Directory Publishers and Mobile Unlocking the Formula for Driving Revenue. Dec. 12, 2012

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1 Directory Publishers and Mobile Unlocking the Formula for Driving Revenue Dec. 12, 2012

2 Welcome Thank you for joining us today Topic at center of discussion today: 73% of directory publishers expect mobile services to be a major part of their business by 2016 (source: BIA/Kelsey and dotmobi) We ll examine: How directory publishers are leveraging the opportunity of the mobile web for themselves and their customers Potential revenue growth How publishers can help small to medium-sized business (SMB) customers market themselves through the mobile channel Michael Boland Senior Analyst, BIA/Kelsey Chris Campbell Director Business Development, dotmobi Chris Folmar Director, Mobile Development, SuperMedia 2

3 US$ Billions The Starting Point: U.S. Mobile Ad Spend $12.00 $10.00 $9.92 $8.00 $8.07 $6.00 $5.97 $4.00 $4.22 $2.00 $1.62 $2.67 $ Note: Numbers are rounded. 3

4 US$ Billions Local vs. National Ad Spend in Mobile $12.00 National Local $10.00 $8.1 $9.9 $8.00 $5.8 $6.0 $4.5 $6.00 $4.2 $3.1 $4.00 $2.00 $0.00 $1.6 $0.7 41% $1.0 $2. 7 $2.1 $1.2 $3.6 $4.1 $2.9 $2.2 $ Note: Numbers are rounded, which affects some of the totals. 58% 4

5 Mobile Local Ad Growth, Reason 1: Mobile Usage 20 percent of overall search volume is mobile 50 percent of mobile searches are local (compared with 20 percent on the desktop) That s almost 2 billion local searches per month. 5

6 Mobile Local Ad Growth, Reason 2: Advertiser Evolution 1. National advertisers evolve to meet local user intent; and to leverage the mobile device s native capabilities LOCATION TARGETING. 2. Mobile moves down market to SMBs Self-serve tools (pull) Sales efforts of local media companies (push). 6

7 Mobile Local Ad Growth, Reason 3: Premium Ads 7

8 Mobile Site Optimization: Before and After 8

9 The Carrot and the Stick for Mobile Websites 9

10 US$ Billions Mobile Local Ad Spend by Format $7,000 $6,000 $292 $182 Display $5,000 Search $4,000 $185 $163 $3,202 SMS Video $3,000 $110 $143 $2,402 $2,000 $1,000 $0 $61 $1,646 $124 $29 $1,145 $101 $2,115 $14 $1,716 $81 $691 $1,185 $390 $725 $180 $ Note: Numbers are rounded. 10

11 SMB Mobile Websites: A Ways to Go 11

12 Directory Publishers Sector Primary Research Findings

13 Directory Publishers and Mobile 73% of respondents indicate mobile will have a major importance in their business Mobile services are not new to major publishers Each of the publishers indicates having some type of mobile-specific offering Services range from app versions of directory listings to full-service mobile website creation Seen as Value Added service rather than standalone offering 13

14 Competitive Environment Google Aggressive moves into mobile search both through the dominant Android smartphone platform and the strength of its search brand in the marketplace Ability to invest heavily in mobile services Location-based check-in services Foursquare, Yelp Niche apps that capture specific market verticals, such as shopkick Facebook not currently viewed as significant competitive threat for any of the directory publisher players interviewed by BIA/Kelsey and dotmobi 14

15 Investing In Mobile Most directory publishers will increase investment in mobile See it as a key way to reduce churn Mobile landing pages/sites complement existing offerings Do not see native apps as realistic for their customers Widely understand that advanced functionality such as m-commerce, reservations and couponing will be important as mobile web usage surges Mobile is an action platform and not a research platform 15

16 Build Versus Buy 90% white-label their mobile website offerings As technology continues to advance and high-end devices penetrate the wider marketplace, more advanced mobile functionality will be required in mobile friendly websites Publishers with the ability to respond to this fast moving marketplace stand to gain a competitive edge Some functionality identified by publishers include QR Codes, mobile commerce, analytics and more advanced design tools to differentiate mobile sites 16

17 Impact on the Current Product Portfolio Directory publishers seeking to enhance their product portfolios to better attract, target and serve the smartphone user population globally. Following mobile features seen as important: Maps Click to call Video Social links Scheduling feature Turn-by-turn directions, offers/deals (couponing) 17

18 Mobile Web = An Opportunity Mobile search will exceed desktop search Mobile search tracks purchase intent and transactions closely The mobile channel works exceedingly well for many verticals, given its user engagement The directory publishing industry is pivoting its product portfolio, sales and infrastructure around the mobile opportunity Presents unique infrastructural and sales distribution challenges Directory publishers engaging in the mobile channel must pursue strategies that meet or exceed the competition s features and user experience; drive user engagement and show advertising performance 18

19 SuperMedia s Mobile Program BIA/Kelsey Case Study Christopher Folmar

20 About me Christopher Folmar, Director of Mobile Development, SuperMedia Joined SuperMedia in 2010 Leads a team of fierce mobile ninjas across various business units Team s work has won multiple industry recognition and awards 20

21 Mobile Program Strategic Overview Mobile platform drives user engagement to increase mobile traffic Mobile Web All internet enabled mobile devices Mobile Apps iphone Android ipad Kindle Mobile Platform Performance Mobile Product Value Mobile Products drive revenue based on monetizing mobile traffic Solution Bundles SEM for Mobile SMS Mobile Websites for Clients Mobile Sponsorships on Superpages Mobile Platforms 21

22 Mobile Advertising is now Integrated mobile into all major solution bundles Includes: SEM Social Listing Claiming Web Mobile web AVO $

23 SuperMedia SEM for Mobile Opt-in to Adwords for Mobile for every SEM campaign Specific campaigns just for targeting mobile High purchase frequency / location specific Restaurants Entertainment 23

24 SMS Trials Consumer Relationship Marketing Offers Reminders Loyalty Programs It takes 90 minutes for the average person to respond to an . It takes 90 seconds for the average person to respond to a text message. Source: CTIA.org 24

25 Mobile Websites for Clients Making the user work to contact you = #FAIL Who is answering the call from a mobile site? Pinch and zoom to see content = #FAIL 25

26 Sponsorships on Superpages Mobile National Client Trial Exclusive Placement Pay for Performance 200% higher CTR than category average AV0 ~$250 per month per client Superpages Mobile Web Superpages Mobile Apps 26

27 5 Easy things a local business can do to be mobile-enabled today 1. Have a very mobile-friendly website 2. Run mobile specific campaign for SEM 3. Use social media frequently & often 4. Always format customer s for mobile devices 5. Use text messaging programs to enhance loyalty programs 27

28 Thanks! #mobilefolms 28

29 New Report Available How are directory publishers worldwide leveraging the opportunity of the mobile web for themselves and their customers? 29

30 BIA/Kelsey Helps Clients Lead In Local Information on the Market Forecasts, SMB Research, Market Data Information on the Competition Competitive Intelligence Innovation & Best Practices Reports, Advisory, Conferences Top Executive Buy-in Concierge Service, Advisory & Custom Research Funding Investment Banking & Mezzanine Funding For more conversation on the mobile opportunity, join us at ILM East, March 18-20, 2013 in Boston, MA. Financial / Strategic Consulting Industry Forecasts, Research Competitive Intelligence Local Market Ad Reports Conferences Inquiries: Steve Passwaiter, or (703)

31 Questions and comments: Michael Boland Chris Campbell Chris Folmar This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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