State of Local Business Search
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1 State of Local Business Search July 20, 2011 Christy Randall, Senior Analyst, comscore, Inc. Natalie Wuchenich, Director, Research, Local Search Association *Please Note: We will be sending all attendees a copy of today s presentation within hours.
2 Our Presenters Christy Randall Senior Analyst comscore, Inc. Natalie Wuchenich Director, Research Local Search Association 2
3 comscore is a Trusted Partner in the IYP/Local and Local Portal Spheres 3
4 comscore Customer Knowledge Platform: A granular 360 view of the multitude of online activities for 2 million global users Designed to be representative of the total online population. 4 TRUSTe certified for information privacy & security.
5 Local Search Association Largest trade organization of print, digital, mobile and social media that help local businesses get found and selected by ready-to-buy consumers Members include U.S. and international Yellow Pages companies, search engine marketers, online listings and review sites, digital advertising agencies and mobile search providers Members in 29 countries. 5 5
6 comscore Search Methodology: General Search WHAT IS A SEARCH? Definition: User interaction where the user is presented with a search result page The search result page allows the user to refine or change search parameters The search can be initiated from a drop-down or link as long as the previous two criteria are met EXCLUDED from ALL SEARCH: Location refinements for the SAME search term Expanding search radius Detail pages of search Powered by other search engines without traffic assignment letters 6
7 comscore US Search Methodology: IYP/LOCAL Search WHAT IS AN IYP/LOCAL SEARCH? Definition: Business directory searches on internet yellow pages sites (traditionally two-box search) Included IYP Sites AOL Local Bing Maps Switchboard.com Yelp.com AOL Yellowpages Bing Yellowpages Yahoo! Local Citysearch.com Mapquest Dexknows.com Yahoo! Maps Addresses.com Yellowpages.com Business.com Yellowbook.com Kudzu/com Google Maps Local.com Businessfind.com Areaguides.net Bing Local Superpages.com Localpages.com Ypeek.com EXCLUDED from IYP/LOCAL SEARCH: Maps, Driving Directions, Whitepages listings (people searches) 7
8 comscore US Search Methodology: Local Portal Search WHAT IS A LOCAL PORTAL SEARCH? Definition: Search with local intent on a portal site (traditionally one-box search) Methodology: 1. comscore upholds a rolling three month dictionary of local search listing identifiers from the top portal sites, i.e. Local results for XX near XX. 2. This local identifier dictionary is applied across all collected web search. 3. Any web searches including a local listing identifier are flagged as local searches for the given reporting period (month, quarter, year). 8
9 For Today s Discussion Local Business Search Overview Drivers of Local Business Searchers Deal of the Day and Couponing 9
10 For Today s Discussion Local Business Search Overview Drivers of Local Business Searchers Deal of the Day and Couponing 10
11 Web Searches (Millions) Web Searches (Millions) Search activity continues to rise across the board. Local search now accounts for 13% of core search activity on the top portals. Total monthly web searches grew 22% year-over-year to exceed 18.5B in January 2011; Local Portal Search kept up the speed, increasing 16% to 2.3B. IYP/Local s 5% growth rate was on par with the upward trend seen in local portal searches. Local Search composed 13% percent of Core web searches on the top 5 portals. 20,000 15,000 14,331 15,167 Total, Local and IYP Searches (MM) 18,555 YoY Growth +22% 10,000 Total Web Searches (Core Search*) Local Web Searches (Core Search*) 5, ,833 2,018 2, % IYP/Local Searches +5% *Total Web Search is based on the five major search engines. Searches for mapping, local directory, and user-generated video sites that are not on the core domain of the five search engines are not included in the core search numbers 11
12 Online IYP local search continues to show healthy annual growth, expanding the search base by nearly 2 billion searches since General web searches in 2010 saw 16% growth over 2009, slower growth than that which was observed from 2008 to 2009 (+89%). IYP searches growth rate bounced back in 2010, growing 15% YoY compared with 2% from 2008 to Annual Total Web Searches (Measured Jan Dec) Search Type General Web Searches Local Web Searches IYP/Local Searches Y/Y % Change 113.1B 136.8B 257.7B 299.2B +16% 9.9B 15.7B 22.8B 25.1B +10% 3.8B 4.7B 4.8B 5.6B +15% General Web Search: qsearch Media Trends Local Web Searches and IYP/ Local Searches: qsearch Monthly Combo 12
