Driving SaleS growth WHITEPAPER for national BranDS

LoCaL WEBSItES: thE FIRSt StEP IN LoCaL WEB MaRKEtING MaRKEtING at thE LoCaL LEvEL IS a ChaLLENGE FoR NatIoNaL BRaNDS EXERCISE: DEtERMINING BRaND PERFoRMaNCE at thE LoCaL LEvEL WoRKShEEt: YouR BRaNDS LoCaL PRESENCE

LocaL Websites

PaPeR iNteNDeD FoR:

Buying Stage: Investigation audience: Responsible for Corporate Marketing at National Brands FocuS: Local Website Strategy & Education (what, how, why) Exercise for Determining Local Marketing Presence Role: Decision Maker Influencer

Local Marketing. Automated.

WHITEPAPER
Driving SaleS growth for national BranDS
EXECutIvE SuMMaRY MaRKEtING at thE LoCaL LEvEL IS a ChaLLENGE FoR NatIoNaL BRaNDS GRoWING IMPoRtaNCE oF DIGItaL MEDIa IN LoCaL MaRKEtS thE ShIFt FRoM tRaDItIoNaL to oNLINE MaRKEtING thE LoCaL WEB LoCaL WEBSItES: thE FIRSt StEP IN LoCaL WEB MaRKEtING autoMatING LoCaL WEBSItES CoNCLuSIoN EXERCISE: DEtERMINING BRaND PERFoRMaNCE at thE LoCaL LEvEL WoRKShEEt: DEtERMINE YouR BRaNDS SEaRCh REaL EStatE aBout BaLIhoo 1 1 2 2 3 3 4 4 5 9 11

executive SummaRy

The Internet and its mobility have fundamentally changed marketing. Over the past decade, websites have become the hub for all marketing activities, i.e. the centralized landing pages through which all tactical programs both online and offline can be driven, tracked and measured. Mobile phones will soon overtake PCs as the most common Web access device worldwide. And within the last two years, local marketing has emerged as the next big frontier in effective demand generation. For national brands, having a local presence online is now imperative to ensure that the consumer can find their resellers at the local level. Local websites do this they are the first step required for national brands to build a local market presence. They ensure search engines direct customers to the right place at the right time; they make sure local reseller messages are consistent with national campaigns; and they guarantee customers arent routed to the competition. This paper explains how national brands can use local marketing automation to create and implement local websites, and in turn: Drive top-line growth and market share Leverage the growing importance and strength of local markets Maintain control of their national brand further down the sales cycle Increase ROI of marketing expenditures

maRketing at the local level iS a challenge FoR national BRandS

For the majority of national brands who sell through local outlets, local marketing is a highly under-served marketing channel. Brand marketers spend millions of dollars nationally both online and offline to build brand awareness, interest, consideration and preference of the consumer, with consistent messaging that builds across multiple touch points in the cycle. However, when it comes to marketing at the local level, where final preference and purchases actually occur, national brands often lose control of the brand message and the effectiveness of their marketing dollars. The reasons national brands struggle with local marketing are varied, but they fall into 3 categories: Reliance on affiliates and Partners National brands typically have to rely on affiliates or channel partners to execute brand marketing at the local level. This is problematic because whenever responsibility is placed on separate entities to finish-out marketing programs, it has a negative impact on program adoption, quality and effectiveness. Local-level partners are often either business owners who are timeconstrained and not focused on marketing or a reseller who also sells competing brands. If a national brands programs are not extremely easy to implement, they often get completely ignored by partners. complicated customization and management - Local marketing requires customization of messaging and graphics across a growing number of mediums at a highly localized level often across hundreds of cities with multiple outlets in each one. Without technology, its simply not cost-effective for a national brand to modify and manage all of these elements at a local level. difficulty measuring Roi - National brands typically have to rely on sell-through or order data from affiliates and partners to gauge the impact of local marketing efforts, and this data is typically unreliable and dated. Without good visibility into the ROI and effectiveness of local programs, its difficult to justify spending.

