Reputation and Presence Management: Joining the Conversation

1. Reputation and Presence Management:Joining the Conversation A BIA/Kelsey Webinar Wednesday, October 14th

2. Interactive Local Media Conference • Dec. 9-11, 2009 at the Hyatt Regency Century Plaza, Los Angeles, California • ILM is where the local online media community gathers to learn what's working, make connections and conduct business. • According to the latest wave of BIA/Kelsey’s Local Commerce Monitor Study, 77 percent of small and medium-sized businesses now include digital/online advertising in their marketing mix. At ILM:09, we will focus on how local media companies are helping SMB advertisers manage their online reputations and maximize their online investment. • Attendees are a global audience of executives responsible for corporate management, marketing, product development, business development, and sales.

3. Today, we are going to look at a new kind of local product – “A White Space” What you’ll see today are foundation products. What we’ll explore is how these beginning building blocks will evolve into a much larger and integrated suite of products that will solve for many of today’s small business market challenges outside of the SMB’s control. Today, we’ll explore what this market is, its genesis and evolution and, finally, where it will go and why. Panelists:Matt Booth, Senior VP and Program Director, Interactive Local Media, BIA/KelseyAlex Hawkinson, Founder, SMBLiveMatthew Berk, Executive VP, Product Engineering, Marchex Today’s Webinar - The Communications Revolution: E-Mail, Reputation and Presence Management

4. We will review the feedback obtained from BIA/Kelsey Interviews with SMBs currently using alpha and beta releases of Marchex’s and SMBLive’s platforms. Our results were neither vetted nor pre-approved. Panelists:Matt Booth, Senior VP and Program Director, Interactive Local Media, BIA/KelseySteve Marshall, Director of Research and Consulting, BIA/KelseyOct. 15, 20092 p.m. - 3 p.m. EDT Tomorrow’s Webinar - The Business View of E-Mail, Reputation and Presence Management

5. The BIA/Kelsey Thesis…Why You Should Care “Within three to four years, the local market will coalesce around a platform that facilitates communication between businesses and consumers. It will first be built on aggregating consumer feedback and managing reputation. Later, this platform will allow businesses to interact and respond to consumers. The company that controls this platform will create lock-in across the local market.”

6. Web. 3.0 – The Communication Platform – The Product Evolution • V1 – The Base Product • Built on Aggregated Consumer Reviews • Allows SMBs to Monitor ‘Noise’, ‘Opinion’ while ‘Monitoring Feedback’ • “What are people saying about my business” • V2 – Push-Pull Messaging (Two Way Messaging Begins) • Listing Submission, Correction and Enhancement • Placement Engine (Real-Time) – Facebook, Twitter • Email and Push Offers • “I’m slow or need to clear inventory” • V3 – Lock-in “Winner Take All” • Merchants Responding to Consumer Requests, Gaining Influence and Following • Consumers Gravitate towards the Product Instance where the most Merchants are Interactive and Responding • “I had a bad experience [at, with] my favorite [store, brand]. Wrote a review, the owner read my review and fixed the problem.”

7. MARCO Drivers • Deleverage Means Behaviors Are Changing • Shift to Interactive Ad Spend will Accelerate • Search will Continue to Grow in Share • A Partial Effect of Search’s Power and Dominance Means that “Digital Relationship Building” (like Email) is Critical to Success…

8. The Credit Crisis Is the Inflection Point: Deleveraging Is Gathering Steam • What we have seen so far ― mortgage defaults, falling house prices, bank failures, and lower economic activity ― is only the initial stage of a longer deleveraging cycle • After decades of growth, household debt in the US has only recently started to contract Net Borrowings by US Households Source: Greed & Fear, 18 December 2008. - http://www.federalreserve.gov/releases/z1/Current/z1.pdf

9. U.S. Local Media and Ad Spend: 5-Year Forecast Overall CAGR: -1.4% (2008-2013) US$ Billions Source: BIA/Kelsey (2009)

10. US: 2008 & 2013 Interactive Ad Market, Growing from $29.18B to $58.57B Source: Proprietary research by BIA/Kelsey, mid-2007. Sample: 1,200 SMB advertisers in 4 major US MSAs). Methodology: Telephone survey. Cosponsor: ConStat.

