMBs on this medium (1.2%).
$ Spent (Avg. Annual)
% of Budget Spent on Media Type
Financial Services Spending on Digital Media
Source: BIA/Kelsey Local Commerce Monitor Wave XII August 2008 (Financial Services sample: 310. Core LCM
XII sample: 299). Methodology: Online. Cosponsor: ConStat.
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The Communication Platform’s Product
Evolution – The 7 Reasons Why
1. People rely on opinions of friends, family and peers to make
decisions
2. Time spent on communication activities dominates time
spent On-line; a mirror of off-line habits
3. Search continues to grow and consolidation leads to
aggregation; few people go to page two
4. Editorial resources are too expensive to be fully supported
by advertising; Therefore aggregation of and consumer
reviews dominate local content
5. Businesses feel hijacked – “Who are all these people writing
about my business?”
6. Small Business Owners Measuring Instant Gratification (not
ROI)
7. After email, ‘Immediacy’ and ‘Instantaneous’ response is
pushing businesses to use communication platforms
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Social Networks Are About Immediacy; Think
Facebook’s News Feed
SMBs that Intend to Use a Page
On a Social Site in Next 12 Months
Overall average @ 32%
Source: BIA/Kelsey Local Commerce Monitor. Wave XIII August 2009 (Sample: 302).
Methodology: Online. Co-sponsor: ConStat.
Note: Scale begins at 10%.
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Twitter’s Core Strength is Also Immediacy
Use of Print Yellow Pages vs. Twitter
(by Age of Business)
Twitter: Overall 9%
Source: BIA/Kelsey Local Commerce Monitor. Wave XI July 2007 (Sample 304). Wave XII August 2008. (Sample 299).
Wave XIII August 2009 (Sample: 302). Methodology: Online. Co-sponsor: ConStat.
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Recap: Web. 3.0 – The Communication
Platform – The Product Evolution

V1 – The Base Product
 Built on Aggregated Consumer Reviews
 Allows SMBs to Monitor ‘Noise’, ‘Opinion’ while ‘Monitoring Feedback’
 “What are people saying about my business”

V2 – Push-Pull Messaging (Two Way Messaging Begins)
 Listing Submission, Correction and Enhancement
 Placement Engine (Real-Time) – Facebook, Twitter
 Email and Push Offers
 “I’m slow or need to clear inventory”

