2014 Local Business Search Study

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1 2014 Local Business Search Study Prepared by comscore, Inc. comscore, Inc. Proprietary.

2 Agenda 1.Introduction and Methodology 2.Each Device Plays a Different Role in Local Search Tried and true, the PC/Laptop s role in local search is stable. It is a tool for in-depth research. Mobile phones fulfill a need for immediate gratification while searchers are on the go. They require high level information that will get potential clients in contact with the business. Tablets are a source for early-search-stage business comparison and casual browsing after work hours. 3.Different Sites Have Different Roles in the Search Ecosystem Users searching on Portal Sites have high expectations of finding a business website regardless of whether they are searching for an independent or branded business. IYP Sites are used as a source for high level business information and as a source for interacting with independent businesses. Local Sites primary function is to provide map based information. 4.Searchers Interact with Different Categories of Business in Unique Ways Local businesses should base marketing efforts off of the type of devices used to search for their category of business, and the time of day these devices get used. 5.Navigation Systems Get Customers to Brick-and-Mortar Stores with Little Error GPS Ownership has increased 5 percentage points over the past year, driven by increased smartphone penetration. comscore, Inc. Proprietary. 2

3 Introduction & Background comscore analyzed the behavior, attitudes, and intentions of online local business searchers. Study Design: Overall study design leverages both a quantitative survey and behavioral data from comscore s U.S consumer panel. - Survey Design: The survey study consists of a targeted sample of over 4,000 users of local business Internet searchers, broken into 3 search categories: Internet Yellow Pages, Local Search Sites, and Portal Search Sites. - Behavioral Data: comscore provides additional analysis of total web search activity, local web search activity, and local mobile content consumption. comscore, Inc. Proprietary. 3

4 comscore 2 Million Person Global Panel Comprehensive View of Digital Consumer Behavior Online Advertising Website and App Usage Video PC TV Gaming Server E-Commerce Search Smart phone POS Tablet Online Behavioral Profiles Demo- graphic Profiles comscore, Inc. Proprietary. V0113 4

5 Survey Methodology Objectives comscore, in conjunction with 15 Miles and Neustar Localeze, designed on online survey instrument that focused on understanding the behaviors of online local business searchers. Respondents The target respondents were individuals who have conducted a local business search in the last twelve months. comscore surveyed panel members and the general population via and POP invitations. 4,887 completed responses were collected. Respondents were categorized based on the site they used for their last online business search, and weighted on age, gender, and last site used to conduct a local business search. Total Offline Yellow Page Sites Local Search Sites Portal Sites Research Design Sample Size Category Definition 4, ,395 2,658 Do not search for local businesses online SuperPages.com Yellowpages.com (YP.com) DexKnows.com Yellowbook.com Local.com Google Local/Maps Yahoo! Local Bing Local Citysearch.com City.Ask.com/ Maps.Ask.com Mapquest.com Yelp.com Google.com Yahoo.com MSN.com/ Bing.com AOL.com Ask.com Timing The survey was fielded December 13 th, 2013 December 23 rd, comscore, Inc. Proprietary. 5

6 Each Device Plays a Different Role in Local Search comscore, Inc. Proprietary.

7 The mobile phone and tablet audience represents a growing population with high likelihood of exposure to on-device local search. MobiLens TabLens U.S. Total Device Owners +24% YoY Share of Device Owners that use Device for Local Search +60% YoY PC/Laptop Mobile Phone Tablet Source: comscore MobiLens,Tablens, 15miles/Neustar Localeze Local Search Usage Study How often would you say you search for local business information using each of the following comscore, Inc. Proprietary. devices? 7

8 As mobile phone and tablet owners gain more experience searching on-device they are less satisfied. There is an opportunity for improving their experience. Satisfaction with Local Search on Device of those who use each device Understanding what drives mobile phone and tablet search is the key to improving satisfaction. Using a 7-point scale where 1 is Extremely dissatisfied and 7 is Extremely satisfied, please comscore, Inc. Proprietary. indicate your satisfaction with searching for local business information on the below device(s). 8

