Lem Lloyd’s Move to FixYa: Q&A Sites as Content Marketing

By: Peter Krasilovsky, 23 May 2013

People are getting excited about Content Marketing again this year, with Website, mobile and video editorial content, ratings and reviews, promotions and listings broadening the content farm/search ranking algorithms segment we saw several years go.

Q&A sites are a key component of the new content marketing, driving user-generated content, participation and sticky usage. A big believer in them is former Yahoo and Knight Ridder/Digital Cities exec Lem Lloyd, who has just joined Q&A site FixYa as Chief Revenue Officer.

Lloyd notes that FixYa, ,a company with Israel and Bay Area offices, has 30 million unique visitors in the U.S. and abroad, drawing real scale around “passionate” subjects ranging from high end auto repair to Dyson vacuum cleaners. A search on “brakes” in the Chicago DMA, for instance, got 52,000 searches. “They are devoted to the brands, and making (their products) work,” he says, noting that the site has “some of the highest CPC and RPM” in the industry.

Lloyd argues that while the content is brand-centric, it is also intrinsically local. The site is ultimately focused on local intent, he says. The next steps are to use the site’s 17 million questions to build “a scalable marketplace,” in part by syndicating the content to media sites, he says. Some of that effort will spring from the site’s analytics, which reveal what people are looking for.




Comment »

Video at Internet Week – GRPs Are What Count

By: Rick Ducey, 22 May 2013

ommavideo_small

This is “Internet Week” in New York City as MediaPost hosts a series of conferences on the heels of the the second annual Digital Content Newsfronts. This is the Internet industry’s answer to broadcast and cable television’s “Upfronts” where the major networks hype the new shows and build advertiser and agency interest in committing to making buys. Yesterday’s session focused on Internet video with a full day’s agenda packed with agency, interactive ad network, publisher and brand speakers. The bottom line, online video is a serious business at the national and regional level. For those selling online video to local accounts, the data coming out of yesterday’s session shows extremely strong validation for three things: (1) Online video works…to engage and give brand and sales lift; (2) traditional television is still the benchmark of excellence in video advertising; and (3) online video complements broadcast video to drive even higher lift.

Vinoo Vijay, EVP/CMO for TD Bank kicked off the day by highlighting an innovative online video brand campaign to drive the image of TD as a bank with “human values.” The successful online video campaign owed much to social media. As Vijay said, “If the videos are compelling, they will be shared. We figure people will find good stuff.” TD leverages their online video through Twitter, Facebook and their website. TD’s goal was to drive home their image as a bank that understands and cares about people. TD Bank finds online video to be an excellent investment to drive strong brand values for their “stores” (they prefer calling their bank branch offices “stores”).

comScore’s Josh Chasin, chief research officer, spoke to the issue of how to best measure cross-platform video campaigns. Joined by TVB’s Stacey Lunn Schulmann (chief research officer); Adam Shlachter, SVP Media, Digitas and Tony Jarvis, Olympic Media Consultancy, the answer clearly is some measure of Gross Rating Points (GRPs). That’s the easy part. The hard part is which of several definitions of GRPs to use. Nonetheless, GRPs are and will continue to be the essential metric for buying and selling cross-platform video.

Another panel considered the role of Real Time Bidding and programmatic buying in video, where some see a huge movement especially for pre-roll video. However, the panel including speakers from YuMe, TubeMogul and Lenovo, concluded that “context matters” and will trump RTB platforms. Premium video content establishes a context and value over and above the kind of value targeting by RTB and programmatic buy can offer.

What will online video look like next – is there room for innovation or is the sense that it’s better to standardize on fewer video ad formats? While there is strong support for going with standards, and notes of appreciation went IAB’s way for their leadership here, another panel concluded, “bring on the innovation.”  Speakers from AOL Video, VivaKi, Dynamic Logic, AdoTube, Innovid and Tribal while giving measured praise to the necessity of having some standards in video ad formats, the medium is too exciting to be stifled. Michelle Eule from Dynamic Logic in particular, spoke to the virtues of IAB’s new portrait video ad unit as a type of inventory that offered a lot of creativity and flexibility for agencies and brands.

BIA/Kelsey estimates local online video ad sales will grow at a 35% CAGR through 2017 to about $5 billion. Seeing the energy, commitment and excitement around online video cross-platform from speaker after speaker, we’re confident that the local online video market will benefit from innovations in ad units, measurement, successful case studies and of course, higher spending in online video as local businesses continue to get more experience with this ad format.




