New digital divide polachek london
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vSplash’s SMB DigitalScape data indicates that literally millions of SMB websites are not optimized to perform in what is increasingly a “mobile” world. Recent Google data suggests that consumers are quite fickle and their patronage of SMBs will wane if they cannot experience the SMBs digital presence via their Smartphone and tablets.
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New digital divide polachek london
- 1. The New Digital Divide SMBs At Risk Local Social Summit 2012 -‐ 4th Annual, London Exploring the IntersecHon of Local, Social and Mobile Neal Polachek Industry Observer Advisor - vSplash
- 2. A World Of Global “Mobile” ConnecHvity U.S. Smartphone adopHon growth will begin to decline By 2016, 50% of the world will have Internet 1.6B Smartphone unit sales in 2016 Today, 50% of U.S. mobile subscribers are on a Smartphone
- 3. A Widening Canyon "It is dangerously destabilizing to have half the world on the cuYng edge of technology while the other half struggles on the bare edge of survival.” Bill Clinton
- 4. The First “Big Box” Movement – Staples – displaced Campbell Tolstoy staHonary stores – Best Buy – displaced Pacific Stereo electronics stores – Macy’s – displaced Rudnick’s clothing store – CVS – displaced SuperDrugs drug store Why? Scale for buying, technology implementaHon and adverHsing and markeHng drive lower prices
- 5. Current SituaHon • Today, independent businesses face unprecedented compeHHon from larger chain compeHtors, internet merchants and franchises that enjoy naHonal or internaHonal branding power and major economies of scale. As a result, community-‐based businesses comprise a smaller porHon of our economy than ever before. Source: American Independent Business Alliance
- 6. The Next Big Box Event • Aspen Dental – displaces David Freeman, DDS • Your Mechanic – displaces North Bay Motors • Massage Envy – displaces Darlene’s Massage • ServPro – displaces Marshall Plumbing • The Joint – displaces Corsano ChiropracHc Why? Independent SMB is incapacitated by the complexity of digital markeHng, adverHsing and engagement opHons
- 7. The Core Issue Digital SoluHons -‐ Difficult to understand, implement – data driven ROI Confusion FrustraHon TradiHonal Media -‐ Simple to understand and buy -‐ vague ROI
- 8. Market CondiHon -‐ Consumers • Consumers are racing to use SmartPhones and Tablets digital devices – iPads, smartphones, laptops for “discovering and finding” • Consumer experience is subopHmal – too few SMBs have fully funcHoning web presence across digital: – Mobile – Social – Local 2010 2102 2014
- 9. Market CondiHons – Merchants (SMBs) • SMBs are skepHcal of all of the local sales channels – they are all “selling” Media OpHons • Dizzying number of markeHng, media and Media Used commerce providers knocking on the doors of the SMBs • Incapacitated and 2005 2012 2014 overwhelmed by the products and features
- 10. SMBs Not Keeping Pace with Consumers Increasing Gap Paths to SMBs Use by SMBs 2005 2010 2012 2015
- 11. An Widening Canyon Low Medium High Digital Readiness SMBs MulH-‐locaHon NaHonal
- 12. Driving Business Success 41% More Growth Low Web Presence High and Medium Web Presence Source: Boston ConsulHng Group; 2012
- 13. vSplash Overview • A global provider of digital media and commerce soluHons to SMB and local markeHng and commerce aggregators. Directory • Team of 325+ cerHfied resources Publishers, – Managed services and soluHons Newspapers, Radio, Online Pure – Plalorms and tools -‐ BuzzBoard Plays, Local TV, SMB Aggregators – Data and data analyHcs • Producing over 10,000 forms of digital media monthly • FaciliHes in US (New Jersey) and India • Advisors include Neal Polachek and Mark Canon
- 14. SMB DigitalScape ObjecHve Deliver ‘Intelligence on Scale’ based on empirical evidence Build big data about the state of SMB digital development across the SMB value chain: Media Commerce SoluHons Affirm the market opportunity and potenHal of delivering digital services and soluHons to SMBs
