Category Archives: Social Media

Ex Reach Local CEO Revisits Home Improvement; Groupon is Lead Investor

ReachLocal cofounder Zorik Gordon left the company last year after veering sharply to the left with ClubLocal, a consumer-facing brand that would collect home improvement pricing and reviews, and assign jobs to home improvement pros.

Now, Gordon and several ClubLocal alumnis are back with Serviz, a similar service that has launched in southern California after running a beta since February. Groupon is Serviz’s largest investor, with an undisclosed ownership share. ReachLocal, where much of the intellectual work was developed, still controls 19.8 percent of the company.

Groupon could theoretically apply its sales forces to recruit home improvement pros, but Gordon tells us that Serviz is being launched with its own sales forces. Most of the core concepts remain the same from ClubLocal –recruit consumers with convenience, price and service guarantees and a strong review base, and recruit home improvement pros with guaranteed work. “They are fundamentally on demand home services,” said Gordon. “”What we’ve done is focus on transparency, and transparency of pricing. Uber has shown what it takes to really hold and disrupt the conventional ecosystem.

The key differences this time take off from this theme: there is a focus on sole practitioners, who have more flexibility in their time and ability to charge, and ultimately, much lower prices. “You don’t need to charge $250 for a home visit from a home tech, who is being paid $15 an hour,” said Gordon.

Gordon acknowledges there is a lot of competition in the space, with the emergence of players like Thumbtack, Pro.com, Handy, Home Joy and even Amazon coming in, all building on a base that already has Angie’s List and Home Advisor.

Amazon will come in as a marketplace, and won’t be a direct competitor, he says. In fact, he hopes to participate in the Amazon marketplace. “No one is going to come to your house with an Amazon shirt,” says Gordon.

The other services range from what Gordon characterizes as directory listers, like Thumbtack and Pro.com; to low end service fulfillment players like Handy. Serviz will work at higher point in the value chain by focusing more on specialized service providers like HVAC and electrical. “We’re building a horizontal platform around higher end home services,” he says.

Zorik Gordon and Thumbtack CEO Marco Zappacosta are among the initial speakers appearing at Leading in Local: Interactive Local Media, Dec. 3-5 in San Francisco. Get early pricing now.

Facebook’s Joe Devoy, BIA/Kelsey New Orleans: ‘Pairing Advertising, Sales Data’

Facebook announced today an ambitious program to match sales related data from a variety of sources to show ROI. Speaking at BIA/Kelsey’s Leading in Local: SMB Digital Marketing event in New Orleans, Product Marketing Manager Joe Devoy noted that the program reaches out to Facebook users for feedback because sales results cannot really be ascertained from click thrus. The program is being tested with national advertisers, but is clearly aimed at SMBs, who make up the vast majority of Facebook’s 1.5 million advertisers.

“Within local, our misision is to create the most relevant ads for people on the platform, says Devoy. But “Measuring offline sales has always been difficult,” says Devoy. “Clicks don’t have an impact on the performance of the campaign.” Ninety- nine percent of people who saw an ad on Facebook and later went into the store never click on an ad.

The program’s ad exposure helps tremendously. There is a 70 percent higher ROI from campaigns that maximize reach, and an 8X return on ad spend, says Devoy. At the end of the day, “Facebook reaches the majority of consumers. We can reach any vertical,” he says.

Merchants Helping Neighboring Merchants: Ex Constant Contacter Launches Alignable

One idea we’ve kicked around for a while is that merchants can generate business tips and customer referrals for neighboring merchants in a strip mall, or down the street. Why shouldn’t the cooking store people refer customers to the gourmet grocery? Or the hardware store people refer customers to plant nursery? At least, they can share tips about landlords, taxes, advertising and supplies.

At this point, several companies have tried it. It has been a leading premise behind the launch of local sites such as MerchantCircle and ShopCity.

The popularization of social media has led former Constant Contact executive Eric Groves to try it once again with Alignable, his new startup. Groves contends that there is vast local knowledge in pockets throughout communities. But many SMBs miss out on marketing opportunities because of the isolated state they operate in. “They never connect with people who are just 10 feet away from their dry wall,” he says.

Alignable makes it easier for merchants to share information; post calendar information; and other information. For SMBs, it is a growth engine, says Groves. What’s in it for him? Because there is generally so little overlap between the customer bases of neighboring merchants, the combined resources of hundreds and thousands of merchants represent a new way to reach a large quorum that could easily rival the reach of a local newspaper or broadcasters.

