Local businesses want leads and customers, not clicks. Although pay-per-click and pay-per-call are the two prevalent ad models to reach local searchers, will other models like CPA/PPA ultimately be more effective?
(Partial Liveblogging - other presenters not blogged… couldn’t get a coherant flow going :-P)
Steven Chuck, Director of Strategic Alliances, Yahoo!
Hyper Local - Mom/Pop
Do we see a day when cost per lead pay per action model takes hold in SMB advertising?
It depends on
- advertiser segment,
- full impact of web2.0 (ratings, etc.)
- sales channel.
Why are we asking?
SMB ability to value clicks - changing with time?
Yahoo - reasons to build a website?
- build awareness 72%
- Present credible images 66%
- providing up to date info 56%
….then, way down the list… - generate online sales 21% (wow!)
- generating leads 24%
Difficulty translating click to close for SMBs
For SMB sectors advertising will always matter! Persistent branding needs are a big part of their priority. I may not be able to measure the precise ROAS, but my customers know that my ad will always be on page x of the newspaper when they need me.
Many retail / service sector need a presence in market that extend throughout the funnel. At all points of sales consideration.
Digital WOM - ratings and reviews. WOM is public!
- The “AAA” SMB today and beyond. Everyone needs positive ratings. SMBs need help managing this!
Scott comment: Many SMBs have no clue. Not sold in CPL method. - 72% might use dealership web site, 58% will post comments (!)
- New Yahoo! Local site is geared towards more ratings!
Closest and best govern Yahoo Local now, not “AAA Plumbing”
Why the sales channel matters
- Fit of online offering with current offering. Cant response response products with with reach products by adding a line item to the IO.
- No overnite transitions. Sales Force can expect channels to take a while. Take a lot of effort.
- Channel appetite for transparency. CPL/PPA requires a response orientation and tracking - sometimes it’s hard to get people to embrace this model of transparency.
Partial liveblog.
Wal-Mart buys no display advertising - they find no value. Interesting.
How do advertisers value clicks, calls, etc….
Lots of assumptions that people are rational… but it’s not true! “This is the way I do it.” We are not tracking marketers by nature!
On google 1/3 of bid have no strategy, 1/3 have flawed strategy, 1/3 have a decent strategy.
Ease of use will be a big factor. Even if the solution isn’t the “best”
Perhaps the tracking piece will be what differentiates the winner in the end?
Scott comment: Needs to be an extension to a CRM ..
Who is going to take on the role of educating small businesses?
(See show me the money panel)
Scott comment: yahoo ambassador / help on this?
A big chasm between lead sale and cost per action sale. Depends on sales teams doing a good job.
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