The Usage and Value of Local Search Sources comScore study findings / marketer application Stuart McKelvey, CEO - TMP Directional Marketing Search with a Sharper Focus Discussion Topics • Sites used for Local Search shift as the consumer moves through the purchase process – Utilization of multiple sites • Difference in search activity: – Product vs. Service – Category Familiarity • Business selection factors: – Location / proximity – Brand awareness • The criticality of tracking offline consumer behaviors Study Objectives Understand the use and value of on- and offline local search sources such as IYP, Print YP’s and online search. Methodology • comScore panel of 1 million online users • 3,000 consumers completed the survey regarding online and offline Local Search • Results released Q2 2007 Study Results General Survey Study Results Internet is the primary source when combined, while PYPs are the leading stand-alone source for local business information. Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential. Study Results Understanding Consumer Behavior The Purchase Funnel Awareness • Local Search happens near the bottom of the funnel Research & Consideration Intent / Shop – Consumers know the what…now they need to decide on the where. • However, from intent through purchase -consumers are still deciding on where to buy • Local Availability / Price Purchase Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential. Study Results Understanding Consumer Behavior The Purchase Funnel Awareness Local Product Search Research & Consideration Search Engines Intent / Shop Information needs: Website, discounts, promotions, types of payment accepted Selection Factors: Local Selection (1) Brand Familiarity (2) Proximity Purchase Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential. Study Results Understanding Consumer Behavior The Purchase Funnel Awareness Local Service Search Research & Consideration Information needs: Intent / Shop IYPs & Local Local Sites Selection Address, maps, phone number Selection Factors: (1) Proximity (2) Brand Familiarity Purchase Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential. Study Results General Search User Outside of local product based searches, findings indicate that General Search sites are used higher up in the purchase funnel • General search users conduct more than double the amount of searches per session (12.8) than local & IYP site users (5.1). Search Engines IYPs & Local Sites • Users were less likely to have an actual business name in mind prior to search vs. IYP & Local site users. • General search users were less likely to make a purchase post reference than IYP & Local site users. Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential. Study Results Search Success & Satisfaction Based on findings, consumers were 40% more likely to have a successful localized search on an IYP or General Search site. Successful Un-Successful General IYP Local 80% 90% 100% Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential. Study Results Search Success & Satisfaction What happens in the absence of a successful search? Gave up searching for Gave up search info 27% Utilized Print Yellow Pages Utilized Print YP's 24% Used different search Used different search terms query 14% Used aChanged different site search site 11% Asked friend Asked a friend forainfo Choose another search Choose another search resultresult Called DA Called Directory Assistance Other Other 0% 10% Getting your basic To get closer 100% business infotocorrect you need on allows youtotofocus capture local listing 50% of this attributes audience 5% 4% 5% 5% 10% 15% 20% 25% 30% Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential. Study Results Category Details Study Results Category Details 100% 90% 54% 14% 87% 17% 7% 54% 12% IYP 42% 39% 18% 18% 38% 19% 28% Pizza Local 4% 8% Banking & Finance 70% 44% Auto Service 10% 0% 54% Insurance 30% 20% 41% Moving & Storage 60% 50% 40% 32% Home Services 80% 70% General All Local Business Searches Share of Local Business Searches In general, IYP & Local site usage only account for 30% of local search activity. However, usage varies widely by category. Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential. Study Results Category Details – Home Services Usage changes based on consumer awareness of a category Share of Local Business Searches 100% 90% 80% 32% General 19% 40% 15% 14% 50% 49% 14% 17% 36% 34% Pest Control Carpet Cleaning 8% 13% 15% 13% 50% Local 40% 30% 27% 7% 70% 60% 25% 74% 60% 54% 58% 20% 10% 47% IYP 0% Home Services Share of Home Services searches: HVAC 8% Maid Services Plumbing 16% 47% Home Security 8% Source: comScore Networks conducted on behalf of TMP Directional Marketing – Study: The usage and value of on- and offline local search sources, June 2007. Proprietary and Confidential. Search with a Sharper Focus Survey Results The most common activities resulting from the online search were in-store visits and contacting the business via telephone. Survey Results Post Search Primary Source Activity forActivity Local Info Purchase Online Offline Other Media Even traditional media drives offline activity 35% 30% Purchases asas a result of of ads In-store Visit a result ads 30% 25% 30% 28% 20% 21% 18% 15% 17% 10% 5% 7% 0% Newspaper Source: NAA’s Newspaper Engagement Study, NAA July 2006 TV Magazines Radio Other Media Post SearchActivity Activity Primary Source for Local Info Purchase Offline $363.5 Billion Source: Q3 2007 comScore Networks Online $112 Billion Value of Media With so much activity happening offline --How do you ensure you are capturing the full value of your advertising? Tracking Offline Activity Methods of tracking offline activity / conversions 1. Good – Easy to implement, however not precise 2. Better – For marketers who lack the budget / infrastructure for more advanced tracking solutions 3. Best – For the sophisticated marketer Tracking Offline Activity GOOD: A Simple Approach • Make assumptions based on change in sales volume • In-store survey Tracking Offline Activity BETTER: An Intermediate Approach • Test program • Coupon / promotion code program • Pay Per Call • Unique content landing pages specific to traffic source (unique price etc.) • Branch / dealer locator Tracking Offline Activity BEST: An Advanced Approach Compare Online Activity to Offline Purchases • Email List Members • Contact Requests • Website Registrations Tracking Offline Activity BEST: An Advanced Approach Bridging online research with offline purchases • Call Tracking – Sales disposition • Customer Call Back Survey • In-store pick up option Case Study A national home services company was looking to generate additional lead volume at an efficient cost per lead (CPL) and cost per sale (CPS) rate. A desirable CPL target was set at $20 as well as a target CPS of $50. The Results (note: results are from Jan – Dec 2006): oTarget CPL = $20 oTarget CPS = $50 Results measuring online performance only: Results measuring both online and offline performance: Online Leads 4,860 Total Leads (online + phone) Online Sales 1,781 Total Sales (online + phone) 10,377 5,093 CPL: $ 32.97 CPL: $ 15.44 CPS: $ 89.97 CPS: $ 31.46 In Summary Both online and offline tracking is needed to realize the full value of each media, thus assisting in the proper alignment of media mix and investment. Thank You. Stuart McKelvey, CEO - TMP Directional Marketing