9 Mobile phone and tablet search is driven by a need for information on the go. Low price points influence their penetration and competitive edge over PCs. Reasons for Using Device for Local Search of those who use each device Mobile Phone increased 4 pts Y/Y Tablet increased 6 pts Y/Y Why do you use the below device(s) to get local business information? Please select all that apply comscore, Inc. Proprietary. 9

10 Mobile phone and tablet searchers place the same level of importance on depth of information as PC/Laptop searchers. Importance of Depth of Information by Device % that claim it is important, top 2 on a 7 pt scale of those who use each device -7 pts -2 pts Using a 7-point scale where 1 is Not at all important and 7 is Very important, please indicate how comscore, Inc. Proprietary. important the following are in your search for local business information on your mobile phone. 10

11 Make address/directions easy to find to satisfy mobile phone searchers. Give tablet searchers the information needed to compare you to your competitors. Primary Information Sought on Local Search based on last local search Source: comscore custom research - 15miles/Localeze Local Search Usage Study During your last search on what was your primary goal? What were your secondary goals for comscore, Inc. Proprietary. searching on the site? 11

12 The majority of mobile searchers believe mobile site design is important. Sites must provide easy access to the information that searchers demand. Full Site Mobile Design Mobile App of those who search locally on their mobile phone believe mobile site design is important How important it is that local businesses offer mobile optimized versions of their website. comscore, Inc. Proprietary. 12

13 Half of all mobile phone searchers know what they re looking for, requiring quick information that connects them with their business of choice. Typical Search Situation by Device of those who use each device When searching for local business information on the following device(s), which of the statements best comscore, Inc. Proprietary. describes your typical situation? 13

14 A 9 point lift in tablet searchers using this device at the beginning of their search indicates tablets are becoming a tool for comparative research. Stage of Local Search by Device of those who use each device PC/Laptop Mobile Phone Tablet Source: comscore custom research - 15miles/Localeze Local Search Usage Study Generally, at what point in your search for local business information do you use the below device(s)? comscore, Inc. Proprietary. 14

15 Tablet search function could be influenced by time. 44% of tablet traffic occurs after 5PM, when users are less able to reach brick-and-mortar stores. Device Essentials Share of Device Traffic by Time of Day Working Hours comscore, Inc. Proprietary. Source: comscore Device Essentials September

16 Compared to other devices, mobile phones have the highest conversion rate. Nearly 80% of mobile phone searches end in a purchase. % of Searches that Resulted in a Purchase based on last local search Share of tablet searches that end in a purchase decreases as its search function becomes comparative in nature. Did you make a purchase from the local business? comscore, Inc. Proprietary. 16

17 Nearly 3 out of every 4 mobile phone searches that end in a purchase bring customers into brick-and-mortar stores. Location of Purchase based on last local search, of those who made a purchase Did you make a purchase from the local business? comscore, Inc. Proprietary. 17

18 3 out of 5 PC/Laptop and mobile phone searches that end in a purchase are made within a few hours of the research process. Time Between Research and Purchase based on last local search, of those who made a purchase Within a few hours A day A few days A week or more 7% 6% 6% 20% 19% 22% 14% 13% 27% 60% 63% 45% PC/Laptop Mobile Phone Tablet How much time passed between when you finished researching the local business online and when comscore, Inc. Proprietary. you made your final purchase? (Don t Know removed from base) 18

19 Different Sites Have Different Roles in the Search Ecosystem comscore, Inc. Proprietary.

20 Searchers know to go to IYP Sites for high level information (telephone numbers, addresses) and Local Sites for maps/directions. Expected Business Information Available on Site based on last local search comscore, Inc. Proprietary. What information do you expect to find when searching for local businesses online? 20

