Thursday, April 17, 2014
Press Releases

Personalization and Verticalization Take Center

Peter Krasilovsky, a senior analyst with BIA/Kelsey, made a presentation to the Innovation Mission group that focused on the importance of personalization and verticalization in the coming years.

SMBs are facing a glut of media and commerce types, they have more channels to choose from. The average number of media used by SMBs is 8, which has increased 77% by 2010. Getting the credit for the consumer’s choice of your media is difficult to track. Their is a new local marketing ecosystem (It isn’t just advertising anymore). It is -- Media/Transactions/Engagement. Krasilovsky said, "the Linear Marketing Funnel is dead. It has been turned upside down. Different things are now influencing the transaction beyond the traditional ones.

Krasilovsky said that online deal volume is increasing. Loyalty discount, shopping promo etc. and that the mobile wild card is geotargeting, and its personalization will change local advertising. Location targeting will be 57% of mobile ad spend by 2017.

Another issue -- SMBs seek ROI investment – SMBs point to mobile as working for them, even though they are not spending on mobile to match. Social media is a mobile driver. Social media is a big chunk of mobile. Expect social to increase with mobile through 2017. Local social to grow through 2017 to $3.6B from $1.6B today.  National spend will be $7.3B in 2017, $4.5B today.

Krasilovsky focused on the importance of "verticalization": The move away from horizontal media. There needs to be more focus on individual segments such as dive deep into healthcare with more niches an example would be autism, blood pressure, etc.  Newspapers are deeply verticalized. Cars.com, Zillow, Monster etc.  Zero in to a vertical with four different type of products. Vertical Search, Vertical Apps, Niche Products, Vertical Portals.



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