A BIA/Kelsey Webinar Thursday, October 15

The Business View ofE-Mail, Reputation andPresence ManagementPart 2: InterviewsA BIA/Kelsey WebinarThursday, October 15thProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.0

Interactive Local Media ConferenceDec. 9-11, 2009 at the Hyatt Regency Century Plaza, Los Angeles, California ILM is where the local online media community gathers to learnwhat's working, make connections and conduct business. According to the latest wave of BIA/Kelsey’s Local Commerce MonitorStudy, 77 percent of small and medium-sized businesses now includedigital/online advertising in their marketing mix. At ILM:09, we willfocus on how local media companies are helping SMB advertisersmanage their online reputations and maximize their onlineinvestment. Attendees are a global audience of executives responsible forcorporate management, marketing, product development, businessdevelopment, and sales.Proprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.1

Agenda for Today’s Webinar Background SMBs We Interviewed Online Resumes of SMB Interviewees Findings Value & UsageTime SavingsAwareness & Control of Online PresenceBigger Online FootprintPricing, Sales & DistributionPlatform EvolutionProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.2

Background About a dozen SMBs in 10 different businesses were interviewed Interviews conducted weeks of Oct. 5 and Oct. 12, 2009 Interviews were by telephone, 15-40 minutes About a dozen questions Anonymity assured Customers of two early-stage platforms for managing SMB onlinepresence: Marchex ‘Reputation Management’ (currently in beta) SMBLive ‘CloudProfile’ (recently commercial*)*SMBLive has provided similar core technology for British Telecom’s www.BTTradespace.com,since April 2007.Proprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.3

Marchex Reputation ManagementProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.4

SMBLive’s CloudProfileProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.5

SMBs We Interviewed Home-renovation contractor Skilled craftsman (stonemason) Salons (one day spa; salon with 7 locations in same metro) Packing & shipping store franchise owner (3 locations in same metro) Restaurants (one bistro; chain with 8 locations in same metro) Several specialty retailers (e.g. high-end audio; wine merchant) Lodging establishments (boutique hotel & hostel) Skin care clinic (7 locations in same metro)Proprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.6

Online Resumes of SMB Interviewees Marchex customers (‘Reputation Management’): Already had websites Had been using Reputation Management a couple of months Tended to be fairly web-savvy (some web advertising; highly aware ofreview sites like Citysearch and Yelp) Almost always had researched competitors’ online presence/reviews SMBLive customers (‘CloudProfile’): Most did not have a website previously Had been using CloudProfile a few months (longest was six months) Tended to be less web-savvy (little or no web advertising; not focused onreview sites) Tended to have more limited objectives (with notable exception) Tended to pay less attention to competitors’ online presence/reviewsProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.7

Findings: Value & Usage SMB users were unanimous in seeing high value to these platforms: Create big time savingsSupport a larger online footprintProvide efficient competitive intelligenceIncrease awareness and control of online presence and dialog Accordingly: Usage is frequent (although big differences by category) Creative uses emerging There are some challenges, not atypical for early-stage products: Some product enhancements are desired Price point not clear (if priced explicitly)Continued Proprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.8

Findings: Value & Usage Usage frequency varies: Lowest is once a month (specialty retailer) Highest is daily (restaurants) Often a strong interest in competitive intelligence: Several SMB users said the first thing they did was check on theircompetitors (“love the spy stuff”) As with usage frequency, interest in competitors varied by category Platforms are viewed as “hubs” for managing online communications: In some cases, platforms distribute content to social networks, withoutthe need to log into the network (e.g. CloudProfile can publish to Twitterand Facebook)Proprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.9

Findings: Time Savings SMB users consistently mentioned time savings as the #1 benefit Savings are seen in: Checking listings information (a particular issue for businesses withmultiple locations) Monitoring reviews (again, particularly helpful for businesses withmultiple locations) Marketing (“Helps beat the bushes to reach new customers”) Boosting PR (even damage control, in some tomymybusiness.”business.”Proprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.10

Findings: Awareness & Control of OnlinePresence Strong interest in the content of reviews (e.g. if there is a particularproblem, they want to fix it). Several SMB users emphasized the importance of “keyword” reporting. “I had no idea how many review sites were out there” Bogus reviews, by competitors or disgruntled employees, are a factof life Awareness and control over listings/identities (“dirty, filthy n”information”David Glazer, Director of Engineering, Google (speaking about the new Google Wave product), quotedOct. 12, 2009 in the San Francisco Chronicle.Proprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.11

Findings: Bigger Online Footprint In general, SMB users believe they’re more discoverable by searchengines because of these platforms In general, SMB users have gotten smarter about online marketing: More discriminating about keyword purchases Track click sources Smarter about the SEO game: Fresh, unduplicated content from SMB Links (to sites, blogs, social networks, YouTube) Online UGC (often via social networks)Proprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.12

Findings: Bigger Online FootprintOne SMB’s content ecosystem, driven from CloudProfileAutomatic contenttransfer viaCloudProfile widgetsLocal online mediathat scrape Twitterand FacebookProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.13

Findings: Pricing, Sales & Distribution Most popular price: Free “This would be a great add on” If priced explicitly, most SMB users said they’d be willing to pay upto 25 per month Where there was a channel preference expressed, it was generallyin favor of online players (such as a search engines, SEMproviders, or local content providers like Groupon), as opposed totraditional mediaProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.14

Findings: Platform Evolution More robust push notification Connection to email marketing (and eventually, to CRM) Even simpler user interfaces Ability to contest suspect ratings or reviews with publisher (e.g.Yelp, otarymeetings.”meetings.”Proprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.15

What it all Means A major new business platform for SMBs is emerging that combinesadvertising/marketing/communications: Delivered via the web (ASP model) Leverages ‘Web 2.0’ features Will engender many new ‘micro-content’ ecosystems Will be offered by multiple providers, bundled and stand-alone Will probably evolve quickly Will probably create numerous new partnerships betweentechnology providers, various online service providers, anddistribution channelsProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.16

Interactive Local Media ConferenceDec. 9-11, 2009 at the Hyatt Regency Century Plaza, Los Angeles, CaliforniaWebinar attendees receive 200 off ILM:09 registration.Register online at www.kelseygroup.com/ilm2009 and use one of the following promo codes:Public: ILM09WEBINARBIA/Kelsey Clients: ILM09WEBINAR-CBuild Your Digital StrategyBIA/Kelsey helps clients evaluate their strategic options and navigate the complicated issuesaffecting the media and communication industries today. We provide a range of research,consulting and analysis services designed to complement a company's mission statement and longterm or interim strategic goals.http://www.bia.com/services planning.aspInteractive Local Media Advisory Service(ILM) is the authoritative source for research and analysis on business models, technology,advertising models and trends in the interactive local search and media space, offering a globalview of local search, mobile search, social media, Internet video, directory assistance and free -local-media.aspProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.17

Thank you for attending today’s event.Following today’s event you will receive an email with a link to a landingpage so you may download the slides, view the video and listen to aMP3, as well as access other resources.We will now take questions.All unanswered questions will receive a response in the coming days.Important Links:ILM Conference:www.kelseygroup.com/ilm2009ILM Advisory ctive-local-media.aspSteve Marshall - smarshall@kelseygroup.comMatt Booth - mbooth@kelseygroup.comProprietary and Confidential.Copyright 2009 BIA/Kelsey. All Rights Reserved.18

providers, or local content providers like Groupon), as opposed to traditional media. . Interactive Local Media Conference Dec. 9-11, 2009 at the Hyatt Regency Century Plaza, Los Angeles, California . BIA/Kelsey helps clients evaluate th