As we’ve speculated, one way mobile marketing could begin to take off is Google’s possible integration of an option in the AdWords work flow that allows marketers to specifically target searches done on iPhones. The first signs of this are beginning to be seen. According to Adweek:

In meetings with agencies, Google has presented a new option to show different ads in response to searches made from iPhones. The change, expected to be implemented shortly, means advertisers will be able to create an iPhone ad group as part of their regular search campaign, according to agency executives briefed about the modification.

Currently, some Google sponsored links can be seen on the iPhone because its Safari mobile browser shows a version of the Web similar to that viewed on a desktop (albeit smaller and without Flash). The prospective difference here is that ads can be created that are more conducive to the mobile use case. Calls to action, for example, can be modified to focus on calls rather than clicks (or links to local maps).

The challenge will be figuring out where to put these sponsored links (if that is indeed the form they will take). Currently Google searches on the iPhone return links that are mostly organic. Sponsored link real estate is limited and the “below the fold” inventory challenge is increased by a small screen (screen shot from my phone below).

That aside, it’s a logical move because iPhone users have shown heavy search volume and are also a very attractive, buying-empowered and fashion-forward segment. This should get the ball rolling for brand advertisers and agencies to adopt mobile into their marketing mix.

This could also be a precursor or a test bed for the mobile marketing that Google will invariably serve on Android-based devices — both search, display and other clever integrations that we haven’t seen yet.

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Aside: For iPhone users, I just discovered a nice feature that lets you take a screen shot of any page you’re on. Just click the home button and the power/sleep button at the same time. A jpeg of that screen shot will be placed in your camera roll.

Quite a few notable findings in TMP Directional Marketing second annual Local Search Usage Study, which it unveiled today, among them a slight shift in users’ preferred medium for conducting a local business search.

Last year’s report had print Yellow Pages slightly ahead of search engines – 33 percent vs. 30 percent — while this year search engines topped PYP by a slim 31 percent vs. 30 percent. This one-year decline does add a data point to support the notion of a general shift in how users find local businesses. In 2007, 67 percent said they used print Yellow Pages less than once a week, which grew to 72 percent in the new study. The study also showed the number reporting “ownership” of a print Yellow Pages directory dropping from 89 percent to 86 percent. So while declining, print does remain a key part of the usage mix.

Some of the key themes emerging from the study include a clear connection between online research and offline purchase. When asked what they did after searching for a business online, 39 percent said they called a business, while 32 percent said they visited the store in person. Only 12 percent said they planned to contact the business online, down from 15 percent in 2007.

The TMP/comScore study also found that the number who said they made a purchase following an online search declined in 2008 from 61 percent to 52 percent. Between Internet Yellow Pages, local and general search, IYP had a slight edge in driving purchase behavior in 2008, with 55 percent making a purchase (in person, online or via the telephone), compared with 54 percent for local search and 50 percent for general search, which reflects the conventional wisdom that IYPs and local search sites are used closer to the purchase decision, while general search is used higher up the purchase funnel.

The study also found that mobile local search is becoming a significant factor, with 21 percent of consumers with an Internet capable phone using it to conduct a local business search. Satisfaction with the local mobile search experience was about as high as with online directories and print Yellow Pages (77 percent vs. 82 percent and 73 percent, respectively).

Here is the quote from TMP’s press release:

“As consumer local search grows with online and offline resources, national advertisers must develop strategic plans for integrating the various mediums into their national programs,” said Gregg Stewart, senior vice president of interactive, TMPDM. “Our 2008 study again confirms that consumers do a majority of research online, but continue to make purchases offline with a phone call or in-store visit. Additionally, marketers need to pay close attention to mobile search and sites that offer consumer user reviews, as they are growing in popularity.” 

A quick note about comScore’s methodology: The research combined survey responses with “actual observed online behavior.” The survey sample is 3,000 completed online surveys from users of online local business search. The survey took approximately 15 minutes to complete. This year’s survey was conducted in July. The 2007 survey was conducted in May.

Web.com has been busy cutting deals recently. In the past two weeks, the provider of Web site creation and hosting services, search engine optimization and lead generation services to small businesses has announced it is working with MerchantCircle (see post here) and, as of yesterday, home improvement icon Bob Vila.

With regards to the Bob Vila deal, Web.com will help drive leads to local home improvement contractors through the following URLs: BobVilaContractors.com, Leads.com and RenovationExperts.com. Essentially, Web.com is enabling these other URLs with the same process that it has been offering SMBs via Leads.com for many years now. Through the deal it is now more visibly stepping into the competitive and increasingly crowded home improvement field with the likes of ServiceMagic.