    Comment »

    Schedulicity Makes Case for ‘A-Comm’

    By: Peter Krasilovsky, 21 May 2013

    The scheduling space is heating up, with a number of key vendors competing for SMB business, companies such as Groupon and Merchant Circle acquiring and integrating scheduling companies into core activities, and new companies such as MyTime attempting to aggregate all the players.

    Bozeman, MT-based Schedulicity is one of the key players in the space, selling scheduling and related services for a range of $19.95 to $39.95 per month, depending on the number of users. The company has attracted “tens of thousands” of SMB accounts, booking 1.25 million appointments per month. This week we talked with CEO Joshua Spitzer was promoted to CEO. We talked to Spitzer this week about his vision for appointment- driven SMB commerce (or “A-Comm”)

    Spitzer’s first major development is the revamp of Schedulicity.com. In its new guise, it is not only a portal where people book local services, but one that also focuses on customer analytics and consumer discovery of new services. The discovery effort is a major initiative and was launched in late March.

    “We facilitate impulse purchasing of services,” says Spitzer. He notes that every person who books a service via Schedulicity is a potential user of the new portal, and is a strong potential customer of all.

    “If they used us to book a hair appointment, they may use us for their next massage or to book an appointment in another industry vertical,” says Spitzer.

    Meanwhile, Schedulicity’s development continues unabated, covering 60 verticals. Spitzer says the company remains focused on landing SMBs, which he says is always the hard part. A key part of its strategy is to work with third parties such as CosmoProf, a division of Beauty Systems Group, LLC for hair stylists.

    “Developing a valuable supply of appointments is difficult,” says Spitzer. “For starters, you not only have to sell to service providers, you have to change the way they do business.” But the ROI is proven – especially if they use Schedulicity as a promotional engine to help drive new customers for unfilled times.

    The company, in fact, has two promotional products that are the beginning of efforts to diversify revenue streams: “Pop Up Offers” allow the company to distribute last minute deals to replace cancellations, etc.; and “Deal Manager,” a self-serve product that enables merchants to run their own daily deal type promotions. Additional functionality will be introduced “later this summer.”




    Comment »

    New BIA/Kelsey Report Spotlights SMB Loyalty Programs

    By: Steve Marshall, 21 May 2013

    BIA/Kelsey recently published the second in a series of reports based on specific cuts of data from our Local Commerce Monitor research. LCM is BIA/Kelsey’s long-running study of how U.S. small business advertisers are evolving their use of media to acquire and retain customers.

    The second of these “Spotlight” reports focuses on small business advertisers that are operating customer loyalty programs. In LCM Wave 16, 40 percent of respondents reported having a customer loyalty program. (We provided respondents with this definition of a loyalty program: “[A] program in which you might offer discounts or special promotions to frequent customers.”)

    The LCM data shows that SMBs with loyalty programs are distinctive from those without such programs in several important ways:

    – SMBs with loyalty programs are vastly more engaged with their customers, across the board.
    – Loyalty programs are just as popular with SMBs that depend on customer acquisition as on customer retention.
    – SMBs with loyalty programs spend much more on advertising and web presence than those without them.
    – SMBs with loyalty programs appear to be very satisfied that the programs contribute to business growth.
    – SMBs with loyalty programs use more online services, and are more inclined to consider purchasing them from an advertising or marketing services provider.

      Future LCM Spotlight reports will address changes in media usage (including insight into new product adoption), customer engagement, sales channels and self-serve, and mobile, among others.

      BIA/Kelsey will be conducting the 17th Wave of LCM this summer, in time to inform the messaging at BIA/Kelsey’s Leading in Local: SMB Digital Marketing, coming up Sept. 11-13 in Austin, Texas.

      LoyaltySlide




      Comment »

      GrubHub, Seamless Merge; Mobile Drives Food Ordering Growth

      By: Peter Krasilovsky, 20 May 2013


      Photo: CNN

      Online restaurant ordering and discovery giants GrubHub and Seamless have agreed to merge their operations, creating a single company. Chicago-based GrubHub currently serves more than 20,000 food ordering establishments in 500 cities, while New York-based Seamless serves more than 12,000 food ordering establishments in 400 U.S. cities plus London.

