All posts by Peter

The BIA/Kelsey/CardLinx Survey: Momentum For Card Linked Offers

Will card-linked offers supplement coupons and advertising for national and local merchants and services? Will financial institutions such as banks and credit card companies take advantage of their access to card data to become major players in ecommerce and media as well? And will cash back remain the primary driver of the card-linked offer space?

These are some of the key questions we asked in an anonymized survey we have just completed with members of The CardLinx Association, whose roster include such companies as Microsoft, Facebook, Bank of America, MasterCard, American Express, First Data, Cardlytics, Living Social, Deem and Linkable. Some non-members also participated in the survey, which had 14 respondents in total.

One key finding: this space appears to have momentum. While some startup publishers have ceased their operations, others have dug in. And more merchants and consumers are participating in card-linked offers than last year. Respondents also noted that card-linked offers have gone from representing “experimental” marketing budgets to – in some cases — seven figure contracts.

Survey results will be debuted for the first time at BIA/Kelsey’s Leading in Local: Interactive Local Media Conference Dec. 3-5 in San Francisco. The session also includes interviews with CardLinx Association CEO Silvio Tavares and Cardlytics CMO Kasey Byrne.

Angie’s List Goes ‘Mobile First’

Angie’s List, which has recently seen a deterioration in its stock as investors have lost confidence in its ability to grow its premium subscription and ad model, has announced that it has gone Mobile First. The changeover is significant because the company, which has nearly three million users, has continued to support a wide variety of media. Many years after other companies went all digital, for instance, Angie’s has continued to provide personalized phone referrals to its well heeled (and older) home owner customer base.

The move to mobile first is accompanied by the launch of a new mobile app, which offers “concierge level” help for consumers seeking to hire the right service and medical professionals. It provides research for providers; shop for specific home improvement services; and “SnapFix” a project, automatically assigning service pros to projects based on specifications.

“We studied our members’ behavior and directly asked them what they want from us,” noted a company press release quoting founder Angie Hicks. “As a result, we’re not just connecting them to highly rated service companies through a swipe or a click, we’re stepping into the transaction, improving their experiences start to finish.”

A press note added that the new efforts are “symbolic of the corporate shift from just providing highly reliable information to getting in the middle of transactions to make the hiring process easier and the results better, faster.”

We’ll be diving deep into the future of Home Improvement services with local digital leaders from The Home Depot, Thumbtack and Serviz on Day 1 of the Leading in Local conference in San Francisco Dec. 3-5. You may register here.

Leading in Local Update: 50 Speakers Are Set (Dec. 3-5, SFO)

The end of the year usually means a few things to us: the holidays; our annual predictions; and Leading in Local: Interactive Local Media, the industry’s flagship event.

This year’s event is especially hot — a 2 1/2 day extravaganza taking place Dec. 3-5 in San Francisco. More than 50 speakers have been recruited by the analyst team, and we’ve added some great extra-curricular activities, including a Tech Expo with top companies showing off their wares “Before The Bell” on Day 1; a Women’s Leading in Local networking event on day 2; and an International Roundtable.

Here’s our newest news: BIA/Kelsey Analyst Emeritus Matt Booth (currently CEO, Connectivity) is coming back to moderate one of two Executive Sessions with Google leaders. We’ll kick off with Managing Director of Global Channel Sales Todd Rowe, than go deep in conversations with Head of premier SMB partnerships Christine Merritt; Adwords Express Product Manager Francisco Uribe; Google My Business Senior Product Manager James Croom; and Global Business Leader for Google Shopping Max Frause.

We also have feature presentations set by YP CMO Allison Checchi; Deseret Digital Media CEO Clark Gilbert and President Chris Lee; Yodle CEO Court Cunningham; Pinterest Head of Partnerships Joel Meek; and Salesforce VP Randy Wootton.

We are also set with a great discussion between me and Business Book of the Year Winner Brad Stone, author of The Everything Store: Jeff Bezos and the Age of Amazon. And then there are the feature presentations by First Data SVP Krish Mantripragada; InfoGroup CDO Matt Graves; and Go Daddy SVP Raj Mukherjee. And we’ve also got a great, seven company Superforum dedicated to local’s most important issue: “Make the Phone Ring.”

There’s so much more. Check out the Full agenda. Register here.

LevelUp Teams with Sprint for Billing: Will Carriers be the New Local Billers?

More than 15 years ago, telecom carriers seemed like the logical candidate to handle ecommerce and other third party billing. But high commissions as high as 30 percent ruled them out for handling most billing accounts, after a fast start with porn and other services.

Now, Sprint is re-entering the third party billing arena and will compete with credit and debit cards via its Pinsight Media mobile ad network. The #3 U.S. wireless carrier with 50 million subscribers, has signed a deal with LevelUp to be one of several processors of its bills.

Customers who choose to pay with Sprint at any of the 14,000 merchant locations that take LevelUp will receive a 10 percent rebate as an added incentive. Those spending $100, for instance, will get $10 back.