Web.com’s Tobias Dengel spoke at The Kelsey Group’s DMS ‘08 conference in Atlanta last month on our panel regarding strategic pricing. With all the talk of pay-for-performance in the industry today, Web.com has stayed firm on its decision to offer flat-rate pricing via a solution that bundles numerous products (SEO, search engine marketing, lead generation, Web site hosting, etc.) that are trackable and measurable. The growing company, which has roughly 300,000 paid subscribers, understands that an SMB’s bottom line is generating new business and these recent deals are all about that. 

At J.D. Power and Associates’ Automotive Internet Roundtable in Las Vegas this week, several speakers said they believe mobile search and services are an increasingly important part of auto marketing — assertions backed up by J.D. Power research showing that 18 percent of auto shoppers use mobile during the car buying process, up from 15 percent in 2007. The same research said mobile use was especially strong for luxury brands such as Land Rover, Mercedes and Jaguar.

Mike Sage from Universal City Nissan said he’s incorporated mobile into his marketing mix, and now has 600 text messages flowing back and forth between dealer and customer every month, including text, video and click-to-call. “It doesn’t replace the Web site, but it is another source of information,” he said.

Sharon Knitter, the longtime Tribune Internet executive who now runs the mobile program for Cars.com, said the company launched mobile in 2007 with the twin goals of extending the Cars.com brand and delivering “best of” content.

The mobile site receives four million page views per month, and is growing 10 percent to 15 percent per month. People are using the site when they are out shopping, she said. “They used to see a new model, and then have to go home to look it up on the computer.” Now, 39 percent call right from the lot, and 40 percent use click-to-call. Mobile is also used by dealers to send information to customers. “They say ‘give me your cell number’ and send them information right there.”

A webinar put on this morning by BIA Financial Network (The Kelsey Group’s new owner) delved into the main trends that are lining up to make mobile TV a reality.

One enabling factor, for example, has been the growth of mobile broadband such as 3G networks. This is analogous to the broadband penetration that has made online video explode, and to the next generation fiber networks that will bring us IPTV.

“Bandwidth has changed things quite a bit in mobile telephony,” said BIAfn Chief Strategy Officer Rick Ducey. “Television is becoming a wireless medium for the first time.”

Building a Model

Parallel pushes are happening in mobile with better smartphone penetration and device standards (i.e., iPhone) and higher consumer comfort levels — all of which are bringing mobile video closer to reality. Following behind these trends will need to be broadcaster and advertiser adoption.

“The technology infrastructure is in place,” said Ducey. “Business models are aligning and the possibilities for growth in mobile marketing are there.”

BIAfn forecast the opportunity to be $2 billion in annual revenues, based on delivering content to the incremental eyeballs that will view mobile video content. This consists of $900 million for TV networks and syndicators, and the remaining $1.1 billion for local broadcasters.

So far we’ve seen mobile television manifest largely in the content offerings of major carriers such as Verizon’s V Cast and Sprint TV. These have programming arrangements directly with content networks like Fox Sports and CNN — deals that have been necessary to bring this content to market.

But going forward, an interesting dynamic will be led by the Open Mobile Video Coalition, which consists of 800 television stations forming common standards to deliver direct video feeds to not only cellphones but also laptops, portable media devices and in-car systems (projected to be the largest source of nodes among these). The move to digital broadcast standards will enable all this.

“Mobile can be the third leg of a stool in the digital proposition for broadcasters,” said OMVC Executive Director Anne Schelle.

Good Things Come in Threes

Overall, the opportunity comes down to the three-screen strategy we’re hearing more and more about from the likes of AT&T. A continuity of services has the appeal to attract and retain users while creating unique revenue opportunities for carriers that broaden their “ownership” of the network.

“If everything is Internet based, and that’s the way it’s starting to be, can’t we get one subscription across television, mobile and Internet?” posed Ducey. “The technology is there and what’s being developed are the business models and implementation to bring it to the marketplace.”

There will be lots of moving parts such as subscriber revenues and ad support, involving a host of ad networks like AdMob. Another opportunity on the local level will involve the growth expected in mobile local search and location-based services, as we’ve examined and as supported by recent eMarketer data.

But for mobile TV and its opportunity for broadcasters, a key point is that carriers will partner rather than build to obtain the content and distribution channels they need. Their longstanding closed networks have been eroded to some degree by mobile search technologies and the partnerships we’ve seen with the likes of Google (Android) and Apple (iPhone).

A similar dynamic will occur with the development of mobile TV delivery platforms, opening lots of opportunity for broadcasters, and media companies with existing video content and distribution assets.

Good2gether is a little known company that has begun to work with online newspapers to create new “channels” that bring together nonprofit organizations and the individuals looking to donate their time or money.

This is essentially a section within an online newspaper that allows users to search and browse listings for nonprofit donation or volunteer needs. Think of it like a classified marketplace for nonprofits.

The idea started when founder and CEO Greg McHale was looking for nonprofit organizations to get involved with in the aftermath of hurricane Katrina. What he found was little structure to a vast array of options.

