5 Hyperlocal Marketing Trends You Can’t Ignore

What do mar­keters need to know about the hyper­local oppor­tu­ni­ty? Here are five hyper­local mar­ket­ing trends busi­ness­es can’t ignore.

Mike Fantis By Mike Fantis from DAC Group. Join the discussion » 1 comment

The dig­i­tal and phys­i­cal shop­ping worlds are two pieces of the same puz­zle. It’s easy to think of them clash­ing and col­lid­ing, with each look­ing to steal a piece of the pie from one anoth­er; but in real­i­ty, most cus­tomer buy­ing jour­neys are like­ly to criss­cross between the dig­i­tal and phys­i­cal worlds.

Con­sumer buy­ing jour­neys may be ini­ti­at­ed with a nation­al touch­point such as the web­site, TV adver­tis­ing or cus­tomer ser­vice, but many still end up on the hyper­local envi­ron­ment in phys­i­cal stores. Thir­ty-eight per­cent of con­sumers research online before pur­chas­ing offline (ROPO), and  research by eBay and Deloitte found that near­ly 40 per­cent of con­sumers make pur­chas­es inside a phys­i­cal store at least once a week, com­pared to just 27 per­cent who do the same online, accord­ing to PwC’s annu­al con­sumer sur­vey. This means that brands still have to win “the last phys­i­cal mile” with cus­tomers, and increas­ing­ly brands have to win it dig­i­tal­ly. At the most basic lev­el, Google reports that the “get direc­tions” but­ton is the sin­gle most used fea­ture on a smart­phone. Seri­ous­ly, take a moment and con­sid­er how many mil­lions of cus­tomer jour­neys that now include that sim­ple but fun­da­men­tal step! The dig­i­tal hyper­local space is an open goal for brands that take the oppor­tu­ni­ty to put them­selves in the right place at the right time, and cre­ate real val­ue for the con­sumer. After all, why spend time and mon­ey build­ing a nation­al brand, to not cap­i­tal­ize on that invest­ment all the way through to the local brick-and-mor­tar store? So what do mar­keters need to know about the hyper­local oppor­tu­ni­ty? Here are five hyper­local mar­ket­ing trends busi­ness­es can’t ignore.

1. Consumers Expect & Demand That Brands Deliver Digital Hyperlocal Experiences

When was the last time you searched online for a pre­ferred brand or gener­ic ser­vice local­ly and found fan­tas­ti­cal­ly opti­mized and rel­e­vant local results? I sus­pect, rarely! Which is a cry­ing shame giv­en that local­i­ty and mobil­i­ty go hand in hand. Fur­ther­more, in the ‘push’ era our phone OS and nav­i­ga­tion apps are telling us what they think we need, when, and who can sup­ply it. Accord­ing to recent research by Ipsos Mori, 52 per­cent of cus­tomers look specif­i­cal­ly for local busi­ness hours on search engines.  Con­sid­er that against data from the InfoGroup, where 44 per­cent of peo­ple report hav­ing an out­ing “ruined” by incor­rect infor­ma­tion relat­ing to trad­ing hours. This is not triv­ial stuff, and just one exam­ple of the incom­plete hyper­local expe­ri­ence most busi­ness­es are deliv­er­ing. In his Think With Google arti­cle, Matt Law­son, the company’s direc­tor of search ads mar­ket­ing, wrote:

We want things right, and we want things right away. As a result, the con­sumer jour­ney looks marked­ly dif­fer­ent than it did just five years ago. Instead of a few moments of truth, it’s a series of ‘micro-moments’ when we turn to mobile to act on a need.”