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

The disconnect between national and local marketing is particularly interesting when one considers that local marketing is the last mile of marketing i.e. communication a potential customer receives when they are at their closest point to making an actual purchase decision making it highly relevant when it comes to converting consumers with purchase intent into buyers of a brands products. There is no doubt that by finding a way to close this gap, brand marketers can significantly improve leads and sales at the local level and increase the brands top-line revenue.

aVeRaGe soURces UseD

AVERAGE SOURCES USED AVERAGE USAGE

17%

10.4 9% 5.27

gRowing imPoRtance oF digital media in local maRketS

2010

2011

2010

2011

Within the last two years, local marketing has emerged as the next big frontiers in effective demand generation. As partial proof, Google recently announced that over 2.8 billion searches a month have a local intent.

SouRCE: GooGLE/ShoPPER SCIENCES, ZERo MoMENt oF tRuth MaCRo StuDY INDuStRY StuDIES, u.S., aPRIL 2011

FIGuRE 1

the ShiFt FRom tRaditional to online maRketing

When it comes to what works at the local level, the importance of online vs. traditional marketing is shifting. Digital media is growing exponentially and is expected to represent 23.6% of advertising spending by 2015. And with that growth, the way consumers are buying is changing. From 2010 to 2011, the number of sources used by consumers in making buying decisions increased from 5.27 to 10.4. (see Figure 1) Consumers are embracing the many sources of information and including them in their investigation process. (see Figure 2) And increasingly, theyre accessing them while on the go. Gartner predicts that by 2013, mobile phones will overtake PCs as the most common web access device worldwide. (Gartner, 2010)

eVoLUtioN oF MeDia

FIGuRE 2

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

the local weB

All of these new digital outlets for marketing and accessing information make up The Local Web, an integrated growing ecosystem of online media channels that collectively drive online local marketing. (see Figure 3) National brands must claim and at least minimally participate in the majority of the Local Webs integrated channels or risk being invisible in local searches. So how does a national brand begin to take advantage of the Local Web? The first step is by creating and implementing local websites for their local resellers. Local websites are at the heart of the Local Web.
tHe LocaL Web

DAILY
MEDIA
WEBSItES
SOCIAL

DEALS

LoCaL

BASED
LOCAL

LOCATION

MOBILE
SEARCH

REVIEWS

LOCAL
FIGuRE 3

local weBSiteS: the FiRSt SteP in local weB maRketing

Local websites serve as the centerpiece, or hub, for all local marketing tactics both online and offline. They are smaller variations of a national brands corporate website, carrying through the brands image and messages. They allow the national brand and its local resellers to be found at the local search level. Local websites function as centralized landing pages through which all of the local marketing tactics can be driven, tracked and measured. While there are other Local Web elements that are important to take advantage of sooner rather than later, its necessary for local websites to be in place first. local websites can take multiple forms. here are three examples:

WHITE PAPER

Request the local web: the linchpin to Successful local marketing whitepaper at:
Balihoo.com/local-marketing-resources

Balihoos whitepaper the local web: the linchpin to Successful local marketing explains the elements of the local web and provides a high-level view of the impact each element can have on improving local marketing.

Co-branded affiliate sites with each of the brands agents, distributors, dealers, etc., which allow all partner/affiliate locations to show up individually in location searches and maps City sites focused on the corporate brand, which enable all of the brand locations for that city to be listed in a single spot, and for the nationally branded site to be found in organic search listings for the city Promotional sites which enable a brands new offers or products to be found in organic searches in each relevant city

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

A brand might choose to implement one type of local website or all of them simultaneously in order to ensure their products and resellers are always found in local searches. For example, a manufacturer of utility sheds might sell the sheds through 1,000 resellers including national home improvement stores, local mom-and-pop hardware stores, and local remodeling contractors in 300 different cities. to ensure their products are always found at the local market level, they might set up: 1,000 co-branded reseller/affiliate sites that link to each and every resellers website 300 different city sites that list all their partners in a given city 300 promotional sites (one per city) per quarter to promote their most important offerings All these local website variations will ensure the manufacturers brand and resellers are always found at the local level by customers who are looking to buy a utility shed, regardless of whether or not a reseller has a good web presence or might be promoting a competitors similar product at the time. For national brands, relying on resellers to help implement such a large number of local websites would not be feasible, but its possible to scale to this level using local marketing automation.