“There are a million-and-a-half nonprofits in the U.S.,” he said. “A lot of these are undiscoverable unless you’re already involved with them in some way.”

Making It Work

Right around that time, McHale started to recognize newspapers as a natural venue to bring together nonprofits with the support they’re looking for. Newspapers not only have lots of original reporting on topics that are contextually relevant for relief organizations (especially these days), but they’re also trusted local voices with engaged local readers.

“Newspapers are filled with articles every day that really ought to be calls to action for nonprofits,” he says. “Just like Tip O’Neill said that all politics are local, so are nonprofits.”

So good2gether was born and has been able to sign deals with a number of online newspapers including Boston.com and SFGate.com (full list here). Newspapers love it, McHale claims, because it creates more online content and thus ad inventory.

These marketplaces are set up in the newspaper domains as “do good channels” (example here). They’re free for nonprofits but supported by sponsored ads from corporations that are looking for “green” ad inventory.

“If Wal-Mart or Home Depot or any other corporation wants to improve their image and advertise in green places, this becomes an ad network for them to do that,” he says.

Nonprofits themselves meanwhile like it because it brings technology into the fold. Nonprofit Web sites often lack functionality and search engine optimization, so this gives them more technological muscle to support their recruiting and fund-raising.

“One of the things we do is have listings disappear from the public facing site after an event expires,” said McHale. “Nonprofits see this and they think we invented fire.”

Looking Forward

There is lots more functionality in the pipeline and more local distribution sources being developed beyond newspapers, such as radio and television Web sites. The company will also develop widgets, RSS feeds and e-mail alerts for users to plant on their own sites or blogs to keep themselves or their readers abreast of new opportunities in real time.

Lastly, the site will start to branch out from just listings to have more content that serves as an educational resource for finding the right nonprofit. This could resonate well, given the sheer mass of nonprofit organizations and the lack of transparency that drove McHale to get started in the first place.

“This could be a giant marketing platform for nonprofits,” he says. “We’ll start with newspapers and keep rolling to see where else it takes us.”

(click image to expand)

J.D. Power and Associates’ annual Automotive Internet Roundtable is being held in Las Vegas, amid an industry that is being especially hard hit by the credit industry. A bunch of dealers at breakfast this morning estimated that “90 percent to 95 percent” of their sales are made on credit, and not much is going through right now. Sales themselves have shifted dramatically with gas prices, with cars — especially low-margin compacts — now outselling high-margin pickup trucks by a substantial amount.

J.D. Power VP Gene Cameron put a positive light on the situation. “It is a good thing when a tribe gathers when there is stress in the culture. We have some stress, don’t we?”

The tough times could augur well for the more efficient marketing power of the Internet, and mobile. Or it could go the other way, as many dealers still think of the Internet mostly in terms of buying leads — and not always very good ones at that. One dealer told me he is cutting back his leads, and finding newspapers and TV more attractive again — especially as other dealers drop out. He says he gets more attention with less clutter, and can negotiate better deals.

J.D. Power itself has concluded that dealers are “reining in” online spending, in line with other cutbacks. But certainly, the Internet is not just going away. In fact, its growth marches on. Every sign here is that the Internet — an umbrella term for third-party sites, portals, OEM (manufacturer) sites, paid search and lead providers and e-mail — is now an entrenched part of the auto ecosystem.

Most importantly, J.D. Power says the use of the Internet in car shopping has hit 75 percent of all shoppers — the biggest leap ever, with a 5 percent boost from 2007. “Finding the right vehicle is more important than the right price,” notes Cameron. Mobile also grew this year, with 18 percent now using mobile to look up auto information in some form — especially for luxury brands.

The bigger question for the 800 dealers and OEMs registered for this event is: What works on the Internet? Ratings and reviews are generally cited. J.D. Power says 63 percent of car shoppers are accessing vehicle ratings, and 38 percent are checking out dealer ratings. What doesn’t work, however, are request for quotes, whose use among shoppers is down from 31 percent in 2007 to 28 percent.

“The system is broken and shoppers know it,” says Cameron. According to J.D. Power’s stats, 50 percent don’t want to be contacted, and 29 percent say the information they get is not accurate.

Alternatives to lead submissions are emerging. Anna Zornosa, executive VP and GM of Cobalt’s Dealix, says its Dealer Select platform adds phone numbers and other pertinent information to let shoppers make their own connection. “A certain type of new car buyer likes that approach,” she says, noting that the 30 percent who submit RFQs may be in the minority but they aren’t peanuts. “It represents another channel.”

“Whatever you do — shopping or browsing — you devalue other activities,” she points out.

Cars.com, meanwhile, continues to deemphasize leads and focus more on content. “A lead is sold three to four times,” says CEO Mitch Golub. But with Cars.com’s site for new cars, a lead is sold only once. “The business model needs to sort themselves out,” he says. He especially expressed interest in mobile, noting that 30 percent of visitors to Cars.com’s mobile site are new to the company.