Informal surveys conducted by Alignable show that overlap rates between customer lists are generally less than two percent. A large community such as Austin, for instance, already has 700 businesses on Alignable. If the majority of Austin merchants were to signup, it would represent a combined reach of 1.5 million, Groves estimates.

Other fast-out-of-the-gate markets for Alignable include Denver, Phoenix and Oakland. In fact, the service is now available in 3000 communities representing every state, as well as Canada.

Looking forward, Groves sees opportunity not only to hook up neighboring merchants and their customers, but vertical players across the county. Health and Wellness has been an early winner, with MindBody Online serving as a strong partner for Alignable, says Groves.

Alignable is a member of the 2014 Future Stars, and will be part of Future Stars Alley at Leading in Local: SMB Digital Marketing Sept. 22-24 in New Orleans. You can register here.

Home Advisor’s Chris Terrill: Poised for Growth, New Services

Almost two years ago, IAC was in a tough situation. It had a leading services referral business in ServiceMagic, whose main rival was Angie’s List, the paid subscription service. But the service wasn’t growing; had relatively low brand awareness; and seemed to be in danger of getting bypassed by a new crop of social media driven services.

In an episode of creative destruction, IAC, along with new CEO Chris Terrill, made the decision to rename the company to “Home Advisor”; and narrow its focus to home services. Terrill later refocused the company’s primary business model from pay per lead to monthly subscriptions that would include a variety of value added social media and directory services (pay per lead options remain available).

Today, the Home Advisor brand may not be as well known as ServiceMagic at its peak. It also remains under the radar in the business world. That is partly explained by the company not being VC backed or publicly traded as a separate company outside of IAC, says Terrill. “We don’t get written about as much.”

But Terrill says that the company remains one of the largest home service networks, with 80,000 service pros, two million reviews and 30 million home owner requests. It is also growing and profitable, and highly focused on “strategic sales.”

And it is focusing more on the awareness issue, conducting an ambitious TV campaign to reach more home owners. It will be spending even more on TV in coming months, with budgets that are in the “tens of millions” of dollars.

The picture looks bright going forward for Home Advisor and the entire home services space, says Terrill. Over the next couple of years, Terrill says Home Advisor will have a singular focus on growing its U.S. business.

“A lot of small entrants are coming into the space,” such as Pro.com, the service launched by former Amazon leaders (not to mention Amazon’s own entrance into the space.) “We see the local home space heating up,” he says. But Home Advisor remains a leader in the space – competing against players such as Angie’s List, Yelp and Home Depot’s Red Beacon — and continues to add building blocks, Terrill says.

Today, for instance, the company announced the purchase of Mhelpdesk, a 30-person Fairfax, VA-based company that helps service pros manage their businesses, and allows home owners to directly book services – especially over mobile phones. The service has over 10,000 service pros.

Terrill says that Mhelpdesk is a leader in a “rapidly growing space” that will prove increasingly important to the company. “It could not have worked 2,3,4 years ago,” he says, before the popularization of cloud-based mobile devices for SMB service providers. “It’s an important piece of the puzzle.”

Watch Out AAA: Urgent.ly Goes Uber, Takes on Roadside Assistance

Urgently 4_3

“Uber-ification” has been extended to many local segments, including hotels, restaurant reservations and promotions. How about roadside assistance?

Asserting that AAA and other roadside assistance services have outdated economic models and technology, local media and commerce vet Chris Spanos (AOL, Repair.com and Seniorchecked.com ) is leading a team launching Urgent.ly. The Washington D.C.- area company, which provides flat-rate repair truck assistance rather than charging annual insurance-like fees (i.e. $99), has done hundreds of service calls and is set to go nationwide. It completed its seed round of funding in March 2014, and is in the process of closing a larger, pre-series A round.

Like Uber, Urgent.ly has a free iOS App that contains a motorist profile and credit card information. Customers can easily tap their phones for a repair truck, and a live map lets them see where the trucks are at all times in the process. An additional feature is “FamilyView,” which allows drivers to link their app to a driving-age child, spouse or parent.

Spanos says 53 million customers are currently paying $70 to $130 for annual access to AAA, but most under-use use the services. The more serious issue with AAA is that customers often have to wait too long for a tow — some don’t get served within AAA’s 90 minute window. The problem? AAA only pays tow truck companies $20-25 and they have real mileage restrictions. The low payments mean that tow truck drivers will always give preference to cash calls from non AAA members. Urgent.ly’s on demand pricing takes care of that, says Spanos.