21 Nearly 1 in 5 searches made on Local Sites are from a mobile phone, putting them in touch with brick-and-mortar stores. Device Used for Local Search based on last local search From what device did you do your last online local business information search? comscore, Inc. Proprietary. 21

22 Compared to 2012, larger share of IYP searches are made on the go. Searchers recognize they demand high level information in this scenario. Location of Local Search based on last local search Up 3 points from 2012 From where did you do your last online local business information search? comscore, Inc. Proprietary. 22

23 IYP offers a unique insight into local businesses. As such, it has the highest share of searches for independent businesses. Branded vs. Independent Local Business Searches based on last local search Size of business is not an excuse for lack of Portal presence. 50% of independent business searchers and 49% of branded business searchers on Portal Sites expect to find the businesses website In your last search on were you looking for an independent local business or a branded business? comscore, Inc. Proprietary. 23

24 Share of searches that end in a purchase has capped out at 64% for IYP and Local Sites. Portal Sites are still catching up to this rate. Share of Searches Ending in a Purchase based on last local search Did you make a purchase from the local business? comscore, Inc. Proprietary. 24

25 Searchers Interact with Different Categories of Business in Unique Ways comscore, Inc. Proprietary.

26 Restaurants and shops were the most common local search categories. Top search categories remain consistent over the past year. Category of Local Search based on last local search 23% 23% Shops 22% 22% Services 20% 19% Health/Fitness 10% 10% Entertainment 7% 10% Financial 5% 5% Travel 5% 3% comscore, Inc. Proprietary. Please select what type of business you were looking for during your last local business search at <<INSERT 2>>? 26

27 Each device has a skew in category of local search. Businesses should consider what device appeals to their audience when marketing. Category of Local Search based on last local search From what device did you do your last online local business information search? comscore, Inc. Proprietary. 27

28 Device Time of Use and Category of Search Suggests to Advertise On During PC/Laptops Work Hours Entertainment Restaurants Mobile Phones The Evening Health & Fitness Tablets The Evening comscore, Inc. Proprietary. 28

29 Marketing efforts that drive health & fitness, restaurant, and financial consumers is impactful as they tend to search with a specific business in mind. % of Local Searches for a Specific Business based on last local search comscore, Inc. Proprietary. In your last search on <<INSERT2>> did you have a specific local business in mind? 29

30 Use of Maps in Local Search comscore, Inc. Proprietary.

31 Ownership of navigation systems has significantly increased since 2012, primarily driven by an increase in mobile phone based GPS. GPS Ownership How often do you use a navigation system? What type of a navigation system do you use? comscore, Inc. Proprietary. (Other not shown) 31

32 40% of GPS owners have never encountered an error, meaning overall this device is successful at getting potential customers where they need to be. Share of GPS Owners Encountering Issues comscore, Inc. Proprietary. Have you experienced any of the following when using your navigation system? Please select all that apply. 32

33 The GPS issue most likely to prevent a customer from reaching a brick-andmortar store is poor or wrong routing directions. Share of Searches Ending in a Purchase based on those who have encountered errors Which one of the following navigation system errors do you encounter most frequently? Which error impacts your comscore, Inc. Proprietary. experience the most?. 33

34 GPS devices could go above and beyond by offering hours of information in addition to the business name, address, and telephone number. Most Important Information to be Shown on Maps When clicking, touching, or hovering over search results shown on a map, which pieces of information comscore, Inc. Proprietary. are the most important? Please choose your top three excluding name, address, and phone number. 34

35 In Conclusion comscore, Inc. Proprietary.

36 Each Device Plays a Different Role in Local Search Use PC/Laptops for local search because it s easy 60% PC/Laptops are a tool for in depth research. Tried and true, PC/Laptop search satisfaction is high and stable at 64%. Mobile phone searchers need information on the go 65% Mobile Phones are used by searchers who know what they want and fast. 51% are looking for information on a specific business, product or service. 78% of searches end in a purchase, most occur within hours. Time spent on tablets occurs after 5 PM 44% Tablet searchers compare businesses, sometimes casually after work. 1 in 5 searches were to identify a business with the products and services needed. Comparative information needs to be concise, depth is less desired. comscore, Inc. Proprietary. 36