13 % of Total US Mobile Users Mobile search continues to grow in overall usage and frequency 100% 75% 50% 25% 0% Mobile Search Access Y/Y Growth 16% 22% +38% 1-3 times throughout the month At least once each week Almost every day 43% 37% 20% Y/Y Change -10% +4% +20% As mobile search usage grows, users show an increased affinity to access every day. 88% of mobile search users are accessing on a GPS capable device. Mobile Search Users Source: comscore Mobilens U.S, Jan'11 13
14 Consumer need for local content + GPS capabilities is evident in their behavior million mobile subscribers access local content on a mobile device, up 34% from a year ago. Local content users now account for 33% of mobile subscribers. 87% of local content users have a GPS-capable handset. Total % Reach of Accessing Local Content Total Mobile Subscribers Accessing Local Content % of Local Content Users with GPS Capability January 2010 January 2011 January 2010 January 2011 Y/Y Growth January 2010 January % 33% 57,595,572 77,065, % 76% 87% Local Content includes usage of: Business Directories, Classifieds, Maps, Movie Information, News, Online Retail, Real Estate Listings, Restaurant Information, Traffic Reports, Weather Source: comscore Mobilens U.S, Jan'11 14
15 Search & location is part and parcel of mobile experience. Local content dominates core mobile usage behaviors, driven by usage of Weather and Maps. Local Content Number of Mobile Subs % of Mobile Subs Y/Y Growth Accessed Business Directories 19,576,546 8% 26% Accessed Classifieds 17,801,977 8% 51% Accessed Maps 42,307,485 18% 41% Accessed Movie Information 26,917,120 12% 32% Accessed News 41,489,032 18% 35% Accessed Online Retail 15,944,647 7% 50% Accessed Real Estate Listings 9,932,161 4% 31% Accessed Restaurant Info 23,841,736 10% 40% Accessed Traffic Reports 20,290,818 9% 30% Accessed Weather 60,965,480 26% 41% Source: comscore Mobilens U.S, Jan'11 15
16 Access of local content via application is on the incline. Browsers lead in usage of local content; however, application usage has grown 34% over the course of the year. Local Content Usage Jan 2010 Jan 2011 Y/Y % Growth Total Local Content 57,595,572 77,065,428 34% % Local Content via Application 42% 56% 34% % Local Content via Browser 75% 73% -3% % Local Content via SMS* 30% 25% -14% *Excludes mobile-to-mobile SMS Source: comscore Mobilens U.S, Jan'11 16
17 For Today s Discussion Local Business Search Overview Drivers of Local Business Searchers Deal of the Day and Couponing 17
18 (Searches, in Millions) Total IYP/Local search has grown 5% year-over-year to 434 million searches in Jan 11 Growth is contributed predominately to Google Maps but pure-plays have also seen growth. IYP Search: Year over Year Searches by IYP Property M 2 390M M 444M M M 510M M M M 3 471M 445M M Citysearch.Com Other** Mapquest (AOL) Bing Maps & Local Yahoo! Local Network Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 IYP Pure-Plays* Google Maps Source: qsearch Monthly Combo **A list of Other Sites can be found in the Appendix 18 *For the purposes of this slide IYP Pureplays include: AT&T Interactive, Inc, DexKnows, Superpages and Yellowbook
19 Local Business Search Survey: Search Site Usage IYP Sites: DexKnows Superpages Yellow Book Yellowpages.com Portal Sites: AOL Bing Google Yahoo Local Search Sites: Aol Local Bing Maps Bing Local Google Maps Yahoo! Local Yahoo! Maps Other Sites: Citysearch Craigslist Facebook Local.com Local Pages Whitepages Yelp Other Category Directory Other Mapping Sites Other Social Networking Site Other Primary Search Site 10% 7% 9% 74% Secondary Search Site 46% 37% 32% 23% IYP Portal Local Search Other 18% Portal Other Local Search IYP None Source: Local Business Survey March 2011 (n=2012) 19
20 Those who chose IYP sites first are significantly more likely to do so because of brand recognition and reputation, whereas other search site users are driven by site attributes (e.g. maps, reviews, and photos) and convenience (e.g. toolbars and set homepages). Reason for Choosing Primary Search Site IYP All Other Sites Speed/ Accuracy 58% 56% Brand Recognition/ Reputation 58% 44% Site Attributes 27% 40% Convenience 18% 65% Indicates a significant difference between IYP and all other sites at the 90% confidence level Source: Local Business Survey March 2011 (n=2012) 20