- 15. Groups Of Parameters Site • Op3mized for a great user experience and for the search engines and that Metrics my site follows the global standards and best prac3ces Search • Op3mized for being found by the major search engines and I rank high with the search engines Local • Op3mized for local search send right signals to search engines and users that "I am a local business” • Op3mized for engaging with my customers via social media plaCorms that Social consumers use such as Facebook and TwiEer and that consumers are engaged and providing reviews and ra3ngs about my business • Op3mized so that my customers can find me on their smart phones, Mobile tablets and other mobile devices and I offer a compelling mobile user experience
- 16. Today . . . And . . . Tomorrow 2012 2016 • 200+ M SMBs in 50 Countries • 200M +/-‐ SMBs in 50 countries • Global GDP – $20T • Global GDP – $25T • 30% with a “website” • 45% with a “website” • At best 15% func3oning digital • As many as 32% fully presence – or just 10M func3oning digital presence – or nearly 30M Annual Opportunity to Upgrade, Build and Deploy Fully FuncHoning “Webpresence” = $19B
- 17. Data and Data AnalyHcs 20M Businesses Analyzed* 2.1M US Websites Audited $50B of opportunity iden3fied SMB DigitalScape A Global View of How Much Opportunity? $1M -‐$100 M of opportunity iden3fied Market Level Analysis Where is the Opportunity? $3,000 of opportunity Customer Level Leads & Audits Which Specific Customers or Prospects Represent the Biggest Opportunity? * As of Q4 2012
- 18. A Growing Data Set (March v. Aug) 10 4 110 2,016 LisHngs (millions) 100 717 Parameters URLs (000's)
- 19. Quick SegmentaHon Has a Don’t have Don’t have Website No mobile a mobile a mobile built by discoverable opHmized opHmized opHmized brother in-‐ web website and website and website and law’s presence most of the missing at missing nephew’s key least 2 key more than 5 friend for elements elements key high school elements project
- 20. A UK View – All SMBs Raring To Go At the Start 3% Line 8% Outside Looking In 40% Leaving Pit Alley 22% In the Pit 27%
- 21. Diving Deeper into the Data
- 22. Slow Sites Cause Poor UX More Than 60 Seconds 51 To 60 Seconds 41 To 50 Seconds 31 To 40 Seconds 21 To 30 Seconds 40% 11 To 20 Seconds 5 To 10 Seconds 4 to 5 Seconds 3 to 4 Seconds 2 to 3 Seconds 1 to 2 Seconds 60% 0 to 1 Second
- 23. eCommerce – Not Yet 5 eCart No eCart 95
- 24. Many Missing LocaHon in Meta Title 11 Yes No 89
- 25. Most Sites Lack Any Ranking 10 0.0% 9 0.0% 8 0.0% 7 0.3% 6 1.2% 5 3.3% 4 8.9% 3 21.3% 2 22.3% 1 18.8% 0 15.9% unranked 8.1%
- 26. Facebook – PercepHon v. Reality BIAKelsey – LCM 60 Wave 16 50 50 40 30 22 20 10 0 Self Reported Reality
- 27. Few SMBs Able to Leverage Mobility 98%
- 28. So A Widening Canyon "It is dangerously destabilizing to have half the world on the cuYng edge of technology while the other half struggles on the bare edge of survival.” Bill Clinton SMBs are increasingly at risk of being lex behind as consumer adopHon accelerates
- 29. So – Remember The Core Issue Digital SoluHons -‐ Difficult to understand, implement – data driven ROI Confusion FrustraHon TradiHonal Media -‐ Simple to understand and buy -‐ vague ROI
- 30. CompeHHve Map High Cost of Sales Low High Go-‐Daddy Margin 1 to 1 ReachLocal Hibu UK Low Customer Engagement High
- 31. Product Map Low LTV High Low High Margin YP Sched’ing High Churn Websites ID and Social Email & Msgs Mgt OLM SEM SEO Low Deals Acquisi3on Centric Reten3on Centric
- 32. SoluHon Map Low LTV High Low High Margin Sched’ing Email & YP ID and Social Mgt Msgs OLM SEM SEO High Churn Deals Websites Low Acquisi3on Centric Reten3on Centric
- 33. Channel ImplicaHons Low LTV High Low High Margin VerHcal Centric Sales Channel High Churn UndifferenHated Sales Channel Low Acquisi3on Centric Reten3on Centric
- 34. Shix From Media to SoluHons -‐ ARPU 2002 2008 2012 2016 6000 5000 4000 2500 3000 250 Service 1000 Media 2000 3500 2500 2500 2000 1000 0 Print YP Print YP + IYP PYP + IYP + PYP + IYP + Digital Products Digital SoluHons
- 35. Minimal Limited Best Prac3ces SMB ParHcipaHon and Spending SMB Digital Readiness -‐ 2012
- 36. Minimal Limited Best Prac3ces SMB ParHcipaHon and Spending SMB Digital Readiness -‐ 2016
- 37. Summarizing Consumer adopHon of digital engagement is far out pacing SMB transformaHon Paradox of choice – incapacitated to make a choice The local merchant DID NOT choose XYZ line of business to be a digital markeHng guru – they chose to be an XYZ guru Someone has to raise the “trust” factor and build soluHons not products which will lead to a more sustainable and profitable customer relaHonships
- 38. Thank You nbpolachek@gmail.com umesh@vsplash.com anthony@vsplash.com