SMX Local / Mobile - The Ultimate Local Ad Model

Local businesses want leads and customers, not clicks. Although pay-per-click and pay-per-call are the two prevalent ad models to reach local searchers, will other models like CPA/PPA ultimately be more effective?

(Partial Liveblogging - other presenters not blogged… couldn’t get a coherant flow going :-P)

Steven Chuck, Director of Strategic Alliances, Yahoo!

Hyper Local - Mom/Pop

Do we see a day when cost per lead pay per action model takes hold in SMB advertising?

It depends on

• advertiser segment,
• full impact of web2.0 (ratings, etc.)
• sales channel.

Why are we asking?

SMB ability to value clicks - changing with time?

Yahoo - reasons to build a website?

• build awareness 72%
• Present credible images 66%
• providing up to date info 56%
  ….then, way down the list…
• generate online sales 21% (wow!)
• generating leads 24%

Difficulty translating click to close for SMBs

For SMB sectors advertising will always matter! Persistent branding needs are a big part of their priority. I may not be able to measure the precise ROAS, but my customers know that my ad will always be on page x of the newspaper when they need me.

Many retail / service sector need a presence in market that extend throughout the funnel. At all points of sales consideration.

Digital WOM - ratings and reviews. WOM is public!

• The “AAA” SMB today and beyond. Everyone needs positive ratings. SMBs need help managing this!
  Scott comment: Many SMBs have no clue. Not sold in CPL method.
• 72% might use dealership web site, 58% will post comments (!)
• New Yahoo! Local site is geared towards more ratings!
  Closest and best govern Yahoo Local now, not “AAA Plumbing”

Why the sales channel matters

• Fit of online offering with current offering. Cant response response products with with reach products by adding a line item to the IO.
• No overnite transitions. Sales Force can expect channels to take a while. Take a lot of effort.
• Channel appetite for transparency. CPL/PPA requires a response orientation and tracking - sometimes it’s hard to get people to embrace this model of transparency.

Partial liveblog.

Wal-Mart buys no display advertising - they find no value. Interesting.

How do advertisers value clicks, calls, etc….

Lots of assumptions that people are rational… but it’s not true! “This is the way I do it.” We are not tracking marketers by nature!
On google 1/3 of bid have no strategy, 1/3 have flawed strategy, 1/3 have a decent strategy.

Ease of use will be a big factor. Even if the solution isn’t the “best”

Perhaps the tracking piece will be what differentiates the winner in the end?

Scott comment: Needs to be an extension to a CRM ..

Who is going to take on the role of educating small businesses?
(See show me the money panel)
Scott comment: yahoo ambassador / help on this?

A big chasm between lead sale and cost per action sale. Depends on sales teams doing a good job.

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One Response to “SMX Local / Mobile - The Ultimate Local Ad Model”

1. May
   21
   2008
   At 11:03 am MSFT Integrating CPA into Search « Screenwerk Says:

   [...] Among the several interesting things about the new program is the integration of a CPA model in search. Last year at the SMX Local-Mobile conference I asked the question whether CPA was the “ultimate local ad model.” [...]

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