21 Those who chose IYP sites first are more likely to do so because of brand recognition and reputation where as other search site users are driven by the convenience of toolbars and set homepages. Reason for Choosing Primary Search Site IYP* All Other Sites Speed/ Accuracy It provides accurate results It provides the most results 25% 37% 29% 34% It provides the fastest results 21% 30% I use it offline (i.e. print, on my phone, etc.) 15% 6% Brand Recognition/ Reputation It is the most popular site for local business information I saw advertisements for it I know it has the information about businesses I am searching for 10% 13% 31% 6% 14% 24% It has a good reputation for local business information 30% 23% Site Attributes It includes directions/maps in addition to business information It includes photos in addition to business information It includes user reviews in addition to business information 6% 5% 22% 13% 15% 31% It is the first place I search for any type of information online 15% 43% Convenience It is the search toolbar on my computer It is my homepage 2% 2% 23% 24% Indicates a significant difference between IYP and all other sites at the 90% confidence level *For the purposes of this analysis, IYP includes Dexknows.com, Superpages.com, Yellowbook.com, and Yellowpages.com Source: Local Business Survey March 2011 (n=2012) 21
22 Top search terms for the IYPs are typically branded in nature. Of portal search-referred traffic, Google contributes the largest share (53%). Top search terms are usually branded. Top Paid & Organic Term: Yellow Pages Ask, 2% AOL, 1% Top Search Term: Superpages Bing, 19% Yahoo!, 25% Google, 53% Top Paid & Organic Term: Dex Top Paid & Organic Term: Yellow Pages Source: comscore Marketer, February Pie chart represents portal share of search clicks among the 4 IYPs. 22
23 IYP sites are more likely to be added as a secondary search source for local businesses when someone is looking for accurate information or plans to make a purchase. IYP-primary searchers use portal sites as a secondary source when they want to see reviews in addition to information. Reasons for Use of Secondary Site When I cannot find the information I am looking for from the first source Portal secondary (IYP Primary) 51% IYP secondary (Portal Primary) 48% When I want general information 37% 32% When I want to see reviews in addition to information 26% 17% When I want detailed information 26% 28% When I need quick information and I know I will find what I am looking for right away 24% 33% When I want to see a map in addition to information 23% 24% When I plan to make a purchase after finding the information 10% 20% When I want the most accurate information 9% 24% Indicates a significant difference between IYP and Portal sites at the 90% confidence level Source: Local Business Survey March 2011 (n=2012) 23
24 IYP-primary users search significantly more to find local business contact information, while all other site users search significantly more in order to gather research and find directions. Reason for Search 22% 29% Find address/directions Find contact information 41% 28% Purchase product/service 8% 18% 12% IYP 8% 17% 17% 1% All Others Find company that offers specific product/service Gather research Other Indicates a significant difference between IYP and Portal sites at the 90% confidence level 24 Base: Total Respondents (IYP n=175, All Others n=1837). SEARCH6: When you search for local business information online, what is the most common reason for your search?
25 For Today s Discussion Local Business Search Overview Drivers of Local Business Searchers Deal of the Day and Couponing 25
26 Unique Visitors (000) Online consumers are increasingly engaged with deal-a-day sites, but there are a lot of players (200+) and a lot of overlap. 14,000 12,000 11,513 10,000 25% also visited Groupon.com 8,000 7,050 6,000 4,000 2,000 GROUPON.COM LIVINGSOCIAL.COM 0 Source: comscore Media Metrix, March
27 There is an opportunity for IYPs as IYP searchers are less likely to have purchased a coupon. Purchase Coupons Type of Business Coupon Was Purchased For Yes No IYP Others 73% 27% IYP 62% 38% Others Restaurant Retail Store Museum/Tourist Attraction Movie Theater Specialty Store Grocery Store Outoor Excursion Hotel Gas Station Bar/Club Vacation Household Service Other 0% 0% 3% 6% 9% 5% 4% 9% 10% 9% 18% 13% 17% 12% 17% 12% 13% 12% 11% 19% 20% 24% 28% 33% Other includes: Beauty/spa/salon Movie rentals Florist 50% 57% Indicates a significant difference between IYP sites and all other sites at the 90% confidence level Source: Local Business Survey March 2011 (n=2012) 27