      GrubHub CEO Matt Maloney, who co-founded the company in 2004, keeps the CEO job. Seamless CEO Jonathan Zabusky becomes president. Zabusky recently came on to spin off the operation from Aramark, the corporate catering giant.
      The two companies had been going head-to-head in a number of their markets. Both share a vision of the food ordering business being rapidly transformed via smart phone.

      We had an extensive discussion with Zabusky in March. At that time, he noted that Seamless had two million regular users and grossed $85 Million in topline revenues in 2012. It projects $100 million in top line revenue in 2013, with major growth seen in coming years.

      The company has had a strong foothold in the corporate market, providing food ordering and delivery to law firms, tech firms and investment houses. But its major effort has been focused on the consumer side, which has been experiencing year-over-year growth of 60 percent.

      The company has 300 people in three major offices, as well as field based sales. While it is best known for its strong business in Manhattan, where it recently opened a 28,000 square foot facility,, Zabusky notes that the company has a strong presence in 13 major U.S. markets. He added that Seamless had “a major national expansion strategy,” and was well-situated to execute it with a customer care center in Salt Lake City.

      The key to growth, said Zabusky, was to keep selling new products and features to its food establishment partners. “We don’t make money unless they make more money.”

      Zabusky noted that Seamless has been processing electronic order forms, and providing electronic terminals. plus table side ordering apps. Generally, its focus is to move restaurants away from fax machines, and away from phone calls and paper, which he says remains the segment’s biggest competition.

      With Seamless, restaurants move up to a “multi-platform portal,” where they could “view, confirm and track orders,” he said. Restaurants also leverage Seamless and its vast network for discovery and retention. For instance, it offers different deals on different days to keep customers coming back. “It is very different than the daily deals space,” he said.

      The industry’s transformation via mobile, however, is expecially key. Zabusky says it represents 40 percent of the total business, up from 10 percent a year ago. But for online food ordering, mobile doesn’t just represent a phone. The company’s best customers use the PC-based Web, phones and tablets, he says. “Thirty percent of the mobile volume comes from the iPad.”

      After the merger is completed, major competitors for the combined company will include Living Social, which has recently bet big on online food ordering; Delivery.com, which claims a roster of almost 10,000 restaurants in 50 cities; and Eat24.com, which covers 20,000 restaurants in 1,000 cities across the country.




      Comment »

      The Long Tail of Marketplaces: A Conversation with Rewarder

      By: Mike Boland, 20 May 2013

      I recently had the chance to sit down with Kendall Fargo, CEO and founder of Rewarder. Some of you may remember Fargo from his days leading StepUp Commerce, and early leader in what is now the growing area of real time retail inventory data (i.e. Retailigence). StepUp was acquired by Intuit in 2006.

      Fargo first founded Rewarder with the idea of democratizing and flipping the common practice of employer referral bonuses. When I say flip, I mean that job candidates can set bounties for referrals to open positions. That makes a lot of sense in a buyers (employer’s) market when jobs are scarce.

      “We were finding that people would put up offers that were equal to an entire paycheck,” said Fargo. This makes sense given how much job candidates will value job placement when they’re in that position. It’s their livelihood and thus something that is very price inelastic. So a marketplace was born.

      Fargo and team have since expanded the model in categories and functionality. It now stands as more of an open marketplace for what I’d generally describe as assistance in finding anything. Those things could be vacation tips, collectibles, expert advice in obscure areas an anything in between.

      A few examples the company gave me of real life success stories include:

      – Man looking for a video of a basketball game aired on ESPN 2 over 10 years ago (he played in the game)
      – Man looking for recommendations on social services to help an elderly neighbor
      – Man looking for someone to proofread his manuscript
      – Woman looking for a book from her childhood
      – Woman providing a travel itinerary for a 3 day trip to Nashville

      The way it works is like a reverse craigslist. Instead of a seller-initiated process of posting what is available. It is a buyer-initiated process of indicating demand and stating a bounty. If you think about it, that product model works better for long tail or obscure needs. And that’s one of the areas where Rewarder shines.

      This has attracted lots of experts on certain topics, giving them extra income and playing into their passion to exercise that knowledge. These “solvers” can monitor queries from “seekers” and even set up push alerts for new queries.  This makes it similar to Task Rabbit and Zaarly, but less task oriented.