automating local weBSiteS

Marketing automation makes implementing a large number of nationally branded local websites easy. First, brands build and offer local website templates to their affiliates and resellers, providing them with as many, or as few, customization options as they choose, and a brand message appropriate for each regions local presence. Then, using automation, its possible to launch hundreds or even thousands of sites simultaneously. When its time to make campaign updates, with the same effort it would take to update one site, hundreds of sites can be updated simultaneously. automation of local websites enables national brands to: drive top-line growth and marketshare by ensuring that a brands products, services and dealers can be found locally and influencing the customer experience closer to the point of purchase. increase Roi of marketing expenditures. Automated local websites offer a simple way for resellers to engage in marketing with a national brand they can even be implemented without any direct effort by the reseller. This helps increase reseller participation in marketing programs, resulting in more leads being driven to the reseller. maintain control of their brands image and message further down the sales cycle while driving leads to local resellers. more efficiently manage reseller marketing programs. Automation enables brand updates and promotions to be quickly and easily disseminated across all websites, to all markets, at once. track and measure Roi at the local reseller level. Local websites provide outstanding, measurable performance as a landing page for digital marketing efforts, such as pay-per-click (PPC), email marketing and banner advertising.

concluSion

Without effective local marketing strategies that take advantage of the Local Web (i.e. the integrated growing ecosystem on online media channels), national brands risk losing visibility and sales at the local level. Local websites are a strategic way for national brands to combat this problem. They are the hub of the Local Web and the first step in building a local-market presence. And with local marketing automation, they can be implemented efficiently and cost-effectively.

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

exeRciSe: deteRmining BRand PeRFoRmance at the local level

Any brand can get a gut check on how well their marketing is performing at the national and local levels through an easy exercise. The objective of the exercise is to determine the percentage of real estate your brand and product categories own or strongly influence on Page One of search engine results pages (SERPs) in brand name searches and in searches with local intent. The higher the percentage, the better your brand is performing. We will start with an example and then provide you with a worksheet for your own brand calculation. example: how to check your local marketing visibility In this example, well use a Converse brand, Chuck Taylors, as the brand, and basketball shoes as the product category were measuring. Google will be the search engine. The search will be performed on a laptop. The city we will be searching in is Boise, Idaho. We will run the three searches listed below and determine the results. 1. Brand Name Search (Chuck Taylors) 2. Brand Name + City Search (Chuck Taylors, Boise) 3. Product Category + City Search (Basketball Shoes, Boise) For each search, we will determine the results for Paid opportunities, local listings (e.g. google Places) and organic Search by counting the number of times the brand shows up in the results for each of those areas and dividing by the total number of results returned for each area. The results for our Chuck Taylors example is shown on the following pages.

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

exeRciSe: deteRmining BRand PeRFoRmance at the local level

bRaND NaMe seaRcH (eXaMPLe)

chuck tayloRS

seaRcH ResULts:
Search Results Paid Opportunities Local Listings Organic Listing Total Search Real Estate total 5 0 11 16 your Brand owns or influences 5 0 11 16 your Brand Results 100% 0% 100% 100%

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

exeRciSe: deteRmining BRand PeRFoRmance at the local level

bRaND NaMe seaRcH + citY seaRcH (eXaMPLe)

chuck tayloRS + BoiSe

seaRcH ResULts:
Search Results Paid Opportunities Local Listings Organic Listing Total Search Real Estate total 1 0 10 11 your Brand owns or influences 1 0 1 2 your Brand Results 100% 0% 10% 18%

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

EXERCISE: DETERMINING BRAND PERFORMANCE AT THE LOCAL LEVEL

PRODUCT CATEGORY + CITY SEARCH (EXAMPLE)
BASKETBALL SHOES + BOISE

SEARCH RESULTS:
Search Results Paid Opportunities Local Listings Organic Listing Total Search Real Estate Total 2 0 10 12 Your Brand Owns or Influences 0 0 0 0 Your Brand Results 0% 0% 0% 0%