28 Coupon purchasers are overwhelmingly satisfied and most are repeat customers. Satisfaction with Online Coupons 1% Repeat Customer - Total - Satisfied Neutral Dissatisfied 29% No 21% 70% Yes 79% Total Local Business Searchers Source: Local Business Survey March 2011 (n=2012) 28
29 So What?! State of IYP Takeaways Online Search growth continues to positively impact local portals, local search sites, and IYP pure-plays alike. So Mobile ads and location-based services offer an opportunity for local businesses to interact with potential customers like never before and IYPs are in a great position to help them realize this potential. IYP visitors are brand-aware, with the biggest search term driving visitors to the IYP sites (from portals) typically being branded. IYP searchers are more likely to use an IYP site due to brand recognition and reputation. While portals account for a large portion of local business search activity, portal usage is driven by its position as a web entry point. Demographically search users tend to be homogeneous and satisfaction by all channels is high. Portal searchers were more likely to conduct local searches as part of broad information gathering, primary IYP searchers reported conducting local searches looking for contact information with specific products or services in mind. Usage of Daily Deal sites and couponing shows high repeat customer rates for local businesses. 29
30 Thank you. Christy Randall Senior Analyst, comscore Marketing Solutions comscore Inc Democracy Drive, Ste. 600 Reston, VA NASDAQ: SCOR Natalie Wuchenich Research Director, Local Search Association Local Search Association Connell Corporate Park 400 Connell Drive, Ste Berkeley Heights, NJ
31 Appendix 31
32 Appendix Other Local Portal Site Definitions Other Local Portal Sites included in Local Searches Share Include (slide 5): AMERICAN AIRLINE, AMAZON SITES, CAREERBUILDER LLC, CBS INTERACTIVE, COMCAST CORPORATION, CRAIGSLIST, INC., DELTA AIRLINES, DISNEY ONLINE, DST, EBAY, EXPEDIA INC, FACEBOOK.COM, FOX INTERACTIVE MEDIA, FRIENDSTER.COM, INDEED, INFOSPACE NETWORK, KAYAK.COM NETWORK, LINKEDIN.COM, LYCOS SITES, MATCH.COM SITES, MAIL.RU GROUP, MONSTER, INC., ORBITZ WORLDWIDE, OVERSEE.NET, ETWORK, OVERSTOCK.COM, OVERSTOCK.COM SITES, PRICELINE.COM INCORPORATED, SHOPLOCAL.COM, SOUTHWEST AIRLINES CO., TERRA TELEFONICA, TIME WARNER (EXCL. TURNER/WB), TIME WARNER - EXCLUDING AOL, TURNER DIGITAL, TRAVELOCITY, TWITTER.COM, TWITTER.COM*, WHITEPAGES, WIKIMEDIA FOUNDATION SITES Other IYP and Local Sites included in IYP Searches Share Include (slide 6): CAFEMOM NETWORK, CITYSEARCH, INTELIUS, YELP.COM 32
33 Appendix Local portal users tend to skew slightly younger than users of IYP pure plays; however user demographics are fairly homogenous. 100% 80% 60% 20% 20% % Composition Age 6% 6% 7% 6% 6% 10% 11% 12% 10% 10% 16% 17% 18% 21% 17% 17% 20% 21% 40% 21% 22% 22% 23% 21% 20% 16% 16% 13% 17% 16% 11% 7% 7% 7% 9% 0% Total IYP/Local IYP Pure All Other IYP Local Portal Internet Play % 80% 60% 40% 20% 0% % Composition Household Size 23% 20% 20% 20% 21% 27% 26% 26% 25% 26% 23% 23% 23% 23% 23% 22% 24% 24% 24% 23% 6% 7% 7% 8% 7% Total IYP/Local IYP Pure All Other IYP Local Portal Internet Play % 80% 60% 40% 20% 0% 21% 21% 18% 22% 22% 13% 14% 10% 10% 23% 22% 13% 10% 23% 14% 14% 10% 10% 22% 22% 15% 15% 16% 14% 15% 7% 7% 8% 6% 6% 11% 11% 12% 11% 11% Total Internet % Composition Income IYP/Local IYP Pure Play All Other IYP Local Portal < $15k $15-25k $25-40k $40-60k $60-75k $75-100k $100k+ 100% 80% 60% 40% 20% 0% % Composition Presence of Children 58% 42% Total Internet 51% 52% 50% 54% 49% 48% 50% 46% IYP/Local No Children IYP Pure Play All Other IYP Local Portal Yes Children Source: comscore Media Metrix,
34 Appendix IYP users who search to gather research, find a company that offers a specific product/service, or purchase a product/service are more satisfied than those who are looking to find contact information or address/directions. IYP Satisfaction with Search Experience Based on Reason for Search Neutral Very Satisfied (Top 2 Box) Success of Typical IYP Search I rarely find the info It takes many searches It takes a few searches I find the info right away 34% 35% 34% 45% 47% 1% 1% 41% DE DE DE 66% 65% 66% 55% 53% 57% Gather research [A] Find company that offers specific product/service [B] Purchase product/service [C] Find contact information [D] Find address/directions [E] Indicates a significant difference in the amount of satisfied people 90% confidence level Source: Local Business Survey March 2011 (n=2012) 34
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