We’ve grown to expect our smart­phones to serve rel­e­vant, local results. ‘Near me’, ‘clos­est’, and ‘near­by’. All phras­es that would have meant lit­tle just a decade ago are begin­ning to dom­i­nate the bil­lions of queries every month. In fact, ‘near me’ search­es have near­ly dou­bled in the last year. Whole Foods, one of the largest U.S. pub­lic food and drug retail­ers, attrib­ut­es much of its busi­ness suc­cess to hyper­local mar­ket­ing. The gro­cer rec­og­nized that its cus­tomers’ needs are dif­fer­ent and vary from region to region, result­ing in region-spe­cif­ic social accounts and con­tent mar­ket­ing strate­gies. It builds tremen­dous brand loy­al­ty and trust by inte­grat­ing its stores into the var­i­ous com­mu­ni­ties it serves. Peo­ple are increas­ing­ly mak­ing crit­i­cal pur­chase fun­nel deci­sions on the move and the amount of rev­enue a busi­ness with­out a local pres­ence is leav­ing on the table remains an unknown quan­ti­ty.

2. The Technology Giants Are Delivering Against This Expectation, Ahead Of Everyone Else

Over the past few months we’ve seen many of the tech giants of this world, name­ly Google, Face­book, Apple, Pin­ter­est and Ama­zon make local a major focus. When these guys bet big, they are usu­al­ly right. Per­haps the most inter­est­ing devel­op­ment from the giants is Facebook’s M, its new vir­tu­al assis­tant. A com­bi­na­tion of AI and human inter­ven­tion, M seems to be a large scale per­son­al assis­tant avail­able serendip­i­tous­ly via Face­book mes­sen­ger and dri­ven by a huge local data­base of reviews, cita­tions and NAP infor­ma­tion. How pow­er­ful is that? And how sig­nif­i­cant for brands who rely on local pres­ence for the final yards of the con­sumer jour­ney? Facebook’s goal, it says, is to make Mes­sen­ger the first stop for mobile dis­cov­ery, for any­one look­ing to do or buy any­thing. It’s some­thing local busi­ness­es can’t ignore. Addi­tion­al­ly, Pin­ter­est recent­ly announced that users will be able to make phone calls and get direc­tions to bricks-and-mor­tar loca­tions from with­in their iOS app (with web and Android com­ing soon). They will also be able to see store open­ing hours and read tips and reviews left by cus­tomers. Pin­ter­est is auto­mat­i­cal­ly pulling in the loca­tion data via the pub­lic Foursquare API, for its near­ly sev­en bil­lion Place Pins. And don’t for­get Ama­zon, which has just part­nered with Yelp to give Alexa, its voice assis­tant, some street smarts. Alexa, who lives inside Ama­zon’s Echo Blue­tooth speak­er, now plugs into Yelp to pull out local search results. These devel­op­ments show how keen the big tech com­pa­nies are to deliv­er an amaz­ing local expe­ri­ence for their users. For con­sumers, find­ing a prod­uct or ser­vice in their local area used to require a clunky com­bi­na­tion of the Yel­low Pages, a map, and a tele­phone. Look how far we’ve come.

3. Reputation Management Is Going Hyperlocal

There is much research to show that the num­ber of con­sumers read­ing online reviews to deter­mine the qual­i­ty of a local busi­ness is high­er than ever. The vol­ume of reviews cus­tomers are read­ing is also on the increase, with many review­ing a min­i­mum of five before they put their trust in a local busi­ness. The amount of faith a cus­tomer has in online reviews is now almost equal to a rec­om­men­da­tion from a trust­ed friend. This means that neg­a­tive local reviews can dam­age a brand per­cep­tion at a nation­al lev­el, if they are not addressed prop­er­ly. How­ev­er, a recent poll by AYTM Mar­ket Research found that few con­sumers actu­al­ly post local busi­ness reviews. Near­ly three-quar­ters of US inter­net users said they had nev­er post­ed a review of a busi­ness on Yelp or a sim­i­lar site, while 16 per­cent had only done so once or twice, and just 10.5 per­cent many times. This rep­re­sents a missed oppor­tu­ni­ty, par­tic­u­lar­ly as the review rat­ing is one of many rank­ing fac­tors Google uses with­in its algo­rithm. The bet­ter the rat­ing the more chance of rank­ing high­er in the web search or map results. In com­ing months, we are like­ly to see local busi­ness­es doing more to encour­age cus­tomers to write and pub­lish reviews, and par­tic­u­lar­ly when they’ve received a pos­i­tive expe­ri­ence. With­out reviews, you are at risk of hav­ing no rep­u­ta­tion sig­nals, or worse, that you have one sin­gle, scathing review, vis­i­ble in your local search list­ing. In the near future, man­ag­ing your local rep­u­ta­tion and being aware of the hyper­local con­sumer jour­ney won’t sim­ply be the respon­si­bil­i­ty of your local area man­agers or acqui­si­tions team, it will be core to your DNA and bot­tom line.