V3 – Lock-in “Winner Take All”
 Merchants Responding to Consumer Requests, Gaining Influence and
Following
 Consumers Gravitate towards the Product Instance where the most
Merchants are Interactive and Responding
 “I had a bad experience [at, with] my favorite [store, brand]. Wrote a review, the
owner read my review and fixed the problem.”
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ABOUT MARCHEX
Marchex is a performance advertising
company that leverages technology to help
advertisers grow their business with local
customers
THE PROBLEM REPUTATION MANAGEMENT SOLVES
• Local Search is a solved problem for consumers…but not small businesses (SMBs)
• SMBs are time poor, lack marketing expertise
• SMB digital footprints are fragmented, disparate and growing without their
knowledge
• Consumer reviews can dramatically affect their business
Reputation Management:
• Gives SMBs visibility into their online presence to inform marketing, operations
• Saves SMBs time (money) by staying on top of their profiles and footprint
• Identifies areas to take action
HOW WE GOT INTO REPUTATION MANAGEMENT
• Marchex has been investing in aggregating and data mining local content since 2003
through it’s local search engine Open List
• Local search is about helping consumers make (better) decisions about where to
spend locally
• The data is filthy and a huge problem
• We realized that local search for consumers is a solved problem.
• SMBs we spoke to were at an information disadvantage online.
• Customer dialogue is the marketing….
• Leverage the same data set, but on behalf of SMBs
PRODUCT OVERVIEW
An easy to use service built on robust local search data, content sources and
useful features.
Data Set
•20+ data/listing relationships
• 8,000+ content sources
• A quarter billion pieces of local meta data…refreshed and growing every night
Customer Profile
For the most sophisticated online SMB to the “starter”
Product Features
• Review summarization and filtering
• Key phrase extraction
• Mentions from across the Web
• Listing footprint: inaccuracies and opportunities
• Comparisons with competitors
• Email alerts
• Social media sharing of content
•Trending and comparison charting
OVERVIEW: REPUTATION AT-A-GLANCE
REVIEWS: SUMMARIZATION AND FILTERING
MENTIONS: FROM ACROSS THE WEB
LISTINGS: INACCURACIES AND OPPORTUNITIES
COMPARISONS WITH COMPETITORS
HOW THIS DIFFERS: LOCAL LISTINGS VS. KEYWORD ALERTS
Keyword alerts are a great place to start but...
An online profile allows a local business owner more control:
- tie information back to a physical listing
- meaningful comparisons of local meta data
- side by side comparisons of businesses by specific geography
AN “INFORMATION ADVANTAGE” FOR SMB’s
Clear benefits identified by our Alpha testers included:
• Actionable data to improve their business
• Non-reviewed businesses active in seeking ratings
• Inaccurate listings identified and corrected
• Competitive reviews undertaken
• Store by store comparisons helping drive consistency
SMB’s AND PARTNERS: JOIN THE BETA TEST PROGRAM
http://www.marchex.com/repmanagement
Amplify Your Online Voice
CloudProfile Overview | October 14, 2009
Company Background
• Founded in 2005, SMBLive is a software company that helps
small businesses to get discovered online, engage their
customers, and grow revenues
• 2006-2008 developed and refined first generation product in
joint development with British Telecom (BT) under the brand
www.BTTradespace.com
• Tradespace has reached >375K small business customers in
the UK since it launched in April 2007
• Based on the learning from this effort, SMBLive has created its
next-generation platform, called CloudProfile
• CloudProfile is available today, and is built for distribution
through partners
The Market
• Historically, businesses looked to their phone company to
‘make the phone ring’ via a Yellow Pages Advertisement
• Increasingly, the ‘ringing phone’ today is a web-based or
social media interaction – Web Chat, Contact Form, Twitter
Message, Facebook Fan Post
• Just as Google disrupted the success of the Yellow Pages
business, there is a coming wave of disruption around social
media and the conversational, real-time web
• For organizations that are looking to expand their
relationship with SMBs, that opportunity is to help small
businesses get online, get found, and engage customers
Consumers Trust Each Other
More Than They Trust Advertising
•
78% of consumers trust peer
recommendations
•
Only 14% trust advertisements
•
Social networks and user reviews
are only a click away
•
Natural and social discovery rule,
and customer service is the new
marketing
Conclusions
• SMBs need to be discovered to survive, they pay a
lot to be discovered, and they HAVE to learn to be
discovered online
• SMBs need the right solution that makes it easy to
be interactive and socially discoverable online.
• By providing small businesses with simple tools to
solve this problem and embrace the web, we can
have a very big impact.
http://www.slideshare.net/CloudProfile/get-to-know-cloud-profile-by-getting-to-know-josh-brooks
What is CloudProfile?
A conversational, social media optimized Web site for small businesses, that includes…
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Customer engagement tools including click-tochat, click-to-call, contact forms, following and more
– so that customers drawn to your CloudProfile will
be able to easily engage with you
1
Public, customer view that serves
as a premier, search-optimized
destination site for information and
updates about your business
2
Private, business owner view
with content authoring,
marketing, social media,
analytics and management tools
CloudProfile helps SMBs…
Get Online
Talk & Be Found
Listen & Respond
Make Better Use of Time
Get Online
Talk & Be Found
Locally
Naturally
Socially
Listen & Respond
Make Better Use of Time
Experience In Market
•
Freemium model works – free basic site, 1-2 premium tiers, DIFM
•
Broad uptake that mirrors SMB market in both size and verticals
– 60% from current base
– 25% customers who had churned coming back
– 15% from outside current base
•
Success across all acquisition channels
– 60% telesales and retail
– 20% online
– 20% “word of mouth”
•
Up to 50% decrease in churn on core services
•
Cross-selling machine
– 4x take rate of complimentary services (e.g. domain registration)
– >10% take rate of DIFM services
Next Steps
• Learn more about CloudProfile, our partner program,
and create your own profile at:
–
–
–
–
http://www.cloudprofile.com
http://learn.cloudprofile.com
http://facebook.com/cloudprofile
http://twitter.com/cloudprofile
• Connect with the Team at:
– http://www.cloudprofile.com/team
– http://hawkinson.cloudprofile.com
• Schedule time for a drill-down to review partner model
and evaluate our quick-start program details
Interactive Local Media Conference
Dec. 9-11, 2009 at the Hyatt Regency Century Plaza, Los Angeles, California
Webinar attendees receive $200 off ILM:09 registration.
Register online at www.kelseygroup.com/ilm2009 and use one of the following promo codes:
Public: ILM09WEBINAR
BIA/Kelsey Clients: ILM09WEBINAR-C
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affecting the media and communication industries today. We provide a range of research,
consulting and analysis services designed to complement a company's mission statement and longterm or interim strategic goals.
http://www.bia.com/services_planning.asp
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(ILM) is the authoritative source for research and analysis on business models, technology,
advertising models and trends in the interactive local search and media space, offering a global
view of local search, mobile search, social media, Internet video, directory assistance and free DA.
http://www.kelseygroup.com/services/interactive-local-media.asp
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Thank you for attending today’s event.
Following today’s event you will receive an email with a link to a landing
page so you may download the slides, view the video and listen to a
MP3, as well as access other resources.
We will now take questions.
All unanswered questions will receive a response in the coming days.
Important Links:
ILM Conference: www.kelseygroup.com/ilm2009
ILM Advisory Service:
http://www.kelseygroup.com/services/interactive-local-media.asp
Marchex: http://www.marchex.com
CloudProfile: http://www.cloudprofile.com
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