11. The Communication Platform’s Product Evolution – The 7 Reasons Why • People rely on opinions of friends, family and peers to make decisions

12. Both Off-line and On-line, People’s Communication and Interaction Defines the Services Used and The Products Purchased Local searchers are more likely than other groups to utilize local newspapers and magazines for their research.IYP users go to a printed directory more than any other printed offline resource for their secondary research. Additional Offline Research Additional Online Research Survey question: What additional offline resources did you use for research?Survey question: What additional online resources did you use for research?*Option added in 2008

13. The Communication Platform’s Product Evolution – The 7 Reasons Why • People rely on opinions of friends, family and peers to make decisions • Time spent on communication activities dominates time spent on-line; a mirror of off-line habits

14. Mirroring off-line behavior, Internet Users Spend ~1/3 of time Online Time Communicating • People spent 21 hours per person and 27 hours per person in Singapore and France, in February 2009, respectively • Communication platforms dominate on-line (IM, Social Networks and Email) Source: comScore (2009)

15. The Communication Platform’s Product Evolution – The 7 Reasons Why • People rely on opinions of friends, family and peers to make decisions • Time spent on communication activities dominates time spent On-line; a mirror of off-line habits • Search continues to grow and consolidation leads to aggregation; few people go to page two

16. Unique Searchers Searches per Searcher Searcher and Search Intensity Growth in the U.S Unique Searchers vs. Search Intensity Change vs. Jun-08 Searches per Searcher Unique Searchers (MM) +25% +5% Search growth was partially driven by intensity growth, at nearly 109 searches per searcher and up 25% versus June 2008. Search growth was also driven by an increasing searcher base, reaching 202MM searchers in June 2009. Source: comScore qSearch 2.0 Total US Internet Searchers

17. Consider The Various Incentives of a Hotel Search(Example: New York City Hotel Search) There were 506,000,000 “hotel” searches across Google’s Network in September – Top 3 position: clicks costs $3.16 (~$1.6B) The number 1 Organic Position can receive up-wards of 40% of traffic Q: If you owned a hotel website, what would you do?

18. The Communication Platform’s Product Evolution – The 7 Reasons Why • People rely on opinions of friends, family and peers to make decisions • Time spent on communication activities dominates time spent On-line; a mirror of off-line habits • Search continues to grow and consolidation leads to aggregation; few people go to page two • Editorial resources are too expensive to be fully supported by advertising; Therefore aggregation of and consumer reviews dominate local content

19. Just Like the Earlier Hotel Example, It Pays to Be First. But, Editors Are Expensive and Consumer Reviews are Cheap and Plentiful. A consumer searches a proper business name. The example here is “Mountain View Sushi, Sierra Madre, CA” and the entire search return (except the map) are companies aggregate content about that business. Like 1990 era Travel Agents most businesses are getting “out-represented”

20. The Communication Platform’s Product Evolution – The 7 Reasons Why • People rely on opinions of friends, family and peers to make decisions • Time spent on communication activities dominates time spent On-line; a mirror of off-line habits • Search continues to grow and consolidation leads to aggregation since page one is very valuable; few people go to page two • Editorial resources are too expensive to be fully supported by advertising; Therefore aggregation of and consumer reviews dominate local content • Businesses feel hijacked – “Who are all these people writing about my business?”