AutoTrader.com has traditionally staked out a position as leading advocate against paid leads. “The biggest thing people want is inventory,” says CEO Chip Perry, and this is borne out by J.D. Power stats.

It never changes. “In 1998, 80 percent of people picked up the phone or visited,” says Perry. “In 2008, 80 percent of people pick up the phone, do e-mail or visit,” he says. “That doesn’t argue for pay-per-call or pay-per-click. It argues for a subscription-based model.”

But on the dealer and OEM side, there is more confidence in leads, via search, as part of the solution. GM has enlisted 6,000 dealers with Cobalt for “trickle-down paid search” coming from the OEM and dealer association level to dealers. Toyota has done the same in partnership with DoubleClick.

“Same-store leads are up significantly,” notes GM VP Ed Vogt.

As a result of its partnership with Microsoft last October, Facebook has integrated a Live Search box that lets users search the Web in addition to searching within Facebook’s own walls.

This can have some unique local benefits, according to the Facebook blog:

By integrating web search into Facebook, you can increase the information available to share with your friends, family and coworkers on the site. For example, your friend may invite you to an event at a new restaurant. Without leaving Facebook, you can check out the details of the restaurant on the web.

These searches would seem to open up more opportunities (inventory) to serve local ads from Facebook’s SMB ad programs, which were discussed by Facebook’s VP of operations, Chamath Palihapitiya, at TKG’s ILM:07 conference.

In the meantime, Live Search ads have already been served throughout Facebook for larger advertisers, via adCenter. The addition of Web search offers additional context and inventory — through search volume — to serve ads within the social network.

The fusion of search and social networking also raises the potential for qualifying search traffic and inventory based on the dynamics of a social network. In other words, this viral environment and people’s influence on one another can be used to qualify inventory. This isn’t an explicit part of the Live Search integration, but it could be coming soon. Google has already begun to talk about doing something similar as part of its Open Social initiative.

Serving ads within social networks has been a tough nut to crack. But we’re seeing lots of experimentation and getting closer to some answers.

We knew it was coming. Mozilla just announced a Firefox add-on that will let the browser know your location. It will be called Geode, and we have word that it will use the Wi-Fi positioning technology of Skyhook Wireless (same used in the iPhone, along with GPS).

This release essentially allows developers to experiment with location awareness before it is bundled into future versions of Firefox. Users can also begin to see what its capable of by downloading Geode and testing it with a sample “food finder” application.

What It Means

Location awareness capability could enhance lots of local search applications by automatically or “passively” serving search results based on where you are. This could be valuable for individuals who are traveling and don’t have to indicate where they are in order to get relevant results.

Beyond search (pull) it could also be used for better geotargeting for display ads. This is compared with the current state of the art, which relies on IP-based targeting — at the city level and often unreliable. Better location awareness baked right into the browser could enable more relevant banner advertising for stores or services that are down the street.

The next step will be to utilize this location awareness backbone to serve rich media ads that let users interact with trackable promotions for actual store locations that they are more likely to visit (i.e., close by). This will enable national or brand advertisers to better support their store locations, in line with the ROBO (research online, buy offline) phenomenon that is slowly gaining awareness.

We’ve seen a few companies work on the concept of serving better content and ads based on location awareness, such as Placecast and Yahoo’s Fire Eagle. In some ways it’s the right time for this, as the development of the iPhone has gotten the market warmed up to the concept of local search tools improving based on knowing where you are.

Users First

Like many other things, this user comfort level and adoption is the first step. It will take longer for brand advertisers and agencies to follow and catch on to this opportunity. But the technology is now there. In the meantime, it will serve a more user-centric purpose in making local searches easier.

Even on that measure, location awareness in the browser is just the foundation; local search engines and ad-serving technologies will have to do some work in tapping into it and spinning out products that are based on it, before we see the real killer apps.

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A TKG report in the works will examine location awareness as part of the local search experience and ad-serving picture.

Krillion announced today that it will productize its “find in store” functionality into a more succinct package for product search sites to use. This will include easier integration into Web sites; an interface that puts product pricing, availability and reviews all in one window; and additional features such as recommended substitutes for out-of-stock products.

The company has specifically designed this with manufacturing sites in mind — which it claims make up the bulk of online product research destinations. Right now, however, manufacturers are dropping the ball by giving detailed product information but no information about where to find items locally (or how many are on the shelf).

This logic was behind Krillion’s recent partnership with Panasonic. At that time, CEO Joel Toledano told us he has his sights set on more manufacturer sites, given the above realities combined with data that show 55 percent of online shoppers prefer to pick up items locally. The new enhancements should help the company get there, and we’ll find out soon the manufacturers with which Toledano is talking.