Category Archives: Conferences

MarTech’s Growing Impact on Local, SMB and Niche Marketing


Chief MarTec Scott Brinker

MarTech — the integration of software and marketing — is a wild card in the new generation of marketing. The new era of Martech takes into account not only ads and promotion, but content and experience, social and relationships, commerce and sales, data and management. The question for us is how it all ultimately applies to local, SMB and niche marketing.

It is certainly true that we’re increasingly focused on MarTech-centric issues: such as driving more customer loyalty and upsells via engagement, utility, targeted promotions and analytics. In our space, its been the differentiator and evolved focus for such social and promotions oriented companies as Radius Intelligence, Surefire Social and Signpost.

The keys are the “marketing pace layers,” as described by sector pioneer Scott Brinker, in his new book, “Hacking Marketing.” Brinker notes that in the modern era, campaigns take weeks, tactics take days but feedback and iterations (i.e. social media and messaging) are in real time and have become increasingly important. While advertising will often retain a central place, other critical channels are now invited into the “core“ marketing experience. Brinker thinks it is a 70/30 ratio.

In a keynote live streamed at his MarTech conference today in San Francisco, Brinker previewed many of the attributes of the MarTech revolution. Brinker notes that there were 350 companies in the space in 2013, 1,000 in 2014, 2,000 in 2015 and more than 3,500 in 2016 – 87% growth in the last year alone.

One of the key attributes of the space is that its scope and marketing relies on so many pieces that the Microsofts and SAPs of old –which assembled monolithic building blocks of tech — no longer really apply. All the companies in the space are constantly iterating and borrowing or partnering from each other. “The real story is: how do you leverage the opportunities,” says Brinker.

LSA16: Thumbtack Focuses on Creating an ‘SMB OS’

Thumbtack President and Co-founder Jonathan Swanson

Thumbtack is an SMB sleeper. It has raised $275 million, using it to develop a profile-based, one click referral system. Last quarter, 200,000 service SMBs bought some level of lead bundles, which can be purchased in packages ranging from $10 to $600 per week.

Under Thumbtack’s model, service pros only buy the number of leads they want to deal with. Consumers receive a choice of 3-5 referrals per query (yes, sort of like Home Advisor.) The beauty of it: no sales force — the single greatest expense in the industry. Thumbtack simply finds its service pros via sophisticated searches and builds a searchable profile. In some cases, it is enfranchising entire new groups that don’t have storefronts and aren’t typically approached for marketing (i.e. photographers, dog walkers)

We’ll see whether Thumbtack hits a wall with the model, given that many SMBs have needed a push from a sales consultant to keep their foot on the gas. Meanwhile, the Thumbtack team isn’t waiting to see what happens. It plans to deepen its engagement with SMBs by developing a comprehensive SMB “operating system” that will connect all the dots for busy service pros that need help with scheduling, presence, marketing and back office chores.

Speaking at LSA 16 this week in San Francisco, President and co -founder Jonathan Swanson says the company is basically extending its longtime mission of moving away from the omnipresent directory model and be more Amazon-like. He calls it a “features” approach. “The more we looked at our competitors, the more they looked the same,” he says. Competitors include such companies as Angie’s List, HomeAdvisor, Porch, Amazon, Google, Dex, Hibu and others.

Swanson says that the company’s main mission is to extend its relationship with its service pros, and make that relationship more rewarding. Churn isn’t an issue since there is no contract – just new business. “Once a professional is hired (using) Thumbtack, they stay with us forever. If they are being hired, they come back again and again,” he says.

The SMB operating system concept isn’t necessarily a new one. Groupon was talking about it a couple of years ago, seeking to enlist partners from a wide variety of niches to “close the loop” on its payments and loyalty system.

Thumbtack’s vision is to leverage its core competencies, mostly using internally developed resources. “We’re good at Adwords, payments, scheduling,” says Swanson.

With the OS in place, service pros can “open the App, tell us their skills and we can tell them what they can earn in different parts of the country. We’d help you start a small business, get a license and get customers. You focus on what you love doing, and we’ll focus on everything else.” The company, meanwhile, can also educate consumers on their bids and what they can expect to pay. Many consumers, for instance, wouldn’t realize that a quality photographer wouldn’t bid on a $500 photo shoot.

Upcoming Local Events, and My Discount Codes (LSA, BIA/K, Shoptalk)

23030870713_75faed20a0_z Having Fun with Nicco Mele on Stage

Lots of great events coming up for the local digital community this spring.

Feb. 29-March 1 is Borrell’s big LOAC show in New York.

March 7-9 is the Local Search Association’s Show in San Francisco. I’m looking forward to seeing everyone there. You can register online and use “PETERK” for $200 off.

March 22 is BIA/Kelsey’s Brands conference in New York, focusing on national brands and retailers targeting locally. Edition 4! The $100 discount code is “BRANDSPK”

May 15-18 is ShopTalk in Las Vegas, which will gather 2000 people interested in the next trends of big and small retail. It is produced by the founders of Money2020, and I have signed on to be a media partner. The $250 off discount code is “local250.”