37 Each Site Has a Different Role in the Search Ecosystem Portal searchers expect to find local businesses website 53% Portal searchers expect a variety of information for in-depth research. 85% of Portal searches occur on PC/Laptops It is important that businesses make their websites easy to find, regardless of size. IYP searchers have high expectations of finding business telephone numbers 67% High level business information is demanded by IYP searchers. 11% of IYP searches are on the go, up 3 points from Independent businesses account for 66% of searches on IYP sites. Local searchers expect maps and directions to be available on site 70% Local Sites help get consumers where they need to be. 1 in 5 Local searchers are made from a mobile phone. 64% of Local searches end in a purchase. comscore, Inc. Proprietary. 37

38 Questions? Danielle Zazula Director, CMS Chelsea Heltai Senior Analyst comscore, Inc. Proprietary.

39 Appendix comscore, Inc. Proprietary.

40 Total Web Searches (Billions) qsearch PC based searches decreased slightly year-over-year, driven by a decline in search on non-search engine websites. Change Year- Over-Year Non-Search Engines Search Engines % % Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec comscore, Inc. Proprietary. Source: comscore qsearch 2.0 Total US Internet Searchers 40

41 Device Information comscore, Inc. Proprietary. 41

42 Age Profile by Device Ownership MyMetrix MobiLens TabLens Tablet owners over-index on being between the age of This demographic skew is not sustainable, as individuals over 45 increased their share tablet owners over the past year. Mobile Phone Tablet comscore, Inc. Proprietary. Source: comscore MyMetrix, MobiLens, and Tablens 42

43 Household Income by Device Ownership MyMetrix MobiLens TabLens Tablet owners remain from a relatively high income bracket, however individuals from households with incomes below $50K have increased in tablet share. Mobile Phone Tablet comscore, Inc. Proprietary. Source: comscore MyMetrix, MobiLens, and Tablens 43

44 % That Use Apps for Local Search Most mobile phone and tablet searchers use apps to interact with local content. This is steady year over year. From what device did you do your last online local business information search? comscore, Inc. Proprietary. What is your age? 44

45 Last Online Local Search: Device Used By Age Group Younger generations are more likely to utilize on-the-go devices compared to older generations who are more likely to use their PCs/Laptops. Base: Device owners who made local business information searches=4,437 From what device did you do your last online local business information search? comscore, Inc. Proprietary. What is your age? 45

46 Last Online Local Search: Purchase Location Nearly 3 out of every 4 mobile phone searches that end in a purchase bring customers into brick-and-mortar stores. PC/Laptop Mobile Phone Tablet Did you make a purchase from the local business? comscore, Inc. Proprietary. 46

47 Site Information comscore, Inc. Proprietary. 47

48 Primary Source for Local Business Information Portal Sites are increasingly the most popular source used to search for local businesses with a 7 point increase since last year. Pt. Δ since In general, what is the first thing you use when searching for local business information? comscore, Inc. Proprietary. 48

49 Total PC Visitors to IYP Sites (Millions) MyMetrix Monthly visitors to IYP sites has declined over the past year, with visitation to YellowPages.com holding up the IYP category. -21% Jan-Dec comscore, Inc. Proprietary. Source: comscore Media Metrix U.S., Jan 2013 Dec