      Rewarder works particularly well in categories for which the need is high and the solution is scarce. This causes price to be relatively inelastic for seekers, driving up rewards. The company benefits from this, as it takes a cut of the reward as a fee  for creating the marketplace and processing the payment.

      The time could also be ideal for Rewarder, given the growth of the “sharing economy” and mobility. The latter creates an environment where seekers and solvers in a time sensitive mode can realize more value in the product.  This is similar to the way that eBay has found lots of success in mobile.

      Rewarder is also generally interesting in that it solves some of the longstanding deficiencies of search — particularly in long-tail queries.  Rather than an algorithmic solution, it makes searching for scarce items more human-based and in that way sidesteps some of the technical challenges of natural language search.

      So far there have been  $14 million in rewards offered, 500,000 registered members and a 4x increase in users over the past 6 months. Each reward currently sees an average of 7 responses. We expect this growth will continue as virality is inherent in the product. We’ll continue to keep a close eye as this plays out.

      Update: Note that the registered user count has been updated from a previous typo.




      Comment »

      AnyPerk Expands Concept of Employer Driven Discount Clubs

      By: Peter Krasilovsky, 17 May 2013

      We like the idea of using corporations as a distribution base for media and services. In the 1990s, The Family Education Network built a great newsletter business distributed in corporate lobbies. The concept’s been widely extended with the addition of email and the ability to more effectively target employees based on different criteria.

      NextJump, for instance, has built a business providing discounts and deals sent out as part of employee communications. The deals are generally aggregated from other sources, but it can target the offers based on buying and browsing habits. It takes a commission from sales. The service is free to companies.

      Now we’re also looking at San Francisco-based AnyPerk, which shifts the employer shopping model to a premium offering, charging $5 a month per employee. CEO and Founder Taro Fukuyama tells us that the 15-person company — a graduate of Y Combinator — now has 2,500 companies signed up, distributing perks from 250 different marketers. Investors include Andressen Horowitz, SV Angel and a number of individuals, as well as Japanese-based funds .

      Fukuyama says that AnyPerk’s goal is to use its volume-buying capability to drive discounts of 5-50 percent. It proves its value as a consumer-centric service from the get-go, rather than serving the interests of merchants. “We do everything we can to save them more than $5 a month” he says.

      Typically, customers will start with 15 percent monthly discounts on mobile phones and services and work their way up to other products, specifically monthly utility products such as gyms, video services or rent. There may be 20 things you pay for every month, he says.

      Entertainment, especially, stands out. AnyPerk’s top products, in order, are fitness, entertainment, travel and cell phone. Among its perk providers are Verizon, AMC, Redbox, Regal Entertainment Group, Equinox, AT&T, Budget, Zipcar, T-Mobile and LA Fitness.

      Fukuyama, a native of Japan, tells us that employer shopping services are common in his homeland, where there are four major companies. But the concept is still relatively new to the U.S.




      Comment »

      Merchant Warehouse Moves up Value Chain From Payments to ‘Engagement’

      By: Peter Krasilovsky, 15 May 2013

      Payment processors and related companies work with most SMBs and are increasingly seen as a potential sales channel for reaching them with additional services. This week, we talked with one processor, Boston-based Merchant Warehouse, about its efforts to leverage its base of 75,000 business customers beyond terminal sales.

      CEO Henry Helgeson told us the 15 year-old, 300 employee company got its start selling terminals, but has seen strong growth in new products such as integrated coupons that anchor its “Genius” customer engagement platform. A horde of companies have introduced coupons, for instance, but many businesses have no idea how to redeem them, given the constraints of their existing POS systems, he says. The rising use of mobile phones for payments and promotions has made it an especially big issue.

      The move to integrate promotions such as coupons and a wide range of payment types into payment solutions has also changed how Merchant Warehouse works with its customers, which range from alternative payment companies such as LevelUp to value added resellers. “We are moving from working with tech teams to working with marketing teams,” he says.

      What has become increasingly understood is how complex it all is. Many businesses had hoped to have a single point of presence for payments, just as they similarly had hoped to have a single search engine and online point of contact in the 1997-98 time frame, he says.

      And as it turned out they had to work with 50 search engines and points of contacts, they’re beginning to see they have got to plan on working with a wide range of payment solutions. “They want one closed loop wallet. But there will be many, many wallets,” says Helgeson. There are 200 entry points in the POS value chain, he notes.




      Comment »