4. The Local Search Ecosystem Is Gaining In Prominence

Google now lists local search results above organ­ic results, which is an enor­mous trans­for­ma­tion for busi­ness­es. It’s a game chang­er, par­tic­u­lar­ly for the mobile con­sumer who rarely scrolls below the fold. Google has also made its local results fea­ture a three-pack of busi­ness­es instead of sev­en, which cre­ates a pret­ty tough envi­ron­ment in which to cut through. This is in addi­tion to it rolling out an updat­ed, clean­er look for its Google Maps search results, incor­po­rat­ing a new list­ings card for local busi­ness­es. Con­se­quent­ly it is more impor­tant than ever for busi­ness­es to opti­mize their local land­ing pages with infor­ma­tion that is rel­e­vant to the loca­tion, so that they can be found on their own as well as through the main brand site. Unique­ly local land­ing pages should be devel­oped for indi­vid­ual loca­tions, and be SEO opti­mized to take into account shop­ping behav­ior for a spe­cif­ic store, or store-spe­cif­ic offers or dis­counts maybe.

5. Media Spend Is Going Hyperlocal

Local adver­tis­ing spend is pre­dict­ed to reach $157.7 bil­lion by 2019, a 14 per­cent cumu­la­tive increase of $139.4 bil­lion in 2015, accord­ing to BIA/Kelsey’s U.S. Local Media Fore­cast 2015. Busi­ness mar­keters are increas­ing­ly real­iz­ing that their local stores or deal­er­ships now own the brand rela­tion­ship with the cus­tomer, and this is what needs to be nur­tured with­in their media spend. Addi­tion­al­ly, social media plat­forms are offer­ing an increas­ing array of loca­tion-spe­cif­ic mar­ket­ing oppor­tu­ni­ties for busi­ness­es. This is indi­ca­tion that they too believe hyper­local is an area ripe for mon­e­ti­za­tion. Con­sumers are nat­u­ral­ly more open to deal­ing with orga­ni­za­tions that present them with infor­ma­tion in a way that works for them per­son­al­ly, and par­tic­u­lar­ly at a local lev­el. Sure­ly there has nev­er been a stronger case for busi­ness­es to tru­ly con­sid­er their hyper­local strat­e­gy, and keep abreast of this rapid­ly devel­op­ing mar­ket.

Mike Fantis

Written by Mike Fantis

VP Managing Partner, DAC Group

Mike has spent over ten years specialising in Digital Advertising Strategy; as a client, a specialist media marketing consultant and within leading large media agencies, including Manning Gottlieb OMD and Latitude. Mike is a well respected authority on ROI driven media strategies from macro to micro levels for transforming consumer engagement. Mike also regularly contributes to some of the industries leading forums and is a renowned advisor and trainer to Econsultancy members on strategy and ROI driven performance. As Managing Partner for DAC Group's UK agency - Make It Rain, Mike develops measured media strategies for brands including easyCar, easyHotel, and CenterParcs whilst ensuring high performance across the company's client portfolio. Mike's wider search marketing experience spans blue-chip brands in major search verticals including Virgin Media, Skype, and Merlin Group.

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