Local Commerce Monitor UK Wave 2 Executive Summary. October 2013
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1 Local Commerce Monitor UK Wave 2 Executive Summary October 2013
2 Introduction This document defines Local Commerce Monitor UK (LCM: UK) and presents the findings from Wave 2 The LCM: UK survey is an extension of BIA/Kelsey s ongoing Local Commerce Monitor (LCM) survey series, which provides ongoing tracking of small and medium-sized businesses LCM: UK provides a granular snapshot of current media usage, behaviors and conditions in the United Kingdom. Questions and response options for LCM: UK were customized to reflect UK companies, practices, geography and currency. 2
3 Basics of LCM: UK Online survey of SMBs in the United Kingdom about media usage, performance assessments, and the use of mobile, social and loyalty programs by SMBs. Several different metrics to examine results: media penetration, overall ad spend allocation, and spending intensity*. About 300 respondents, consisting of small business in the United Kingdom. Results based on 300 responses have a confidence interval of +/- 5.7% at the 95% confidence level The participating businesses were drawn from a cross-section of the U.K., so as not to be dominated by the greater London area. The same also included a substantial number of solo businesses, with 32% of respondents reporting just one full-time employee in their business (including themselves). 3
4 Waves of Research LCM: UK (Wave 1) completed June 2011 LCM: UK (Wave 2) completed Sept
5 Media in LCM: UK Sponsorships & Giveaways Giveaway items (e.g., mouse pads, key chains, accessories, etc.) Community-based participation or sponsorships (e.g., sports teams, events, cultural or civic groups Broadcast Radio Local cable TV advertising, Local broadcast TV advertising Deals & Coupons Print coupons or coupon books, Online 'Daily Deals' or 'Discount Deals'. (Examples: Groupon, Living Social, Home Run, or similar), Online coupons that are not 'Daily Deals' or 'Discount Deals, Mobile Deals (Deals or coupons only available on smartphones or tablets) Directories Any printed classified directory, Hibu, Other printed YP, Specialised print or online directory for your specific business, industry or location Print/Outdoor Direct Mail, Door hangers, flyers or brochures that are delivered to homes but are not sent by post National Magazines, Newsletters, or trade journals Outdoor advertising such as posters, taxis, or buses Social A blog that is on your business website, or that your business hosts, Twitter, Google (Google+ Local or Google Places), LinkedIn, Facebook page, Facebook Advert, Other social sites Video Video on your own website, hosted on YouTube, Hosted on other site like Vimeo Mobile (smartphone and tablet) Text message marketing, banner/display, search adverts, Apps, enhanced listing or profile, location aware mobile advertising Other Online Online banner ads or display ads (not containing video), marketing, Pay-Per-Click or performance, Online articles of stories that are sponsored, Other online not mentioned 5
6 Data Views ROI assessments of advertising by type Co-op advertising programs Daily deals Customer lists, engagement levels with customers Customer loyalty programs marketing providers Tracking sources of business leads and methods Channels used to purchase media Percentage of budget for digital/online: Last 12 months and next year Online properties, integration and management Primary purpose of Facebook page, use of social media Annual spend on website and online properties, as well as updating Reputation management and monitoring Video production method used Self-Serve features desired in online ad purchase, pricing plan and bundling Other business services would consider purchasing with advertisings Online service purchase preferences - individual or bundle, bundle features Use of CRM Systems, CRM providers, average spend Use of cloud-based services Types of mobile marketing Use of bar codes Point of Sale usage of swiper attached to a smartphone or tablet Use of check-in data and differences by type Business future marketing priorities by channel 6
7 Custom LCM Data Custom views of the data available: Almost any question in the survey Verticals- Entertainment, Professional Services, Technology, Home & Trade, Retail Size of Business Revenue of business Location of business Types of advertising Business use of advertising Year-to-Year comparisons 7
8 Survey Measurements In our LCM surveys, we ask respondents about their spending for more than 30 different media, both print and digital. We use several different metrics to look at the results: 1. Media Penetration: This is the percentage of SMBs that use each particular medium (irrespective of their level of spending). 2. Overall Ad Spend Allocation: This calculation looks at total SMB ad spend, and report how the total was allocated to each of the different media. 3. Spending Intensity: This calculation looks at how much an SMB gives of its total ad budget went to a particular medium. This is a measure of how committed SMBs are to each of the media they actually use. 8
