Category Archives: Conferences

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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Money2020: The Payment Leaders and Their Itch to Get into Marketplaces

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The march towards a new generation of marketplaces was clearly in evidence this week in Las Vegas, as the 4th edition of Money2020 attracted a huge, 10,000+ person ecosystem of financial players that all want a piece of the new world of marketing, commerce and logistics.

In the new era, marked by mobile-based services, Uber and Apple Pay have shown the way for new payment processes: the former by tying together geolocation and an e wallet; the latter by signing up thousands of merchants to accept simplified payments on iPhones.

These companies plus Google, Facebook, Amazon, Microsoft, Groupon, eBay, Twitter, Living Social and Foursquare have been among the dotcom and tech giants exploring the utilization of payments as part of a new breed of “transaction marketing.” Loyalty based plays such as Cardlytics, Edo Interactive, FiveStars, Belly and MOGL are also vying for a piece of the action.

What can be said is that everyone is evolving towards becoming some type of marketing integrators or platform. And services that are geared towards millennials need to get there quicker: millennials won’t do anything that isn’t geared around their phones.

Behind the scenes, billing and payment tech has actually been underpinning advances in business and social processes and lifestyles for generations – perhaps, in modern time, since Amex transformed from a pony express delivery company to a traveler’s cheque company. As recently as the 1980s, we saw how MCI’s revolutionary Friends and Family plan transformed MCI into a long distance giant.

The new generation of mobile-based, wallet-oriented payment services — combined with Internet of Things connectivity and biorhythm user authentication — will be triggering on demand services, promotions, loyalty, credit, loans, delivery/pickup, social media/reviews and back office features such as payroll.

As a show, Money2020’s growth has been spectacular. But in its 4th year, some wondered whether the Money2020 ecosystem has grown too fast too soon, and that “winter is coming” after a year that culminated in the launch of Apple Pay; the expected rollout of two IPOs; and major buy-ins from the dot com giants.

In truth, the industry’s not an overnight success – and the technology still needs to catch up (i.e. phone batteries that can stay powered up). Apple Pay and other mobile payment services have had modest growth in actual usage; First Data’s IPO was smaller than expected; and the loyalty programs have had trouble scaling merchants. In fact, there is real pessimism about Square’s upcoming IPS; and there’s been some retreat by the dotcoms, many of whom have realized that their role is less in banking and payments than in big data and marketing analytics.

Bain Capital Ventures Managing Director Matt Harris noted that all this talk of the “winter” amount to “nothing.” The opportunities are as rich as they’ve ever been conceived, he said.

In fact, everyone should hurry to assume their parts in the ecosystem. All the trends point to 2016 as the mobile payment industry’s probable tipping point. eMarketer’s Bryan Yeager suggests that mobile payments will grow 3x over 2015 – from $8.7 billion to $27.1 billion.

Banks, of course, are widely assumed to be the most vulnerable to disruption in the new environment. But at Money2020, they showed that they plan to fight back, while leveraging an enormous volume of customers that give them a headstart. Chase, for instance, has 94 million debit/credit card accounts. CEO Gordon Smith, in a keynote, said he’ll be able to preload all these accounts by mid -2016 with Chase Pay: a comprehensive new platform that lets customers pay for goods in store, online, over the air, or with a camera in app.

Capital One, similarly, has come out with Spark Business, a new SMB platform that takes an agnostic approach towards single source banking as it builds in analytic services, management features such as accountings, payroll and benefits. “Banks (only) solve banking problems,” noted Cap One’s Keri Gohman, head of Capital One’s Small Business Bank. “They aren’t developing for SMBs, they are going up from consumers, or down from corporate.” The new platform is “more powerful for adding more connections and partners,” she said.

The POS leaders also intend to fight back against the new breed of cloud-based providers. They’ll leverage their existing customer base – VeriFone, for instance, has 90,000 taxi and gas station screens around the world. Taxi passengers in Las Vegas, for instance, can opt to pay $3 to make a credit card payment, and receive local promotions at the same time.

But VeriFone will also work to add new capabilities, and open app stores that give them a new revenue stream for every kind of service. Its rivals in the POS terminal business – namely First Data’s Clover and Poynt – are also building App stores.

“The industry is on the cusp of something historic,” noted PayPal CEO Dan Schulman, who notes that PayPal has 107 million account holders around the world. “We can take basic transactions and make them faster, easier, more secure and most importantly, less expensive. We can truly democratize money. (We can) rethink what financial services can be in world of mobile and software. It is not (just) about tapping a phone or swiping a card. It is much more profound than that.”

@LocalOnliner: Day 1, BIA/Kelsey SMB (Hibu, Constant Contact, Home Advisor, Booker, YP)

Hibu USA CEO Kevin Jasper
1. Sales team is now 1,600, down from 4,500 peak. Bringing in new talent.
2. New customers we acquire today are almost exclusively digital.
3. Prints revs still more than half. Digital will surpass in next several quarters.

Constant Contact SVP Joel Hughes
1. $100 Constant Contact package cost breakdown: $85 FaceBook spend, $15 management fee.
2. Two changes in smb marketing are advances in audience targeting and rise of native advertising.

Peter Hutto
1. Three changes in SMB marketing: low cost tech, tools, data; massive, global audience platforms; digital consumption shifts.

Home Advisor CEO Chris Terrill

1. One million appointments forecast for Home Advisor in 2015, with service launched 6 months ago.
2. $350 mm anual rev, 7 quarters of accelerating growth, 12 years of consistent profitability.
3. “Multi vertical” vs. “focused vertical.” Best way to grow is focus on single vertical.

Booker CEO Josh McCarter
1. Retention we see (for service platforms)..churn is 3-6% a month. Booker’s is 1/2 percent.
2. Stand alone scheduling is insufficient…SMBs have real world needs” (for integration)
3. At Booker, we’re seeing 30% of (SMB) sales come from pen and paper. totally disconnected.
4. LocalCommerce Market: Less than 25 k: 15 m. More than $25k: 7.5 M.
5. Service businesss account for 60% of US GDP
6. “Local service commerce” cuimlination of online/offline to drive offline–encompasses all tools.

YP SVP Harpreet Marwaha
1. YP hiring 200-300 reps per month for past 6 months.

BIA Kelsey Data
1. 57% of SMBs use Facebook for marketing, per BIA/Kelsey survey.
2. 3,022 companies in the Local Verse.