May 16-18 is BIA/Kelsey’s Engage show in San Francisco, which is the successor to the SMB show and will focus on local SMB success stories. The $200 discount code is “ENGAGEPK”

June 7 is Street Fight Summit West in San Francisco, which is always a great event. Good discounts are currently in effect and “PeterK” gives you another $75 off. I’ll definitely be there.

Cardlinx San Francisco: The Drive to ‘Incremental Spend’ by Consumers

The evolution of the card linked space is happening in unexpected ways, as we saw this week at Cardlinx’s San Francisco conference. It was the association’s largest event in its two year history. Basically — the table has been set; a number of early arriving guests have arrived; and we are now waiting for real momentum and numbers to come in.

The first to come on board have been the larger companies, which thrive on the analytics – they want to know who their customers are, and how to market to them. The smaller merchants are more impacted by the direct impact of offers that drive store traffic and are still using their traditional options (ads, dm, coupons, etc.)

The event’s large attendance –130+ — reflected the rollout of several key card-linked based projects, such as Plenti from Amex, Macy’s, AT&T, Enterprise Rent a Car, Exxon Mobile and others; and a major card linked rollout from Whole Foods. Living Social has added a card linked element in dining rewards; and Groupon is tentatively preparing one as well, with 15 percent off as a constant feature.

Card linking is also seen as being deeply integrated with payment and messengering programs that are more directly driving commerce. Facebook, for instance — a Cardlinx member –appears to be studying a role for card linking on its growing Messenger platform, which is already set to provide shipping updates, book rides and send money.

Widely used, well-subscribed platforms are expected to add scale to card linked concepts as well. Speaking at the event, Empyr CEO Jon Carder said he could see 20 million active consumers building a $10 billion annual business –with $750 million in revenues going to the participating card linked offer companies. “It is a network effect,” he said. “The more participants, the more consumers you have, the more revenue you get. “

Whole Foods has whole-heartedly embraced its card linked program – which is a bit of a surprise for a company that has historically been “discount reluctant.” Payments Marketing Director Marushka Bland said card linking will give it an edge as the company faces serious competition in the organic grocery space from Kroger, Costco, Walmart and others. The company is now “much more open to worrying about its customers and eager to focus on things like loyalty.”

Whole Foods started rolling out its affinity program on a small scale in 2014. It is currently rolling out digital coupons. “It is about our customers and how they shop with us,” said Bland. “Execution, targeting and attribution” are the keys to the program, with a target goal of 10 percent incremental spend.

Incremental spend is also the chief goal for Excentus President and CEO Brandon Logsdon, who stressed that the key is not to focus on Card Linked Offers, but on getting participation in card linked programs. (He’s right: I’m going to phase out my own references to CLOs.)

Excentus rolled out its Fuel Rewards program in 2012. More than 6.5 million cards have been registered, and there is an active group of 1.4 million linked cards. Customers have spent $450 million on a growing list of affiliating merchants, and gotten $3.6 million back on fuel costs (roughly 5 cents a gallon). Logsdon adds that the merchants are seeing brand new spending from the programs. Fifty percent of those coming in are new customers; and 65 percent of promoted sales are incremental.

Empyr CEO Jon Carder

Empyr CEO Jon Carder

At BIA/Kelsey NEXT: Local’s New Linking Technologies and Intersection’s LinkNYC

We always like to call out the “laboratories” of locals, and efforts to embrace and leverage the latest technologies. At BIA/Kelsey’s NEXT conference Dec. 9-10 in Hollywood, we heard a lot from the laboratories, and their various goals.

Interestingly, most were not focused on simply extending media properties, or making them more efficient (except, perhaps, the automation and programmatic guys).

Instead, we saw a heavy focus on the new linking technologies, which take data from everywhere; personalizes it; and pushes it out across different channels, especially mobile. Google Now, Facebook, Microsoft, Groupon, Mogl, Intersection, Button, Orange, Quick.ly, Workwave, Retailigence and Wanderful Media were among the progressive companies presenting (and Local SEO Guide’s Andrew Shotland talked about Apple’s new focus on extending Apple Search across all its media and commerce channels). The linking efforts would ideally produce “a Tesla” from the combination of cost value, experience value and platform value, noted Cisco Research Fellow Andy Naronha.

Intersection – a new company formed by the merger of Control Group and Titan, and invested in by Google’s Sidewalk Labs — certainly has its eyes on the prize. CSO Dave Etherington said the company’s LinkNYC is a prototype project bringing data and media to the 3.5 million New Yorkers who don’t have access to broadband by transforming 7,500 payphones throughout the five boroughs to broadband machines. They’ll each feature a free gigabyte of Wifi, and access to digital services.

Intersection has a 15 year contract from New York for the project, which is projected to be funded by ad sales, and lets the city “reimagine real estate, technology and value…..wherever there is real estate. The more value you can bring, the more people will use it,” says Etherington, noting that the effort is working to “democratize the city” and will inspire new efforts by schools and hackathons. At the same time, ad revenue sharing is projected to bring in over $500 Million to the city’s coffers over the project’s first 12 years.