9 LCM: UK Report TOC Executive Summary Media Used For Advertising or Promotion Spending "Pie" All Advertising All Media Spending Intensity - Budget for each media Total Spend (Last 12 months) Spend Intentions (Next 12 months) ROI Assessment of Ad Media Analysis of Ad Cost Effectiveness Use Funds from Co-op Advertising Percent of Advertising Funded by Co-op Likely Run Daily Deal (Next 6 Months) Keep Customer List Assessment of Customer List Offers A Loyalty Program Assessment of Loyalty Programs Operates Customer Loyalty Program 9
10 LCM: UK Report TOC (cont.) Primary Vendor For Marketing Percentage of Business New Customers (Last 12 Months) Percentage of SMBs That Track Customers Sources Method of Tracking Customers Channels Used to Purchase Search Engine Marketing Percent of Ad Budget for Digital (Last 12 Months) Percent of Budget for Digital (Next 12 Months) Online Properties Ways Online Properties Are Integrated Frequency of Updating Online Properties Engagement With Customers Annual Spend on Website And Online Properties Importance of Web Sites With Customer Opinions Video Production Used (Last 12 Months) Primary Use of Facebook Page Vendors Used for Online Property Updates 10
11 LCM: UK Report TOC (cont.) Monitoring Activity of Customer Comments About Business Reputation Monitoring Services Used Monthly Spend on Monitoring of Reviews/Ratings Print Yellow Pages Spend Intentions (Next 12 Months) Channels Used to Purchase Online Advertising Importance of Premises Salesperson For Online Advertising Services Desired For Online Advert Sales Self Serve Features Desired Preferred Type of Online Advertising Plan Other Services Considering Use of CRM Systems Vendors Used For CRM Purchase Online Services Individually or Bundle Bundled Online Services Importance of Features Monthly Spend on CRM Use of Cloud Based Services 11
12 LCM: UK Report TOC (cont.) Type of Mobile Marketing Could Use Use of Bar Codes Usage of Mobile Phone To Handle Payments Participation in 'Check In' Program Ways Customer Check-in Information Used Future Marketing Priorities Budget Covered by Franchisor Franchisor Limits Social Media? Respondent Region #73 Full & Part Time Employees in Business #74 Respondent Primary Business Activity (2) #75 Business Age (Years) #77 Business Lifecycle Stage #78 Business Franchisee or Licensee? #79 Type of Customers #80 Type of Market #81 Annual Revenues of Business #82 Percent of Internet Sales 12
13 Executive Summary Highlights: Media Penetration UK SMBs use a wide variety of media, both traditional and digital, for advertising and marketing. The average UK SMB uses 5.1 different types of media for advertising. Diverse mix of different media being reflected in a comparison of Waves 1 (2011) and 2 (2013) of LCM: UK. In 2013, survey respondents reported using the following media to advertise or promote their businesses: Facebook: 41.3 percent, up from 35.1 percent in 2011 Local newspapers/magazines: 30.7 percent, down from 31.5 percent in percent, down from 33.4 percent in 2011 Twitter: 22.3 percent, up from 18.2 percent in 2011 Online classified directories: 14.0 percent, down from 33.1 percent in 2011 Print classified directories: 11.3 percent, down from 32.1 percent in 2011 Pay per click (PPC): 8.0 percent, down from 13 percent in
14 Executive Summary Highlights: SMB Spend Total annual spend on advertising was reported at 3,296 for the past 12 months; UK SMBs expect modest growth in their advert spend. 52% of SMBs plan on maintaining their spend 30% of SMBs plan on increasing their advertising spend over the next 12 months. 14
15 Executive Summary Highlights: Digital Presence A majority of UK SMBs have a digital presence consisting of Facebook and websites. 42% of SMBs report having a Facebook page, compared to 35% in Over a third of SMBs report that they use their Facebook page to acquire customers or build awareness. 59% of SMBs report having a website, with an additional 16% planning to add one in the next 12 months. 15
16 Executive Summary Highlights: Needs & Intentions SMBs are highly engaged with their customers, monitoring their customers, maintaining lists & loyalty programs. 67% report they frequently or occasionally track sources of leads, usually by low-tech means, such as asking the customer. Clicks and s also rated high for tracking customers. 16
17 Who Should Read this Report? Designed for any business that wants to successfully sell and compete in the UK s marketplace: Local media companies located in the United Kingdom. Commerce companies Solution providers Media companies Mobile and digital companies Ad agencies Anyone with an interest in benchmarking trends in their markets vs. the UK. To purchase, ukinfo@biakelsey.com or call US (703) or UK: +44 (0)
18 Celine Matthiessen Director, Insights and Analysis (469) Contacts Paul Plant Director, UK Development +44 (0) BIA/Kelsey. All Rights Reserved. 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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