21. Fair or Not, Businesses Feel Misrepresented. (Comments to a NYT Article) “For a small business, giving money to Jeremy Stoppelman and Yelp is like handing a butcher knife to a serial killer.” — dveron “Yelp is a haven for trolls, and now hardworking business owners can take time out of their busy day to argue with them. Screw Yelp. We’ll be celebrating when they finally go down the toilet. “ — Luisa “It took yelp six years to even consider giving small business owners a voice on their website, and only after a flurry of negative media attention threatened the viability of its own business. “ — blogorama Source: http://bits.blogs.nytimes.com/2009/04/09/yelp-gives-small-businesses-a-louder-voice/

22. The Communication Platform’s Product Evolution – The 7 Reasons Why • People rely on opinions of friends, family and peers to make decisions • Time spent on communication activities dominates time spent On-line; a mirror of off-line habits • Search continues to grow and consolidation leads to aggregation; few people go to page two • Editorial resources are too expensive to be fully supported by advertising; Therefore aggregation of and consumer reviews dominate local content • Businesses feel hijacked – “Who are all these people writing about my business?” • Small Business Owners Measuring Instant Gratification (not ROI)

23. BIA/Kelsey LCM Survey – SMB’s Opinion of the Best to Worst ROI; Measuring an Important “Perception” of Value: Instant Gratification Internet Media to Benefit from Perception 53% 39% LCM, Ratings are by users of that media type.

24. Financial Services Media Spend: Digital Media An analysis of spending by online and new media underscores the strong position of e-mail marketing. Although spending on pay-per-click is still very low (2.3%), it is more than double the spend by Professional Services SMBs on this medium (1.2%). Financial Services Spending on Digital Media % of Budget Spent on Media Type $ Spent (Avg. Annual) Source: BIA/Kelsey Local Commerce Monitor Wave XII August 2008 (Financial Services sample: 310. Core LCM XII sample: 299). Methodology: Online. Cosponsor: ConStat.

25. The Communication Platform’s Product Evolution – The 7 Reasons Why • People rely on opinions of friends, family and peers to make decisions • Time spent on communication activities dominates time spent On-line; a mirror of off-line habits • Search continues to grow and consolidation leads to aggregation; few people go to page two • Editorial resources are too expensive to be fully supported by advertising; Therefore aggregation of and consumer reviews dominate local content • Businesses feel hijacked – “Who are all these people writing about my business?” • Small Business Owners Measuring Instant Gratification (not ROI) • After email, ‘Immediacy’ and ‘Instantaneous’ response is pushing businesses to use communication platforms

26. Social Networks Are About Immediacy; Think Facebook’s News Feed SMBs that Intend to Use a Page On a Social Site in Next 12 Months Overall average @ 32% Note: Scale begins at 10%. Source: BIA/Kelsey Local Commerce Monitor. Wave XIII August 2009 (Sample: 302). Methodology: Online. Co-sponsor: ConStat.

27. Twitter’s Core Strength is Also Immediacy Use of Print Yellow Pages vs. Twitter (by Age of Business) Twitter: Overall 9% Source: BIA/Kelsey Local Commerce Monitor. Wave XI July 2007 (Sample 304). Wave XII August 2008. (Sample 299). Wave XIII August 2009 (Sample: 302). Methodology: Online. Co-sponsor: ConStat.

28. Recap: Web. 3.0 – The Communication Platform – The Product Evolution • V1 – The Base Product • Built on Aggregated Consumer Reviews • Allows SMBs to Monitor ‘Noise’, ‘Opinion’ while ‘Monitoring Feedback’ • “What are people saying about my business” • V2 – Push-Pull Messaging (Two Way Messaging Begins) • Listing Submission, Correction and Enhancement • Placement Engine (Real-Time) – Facebook, Twitter • Email and Push Offers • “I’m slow or need to clear inventory” • V3 – Lock-in “Winner Take All” • Merchants Responding to Consumer Requests, Gaining Influence and Following • Consumers Gravitate towards the Product Instance where the most Merchants are Interactive and Responding • “I had a bad experience [at, with] my favorite [store, brand]. Wrote a review, the owner read my review and fixed the problem.”