Speaking at Money2020 this week in Las Vegas, LevelUp Founder Seth Priebatsch said the advantage of teaming with Sprint is that it is “frictionless” and “easy to set up.” The ace in the hole is working with Sprint’s ad network, with is working with 150+ enterprise apps. The ad network can boost restauranteur and retail affinity and allow for users to target based on geo-location, demos, interest/social profiles and LevelUp App Usage.

Sprint is the only mobile carrier who can provide fully integreated mobile ads with carrier billing,” noted Priebatsch. He would not comment on what LevelUp will pay for Sprint billing, although costs will likely be partially defrayed by the use of the ad network.

Groupon Seeks Industry Partners; Wants to Close the Loop for Merchants

Forty percent of merchants run some kind of “special” sales or promotions according to a Groupon survey of 25,000+ merchants. Half of the specials are offline, “trapped” on chalkboards and menus, noted Groupon VP of Marketplacest Dan Roarty, who was speaking at Money2020. “There is no aggregate source for them.”

Roarty said that the company, as part of its Local Operating System, has been working “to close the loop” via its G.Nome payments and loyalty system. Among other things, G. Nome provides a seamless redemption of deals, specials, coupons; automatic requests to leave feedback; and “automatic goodies” for being a great customer.

Many other elements are required to really close the loop, however, said Roarty. Groupon is currently soliciting help from partners who can enhance its efforts to provide payments, Point of Sales info, Geo Fencing, Wifi and Beacons. “Groupon can uniquely blend all these signals and put customers in control,” said Roarty.

Money2020: ApplePay Drives Mega Event

The emergence of geo-targeting and mobile payment and wallet technologies has meant that we talk a lot less about the future of “advertising” than “marketing.” All this was crystal clear this week at the third annual edition of Money2020 in Las Vegas, a showcase for payment innovations, and a major boomtown, too. Attendance climbed from 4,000 attendees in 2013 to 7,500 attendees this year. Next year, the show will move to much larger quarters at The Venetian, and add a European edition.

BIA/Kelsey participated in this year’s festivities by presenting new research into card linking trends during a special offsite session hosted by The Cardlinx Association.

ApplePay – not part of the program, incidentally — was clearly the big driver of this year’s event, rebuilding momentum lost from earlier efforts by Google Wallet and others. As Visa President Ryan McInerney noted, the high awareness of ApplePay generally, and its use of tokenization has brought a real sense that payment technologies have moved beyond credit card account numbers towards high impulse and efficient transactions.

It will also help open the door to a new generation of payments, promotions and services – even if many features, such as NFC contactless payments, won’t be in widespread use for several years. Kicking off the show, McKinsey & Co.’s Philip Bruno and Kausik Rajgopal highlighted six major payment themes. These included:

1. Point of Sale evolution
2. Payment security
3. Crypto-currency
4. Globalization of commerce
5. New credit models
6. New partnerships and acquisitions

Things are happening very fast in this space, noted Bruno. It was just 17 years ago that ecommerce began. It has now crossed the trillion dollar mark.

American Express CEO Kenneth Chennault, during an opening interview, said that when it comes down to payment innovation, it all comes down to one thing: Merchants want to grow sales. Does the innovation “help merchants meet customer needs?” he asked. “Do they provide incentives for changing customer behavior?”

Chennault expressed confidence that Amex, for one, is providing marketing insights that “allow us to provide different types of promotions and offers to drive more business. Not just acceptance, but engagement,” he emphasized.

Other industry leaders also spoke about appealing to merchant needs. Heartland Payments CEO Bob Carr, for instance, said that they key thing with payment innovations is not to give advantages to a merchant’s best customers without disintermediating merchant margins. “The problem with othwerwise useful sites like OpenTable and GrubHub is that they disintermediate margins,” he said.

Money2020: First Data, Poynt Show Off Mobile POS Solutions


The Point of Sales revolution that began with Square’s introduction of its iPhone fob in 2009 has continued unabated. Rising consumer expectations, increased mobile and WiFi access and more tools have made POS a strategic tool that could not have been imagined a few years ago.

Among the new breed of solutions are ReachLocal’s ReachCommerce suite; Groupon’s Genome; Heartland’s Leaf; and First Data‘s Clover, which now has 26,000 terminals in the field after its initial release seven months ago.

First Data purchased Clover in October 2013. The tablet-based system was seen as the cornerstone of a new strategy that would update First Data’s reliable, table-based POS terminals. The acquisition of Clover was also designed to integrate with its Perka loyalty program, which was acquired at the same time; and its Insightics analytics.

At Money2020 in Las Vegas this week, First Data unveiled a new mobile -first extension of its Clover station. Poynt similarly showed off its own new mobile-first terminal. Both companies’ mobile terminals are attractive, Apple-like, white hardware mini-tablets. Clover boasts a handle to better hold on to its tablet, while Poynt features a large bump.

A major part of both their strategies is to accept a number of third party Apps. Clover now has dozens of Apps in its store and hopes to have 100 by year-end. The Apps often carry monthly add on charges of $5-10 a month, instead of just being sold for a flat fee, like consumer Apps. The Apps provide such features as employee punchcards; instant ratings and reviews; virtual giftcards; coupon managers; and charity donations. Clover and Poynt also boast printing options.