50 Total Visitors to Search/Navigation Sites (Millions) MyMetrix MP Throughout 2013, more have started using a multi-platform approach of interacting with search and navigation sites % % % Mobile Only % 12% Multi-Platform % Desktop Only % 13% % % 4% Change Feb - Nov 35% 29% 36% 38% 39% 39% 38% 40% 38% 39% 54% 55% 52% 50% 50% 49% 47% 48% 50% 49% Feb-2013 Mar-2013 Apr-2013 May-2013 Jun-2013 Jul-2013 Aug-2013 Sep-2013 Oct-2013 Nov-2013 comscore, Inc. Proprietary. Source: comscore Media Metrix Multi-Platform, U.S., Feb-2013 Nov

51 Last Online Local Search: Device Used Nearly 1-in-5 searches made on Local Sites are from a mobile phone, putting them in touch with brick-and-mortar stores. IYP has the highest share of tablets. Portal Sites IYP Sites Local Sites From what device did you do your last online local business information search? comscore, Inc. Proprietary. 51

52 Last Online Local Search: Satisfaction with Search Satisfaction with local search has historically been high. Portal Sites display the highest satisfaction rating in pt. Scale, Top 2 Box, % Satisfied 85% 82% 78% Base: Respondents who search for local businesses online; 2010=4,046, 2011=3,293, 2012=2,883, 2013=4,557 significance is at a 90% confidence level Overall, how satisfied were you with the business information provided on <<site>>? (Top 2 Box) comscore, Inc. Proprietary. 52

53 Last Online Local Search: Location & Amount of Purchase High Spenders are more likely to call or use the local business s website to make purchases whereas Medium and Low Spenders are more likely to visit the store in person. More than $90 Spent on Transaction $40 - $89 Spent on Transaction Less than $40 Spent on Transaction Base: Respondents who made a purchase from local business=1,846 Did you make a purchase from the local business? comscore, Inc. Proprietary. How much did you spend on your purchase? 53

54 Yelp Result Choice Most Yelp searchers select natural results. Yelp ads are used more frequently than ad search results or Google ads on Yelp. Base: Respondents who use Yelp=434 When searching for local businesses on Yelp.com, which results do you select? Which results do you comscore, Inc. Proprietary. select the most frequently? 54

55 Category Information comscore, Inc. Proprietary. 55

56 Last Online Local Search: Time Between Research and Purchase by Category The purchase funnel is shorter among lower cost and immediate gratification categories (entertainment, restaurants), while more risky purchases take a bit longer (financial). Base: Respondents looking for a specific local business in last search=2,240 How much time passed between when you finished researching the local business online and when you made your final comscore, Inc. Proprietary. purchase? 56

57 Last Online Local Search: Independent or Local Business? Those searching within the services category were most likely to be searching for an independent business. Financial business searchers skewed towards branded businesses. comscore, Inc. Proprietary. In your last search on <<INSERT2>> were you looking for an independent local business or a branded business? 57

58 Last Online Local Search: Search Method Restaurants were the most likely to be searched for with a business name, while those searching within the entertainment category were the most likely to use general terms. comscore, Inc. Proprietary. In your last search at <<INSERT2>>, how did you start to search for your results? 58

59 Last Online Local Search: Where it was Conducted Searchers looking for financial institutions were the most likely to conduct their search on the go. From where did you do your last online local business information search? comscore, Inc. Proprietary. 59

60 Last Online Local Search: Device Used Entertainment searchers were the most likely to be searching from a PC/ Laptop, while financial searchers were the most likely to be using a mobile phone or tablet From what device did you do your last online local business information search? comscore, Inc. Proprietary. 60

61 Last Online Local Search: First Time Customers Nearly half of all service, restaurant, and travel searchers were looking for a business they have never made a purchase from before. Note: First time customers are those who have never made a purchase, regardless of store visitation or awareness Were you a new or existing customer to the business you were searching for? comscore, Inc. Proprietary. 61

62 Last Online Local Search: % That Made Purchase Over half of all searches ended with a purchase. Compared to all other categories of searches, entertainment searches were significantly more likely to end in a purchase. Did you make a purchase from the local business? comscore, Inc. Proprietary. 62

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