If it all works, it is definitely a better deal for New Yorkers than giving Disney the keys to a large part of 42nd street to help redevelop it, or Donald Trump the keys to the Commodore Hotel on a tax free basis to build today’s Grand Hyatt.

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Intersection’s Dave Etherington and Cisco’s Andy Noronha

Sneak Peek at BIA/Kelsey NEXT Show: 6 Things I’m Watching For

“End of Big” Author Nicco Mele Keynotes BIA/Kelsey NEXT Dec. 9-10

BIA/Kelsey’s December event has been local’s flagship, and always ahead of the curve in all of local’s iterations. It has been widely imitated, but never totally duplicated! I‘ve been producing it for a long time, but this year, handed it off in midstream. I’ll be moderating some great sessions, though, and the conference team has ended up with 52 hand-picked speakers, a Tech Expo and two full days of programming. Here are some of the things I’m most excited about:

1. The New Cut on Local and Community. Local’s still at the concept stage in a lot of areas. Why think small? Two leaders from USC’s groundbreaking Annenberg School (my alma mater) will point to the new directions in separate keynotes. First up is Nicco Mele, the author of The End of Big (2013), a tour de Force on “radical connectivity.” He’s also fresh from his stint as deputy publisher at The LA Times, where his team’s efforts to seize new initiatives in local had already produced major new revenue streams. He’ll have a lot to say about what’s going to work. Leading off Day 2 is Dr. Karen North, Director of Online Communities, a dynamic presenter who is focused on Millenial applications and behavior – you’ve heard, perhaps, these kids live on the phone?

2. Keynotes from Google and Facebook: The latest in local from the two dominators and trend setters in local. Danny Bernstein at Google is set to highlight its deep linking efforts (Google Now). He is sharing the stage with Button’s Chris Maddern and Local Seo Guide’s Andrew Shotland.

3. Big Thinking about MarTech: Big Data’s impact on local cuts many ways – analytics, leads, targeting, planning, But it’s only a subsegment of the broader “MarTech” movement. Those in the know attend Scott Brinker’s annual MarTech conference in Boston. Scott, who also runs ionactive, is going to focus on local and highlight what’s important and why for us at NEXT. He’ll be joined on stage by Surefire Social’s Chris Marentis.

4. The Mobile App-Driven Marketplace. The mantra is that it isn’t really about search right now, because Mobile apps are driving the marketplace. What’s that really mean for local? One of the best analysts I know is Mark Plakias, who has been running Orange’s think tank in Silicon Valley for several years. He’ll be joined by Quick.ly’s Paul Ryan and DialogTech’s Steve Griffith. This will be quite a session.

5. Local and The Internet of Things. We’ve been pondering iOT’s impact on local — when everything is linked, from transit cards to vending machines. So has the new venture, Instersection, which is a partnership from Google Ventures and former Bloomberg head and NYC Deputy Mayor Dan Doctoroff. CSO Dave Etherington will provide insights on what they are up to. He’ll be joined on stage by Cisco’s Andy Noronha.

6. Close Up on The New Local Marketplaces. We’ve been saying for a long time that local marketing has gone beyond advertising. Now it’s “closing the loop” with transaction data, offer targeting and complete behavioral profiles reshaping the game. Groupon’s Dan Roarty, Microsoft’s Neal Bernstein and MOGL’s Jon Carder share their insights. Cardlinx CEO Silvio Tavares will add data and help me run this session.

Haven’t got your ticket yet? I have a *little* influence and can get you $400 off. Please use this discount code: LOCALONLINER. You may register here.

Money2020: Payments and The Internet of Things

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The Internet of Things is all about connectivity; it is especially conducive to the world of payments. Branching out from prepaid information on transit cards (i.e. London’s Oyster Card), financial entities have sought to add efficiency, security, reliability and safety to micropayments via Internet of Things tech.

At Money2020 in Las Vegas this week, the demos were alive with iOT. MasterCard and Visa, especially, showcased a wide range of truly useful applications.

Over at MasterCard, contactless card gas pumps, vending machines and coinless washer/dryer machines were highlighted. Regarding the latter, a member of MasterCard’s St. Louis based labs unit noted they had done their homework, interviewing multi-unit apartment owners, who have found it a costly burden to collect coins from machines, prevent coin box break-ins and know when they were needing repair.

Gas pumps, meanwhile – a mainstay of Digital Out of Home applications – were not only seen as logical candidates for contactless payments, but also to manage loyalty points and print out targeted offers to mobile phones. (yes, DooH is made old hat by iOT.) Excentus’ Fuel Rewards – a loyalty program — is a likely beneficiary of such efforts. In 36 months, Fuel Rewards has attracted six million members, who made 22 million transactions.

Visa’s demo highlighted contactless cars, vending machines and coffee stands. Key to the latter: payments were made by contactlessly waving a hand under a scanner. The unique hand data (finger prints etc.) is suggested as a superior alternative to thumb ID. It isn’t seamless, yet. My large hands required several do-overs to get them properly filed. Eye scanners from Eye Verify that measure the whites of your eyes and retinas were also highlighted at the show.

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