The results of our example show that Chuck Taylors performed well in the broad search for the brand name, garnering 100% of the paid and organic listings. However, searches at the city level for both the brand name and product category were dismal at only 18% and 0%, respectively. Its also worth noting that the local results returned in all three examples were 0% each time. Ideally, instead of no listings, the top retailers who sell Chuck Taylors would show up in Google Places listings. These results are fairly typical for national brands. But by shifting a relatively low level of resources and budget to local marketing, brands will see a dramatic, positive shift in their local marketing results. And by implementing a local marketing automation solution to ensure local partners are found and actively marketing the brand, channel organizations will quickly see measurable increases in channel program ROI.
Driving SaleS growth for national BranDS

woRkSheet: deteRmine youR BRandS SeaRch Real eState

Use this worksheet to gauge the local marketing visibility of your own brand. note: you may want to run the results multiple times for different brand names, product categories, market segments and cities in which you play. For example, in the chuck taylors exercise, the exercise could also be run for chuck taylor, converse chuck taylor, converse, Jack Purcell and converse hoodies. instructions For each search outlined below, run the search and tally the results in the corresponding spreadsheet before moving on to the next search. Follow these three steps for each: 1. For column a, count up all of the results that show up for each of the Paid, local and organic search areas, regardless of if they relate to your brand or not, and enter them in the appropriate row. Add the numbers in Rows 1, 2 and 3. Enter the total in Column A, Row 4. 2. For column B, count up the results that relate solely to your brand within each of the search areas (i.e. Paid, Local and Organic). These can be your national brands paid ads or search results, ads paid for by your partners, local listings for your partners, and/or directory listings (such as Yellow Pages) or web pages for you or your partners, as long as they clearly relate to your brand. Enter the results for your brand in the appropriate row under Column B. Add the numbers in Rows 1, 2 and 3. Enter the total in Column B, Row 4. 3. For each row within column c, divide the number in Column B by the number in Column A. The results in Rows 1, 2 and 3 are the percentages of real estate your brand owns for each respective search area Paid, Local and Organic search. The results in Column C, Row 4 are your brands total results, or real estate, for Page One of that particular search. The higher the percentage, the better.

iNstRUctioN saMPLe

SteP 1 column a

SteP 2 column B
your Brand owns or influences 1 +0 +1 2

SteP 3 column c
your Brand Results 1 2 = .5 or 50% 0 4 = 0 or 0% 1 10 = .1 or 10% 2 16= .125 or 12.5%

Search Results

total 2 +4 +10 16

Row 1 Row 2 Row 3

Paid Opportunities Local Listings Organic Listing

Row 4 Total Search Real Estate

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

bRaND NaMe seaRcH youR BRand

column a
Search Results total

column B
your Brand owns or influence

column c
your Brand Results

Row 1 Row 2 Row 3 Row 4

Paid Opportunities Local Listings Organic Listing Total Search Real Estate

bRaND NaMe seaRcH + citY seaRcH youR BRand + any city in which youR BRand iS Sold
column a
Search Results total

column B
your Brand owns or influence

column c
your Brand Results

Row 1 Row 2 Row 3 Row 4

Paid Opportunities Local Listings Organic Listing Total Search Real Estate

PRoDUct cateGoRY + citY seaRcH youR BRandS PRoduct categoRy + any city in which youR BRand iS Sold
column a
Search Results total

column B
your Brand owns or influence

column c
your Brand Results

Row 1 Row 2 Row 3 Row 4

Paid Opportunities Local Listings Organic Listing Total Search Real Estate

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

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aBout Balihoo

Balihoo is the premier provider of local marketing automation technology and services to national brands with local marketing needs. Balihoo enables enterprise-class marketing at the local level and gives national brands full visibility into all local marketing activities and results. Providing a combination of web-based software and services, Balihoo enables national brands to dramatically reduce marketing expenses and immediately increase local sales revenue. For local affiliates, Balihoo takes the complexity out of local marketingmaking it easy to quickly implement an expert, integrated marketing strategy that is consistent with the national brand. Let Balihoo help your brand assess its online local marketing effectiveness.

Local Marketing. Automated.

866-466-9914 sales@balihoo.com Balihoo.com @Balihoo

2011 Balihoo, Inc. All rights reserved.

DRIvING SaLES GRoWth FoR NatIoNaL BRaNDS

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