30. ABOUT MARCHEX Marchex is a performance advertising company that leverages technology to help advertisers grow their business with local customers

31. The Problem Reputation Management Solves • Local Search is a solved problem for consumers…but not small businesses (SMBs) • SMBs are time poor, lack marketing expertise • SMB digital footprints are fragmented, disparate and growing without their knowledge • Consumer reviews can dramatically affect their business • Reputation Management: • Gives SMBs visibility into their online presence to inform marketing, operations • Saves SMBs time (money) by staying on top of their profiles and footprint • Identifies areas to take action

32. How We Got Into Reputation Management • Marchex has been investing in aggregating and data mining local content since 2003 through it’s local search engine Open List • Local search is about helping consumers make (better) decisions about where to spend locally • The data is filthy and a huge problem • We realized that local search for consumers is a solved problem. • SMBs we spoke to were at an information disadvantage online. • Customer dialogue is the marketing…. • Leverage the same data set, but on behalf of SMBs

33. Product Overview • An easy to use service built on robust local search data, content sources and useful features. • Data Set • 20+ data/listing relationships • 8,000+ content sources • A quarter billion pieces of local meta data…refreshed and growing every night • Customer Profile • For the most sophisticated online SMB to the “starter” • Product Features • Review summarization and filtering • Key phrase extraction • Mentions from across the Web • Listing footprint: inaccuracies and opportunities • Comparisons with competitors • Email alerts • Social media sharing of content • Trending and comparison charting

34. Overview: Reputation At-A-Glance

35. Reviews: Summarization and Filtering

36. Mentions: From Across The Web

37. Listings: Inaccuracies and Opportunities

38. Comparisons with Competitors

39. How This Differs: Local Listings vs. Keyword Alerts • Keyword alerts are a great place to start but... • An online profile allows a local business owner more control: • - tie information back to a physical listing • - meaningful comparisons of local meta data • - side by side comparisons of businesses by specific geography

40. An “Information Advantage” for SMB’s • Clear benefits identified by our Alpha testers included: • Actionable data to improve their business • Non-reviewed businesses active in seeking ratings • Inaccurate listings identified and corrected • Competitive reviews undertaken • Store by store comparisons helping drive consistency

41. SMB’s and Partners: Join the beta test program http://www.marchex.com/repmanagement

42. Amplify Your Online Voice CloudProfile Overview | October 14, 2009

43. Company Background • Founded in 2005, SMBLive is a software company that helps small businesses to get discovered online, engage their customers, and grow revenues • 2006-2008 developed and refined first generation product in joint development with British Telecom (BT) under the brand www.BTTradespace.com • Tradespace has reached >375K small business customers in the UK since it launched in April 2007 • Based on the learning from this effort, SMBLive has created its next-generation platform, called CloudProfile • CloudProfile is available today, and is built for distribution through partners

44. The Market • Historically, businesses looked to their phone company to ‘make the phone ring’ via a Yellow Pages Advertisement • Increasingly, the ‘ringing phone’ today is a web-based or social media interaction – Web Chat, Contact Form, Twitter Message, Facebook Fan Post • Just as Google disrupted the success of the Yellow Pages business, there is a coming wave of disruption around social media and the conversational, real-time web • For organizations that are looking to expand their relationship with SMBs, that opportunity is to help small businesses get online, get found, and engage customers

45. Consumers Trust Each Other More Than They Trust Advertising • 78% of consumers trust peer recommendations • Only 14% trust advertisements • Social networks and user reviews are only a click away • Natural and social discovery rule, and customer service is the new marketing

46. Conclusions • SMBs need to be discovered to survive, they pay a lot to be discovered, and they HAVE to learn to bediscovered online • SMBs need the right solution that makes it easy to be interactive and socially discoverable online. • By providing small businesses with simple tools to solve this problem and embrace the web, we can have a very big impact. • http://www.slideshare.net/CloudProfile/get-to-know-cloud-profile-by-getting-to-know-josh-brooks

47. What is CloudProfile?A conversational, social media optimized Web site for small businesses, that includes… 3 Customer engagement toolsincluding click-to-chat, click-to-call, contact forms, following and more – so that customers drawn to your CloudProfile will be able to easily engage with you 2 Private, business owner viewwith content authoring, marketing, social media, analytics and management tools Public, customer viewthat serves as a premier, search-optimized destination site for information and updates about your business 1

48. CloudProfile helps SMBs… Get Online Talk & Be Found Listen & Respond Make Better Use of Time

49. Get Online

50. Talk & Be Found Locally Naturally Socially