He also notes that people use AAA for a variety of services, of course, such as discounts to Amtrak, hotels, stores, and entertainment venues. “We may put in promotional discounts for auto-related services” at some point, Spanos notes. The key, however, is better transparency. “Transparency is the future of roadside,” he says.

Urgently Consumer Web App

CBS Local Buys Eventful (Updated)

Event listing sites were once seen as a leading hub for local media, and a great generator of user generated content and social media. It isn’t clear that they’ve fully caught on in these ways, but they remain strong promotional assets; sell lots of event tickets; and they also bring in related advertising.

CBS Local — which supports CBS Local Radio and TV stations — obviously sees their value. Today, it announced it is acquiring Eventful, one of the leading listings sites – and one that has evolved over the years to become a major social media player for local entertainment, and for entertainment services and lifestyle brands targeting local users (i.e. TV shows, movies, music, games, liquor and even politicians.) CBS Local has been an Eventful customer for some time.

Recently, for instance, Eventful created a competition among cities to host a preview of the new “Sleepy Hollow” episode. The campaign got 30,000 participants, 18 million social impressions, one million trailer views and 35 million digital media impressions. Thirty-one percent of the participants shared their voting on Facebook and Twitter.

Such efforts illustrate Eventful’s ambition to become “a behavioral targeting engine involving e-mail marketing and other personalized outbound promotions.” The company has been sending out over 100 million emails a month.

“The local targeting capability of the Internet and direct e-mail marketing services like Eventful helps agencies appreciate the benefits of local focus,” CEO Jordan Glazier told BIA/Kelsey a couple of years ago. “They are increasingly including local as a requirement within their buys.” Under the new regime, Glazier becomes SVP of Digital Strategies.

Will CBS Local focus on Eventful’s newer entertainment promotion areas or its listings activities? CBS Local President Ezra Kucharz told us that it is definitely planning to continue both of these efforts. They will complement CBS’ strong audio streaming and video streaming. But he indicated that Eventful’s core business of listings probably remains front and center. In particular, CBS continues to focus on personalizing its user experiences.

The price wasn’t announced. Eventful has raised over $19.6 million, and is said to have been profitable in recent quarters.

Eventful CEO Jordan Glazier and founder Brian Dear

The 2014 LMA Innovation Mission: What Tech Leaders Can Teach Traditional Media

When a traditional media executive visits Google, Facebook and other tech leaders, there is always a lot of oohing and ahhing and a bit of envy.

You can’t help but notice the great perks, such as free dry cleaning and gourmet food. Add to that their relative transparency; open seating that bust out the cubicles; first name relationships with the executive team; grand vision statements that go beyond profit; the distribution of company equity; and their trust in employees.

But these tech perks have been around now for years (and copied.) What are the real revelations that traditional media company executives can gain from a tour of tech leaders, circa 2014? That’s the question posed by The Local Media Association’s Fifth “Innovation Mission,” a six day, multi-city adventure that included on site briefings at tech and media leaders such as Google, eBay, LinkedIn, The New York Times, Buzzfeed, CBS Local, Gatehouse Media, Automattic, RussMedia and others

BIA/Kelsey spoke on last year’s tour, and we have been eager to see the report from this year’s edition. Here’s the summary: The new wave is all about sharing media; the widespread use of mobile has given rise to omnichannel publishing; and the next wave of internal communications and news gathering is quickly moving from email to messaging.

The tour’s focus on shareable media especially caught our attention. BuzzFeed – which gets 23 million of its 57 million daily views from shared posts –goes so far as to say that share data has become “the most important metric.” The report says this about Buzzfeed: “As ideas surface, they ask themselves: ‘would you share this with your friends?’ For Buzzfeed, share data is seen as a stronger indicator of audience engagement than HuffPo-like “click bait” that fools you into checking out an article, but doesn’t ultimately engage you.

What drives sharing? For BuzzFeed, the biggest driver of shared media has been YouTube; but Pinterest is #2 – much more impactful than live media such as Twitter. Facebook is also a big driver, although its impact is not immediate: it takes several days to build.

Is Buzzfeed’s relentless focus on shared media an apples-to-apples “best practice” for traditional media companies? Probably not. After all, it says its real focus is grabbing people who are “bored in line, bored at work and bored at home.” (One of its biggest traffic drivers is Miley Cyrus.) Still, as mobile’s share of media usage gains, and “boredom breaks” pre-dominate, there are definite lessons in studying its model.

The LMA Innovation Mission Report can be purchased here.