1. The Marriage of Mobile &
Local: Driving Franchise
Conversions
03/29/13
Michael Boland, Sr. Analyst, BIA/Kelsey
Google Confidential and Proprietary 1

2. Agenda
1 Mobile and Local: By the Numbers
2 Mobile Local User Behavior & Conversions
3 Best Practices and Mobile Strategies
4 Franchise Adoption: The time is Now…
Google Confidential and Proprietary 2

3. Mobile & Local: Where are We Now? mobile searches
have grown
5x in the
past 2 years
• 20% of search is mobile
• 50% of mobile search is local
– compares to 20% on desktop
Apple iPad1
Sources: Query growth - Google internal data 2011; Tablet forecast - Forrester 2010 Google Confidential and Proprietary 3

4. In 2015, mobile local search volume will surpass desktop local search.
120.0 113.4
Desktop Mobile
100.0
85.9 85.6
77.1
80.0 84.0
69.2
Billions
61.6 63.7
60.0 54.9
46.0
40.0 30.7
19.7
20.0
0.0
2011 2012 2013 2014 2015 2016
Source: BIA/Kelsey
Google Confidential and Proprietary 4

5. Local vs. National Ad Spend in Mobile
$18.00 Non-location Targeted Location Targeted $16.79
$16.00
$14.09
$14.00 $9.09
US$ Billions
$11.53 54%
$12.00 $7.20
$10.00 $8.67 $5.72
$8.00
$3.90
$5.39
$6.00
$4.00 $3.25 $2.28 $7.71
38% $6.90
$1.22 $5.80
$2.00 $4.78
$3.11
$2.03
$0.00
2012 2013 2014 2015 2016 2017
Source: BIA/Kelsey
Google Confidential and Proprietary 5

6. Mobile audiences primed for conversions
of smartphone shoppers
of smartphone consumers have of smartphone shoppers have made a
called a business made a purchase on
via their mobile phones after
looking it up on their smartphone purchase in their
store smartphone
after looking up a business on
their smartphone
6
Google/Ipsos OTX, “The Mobile Movement: Understanding Smartphone Users” Google Confidential and Proprietary 6

7. • Most U.S. Retail is Offline, but a Growing Portion is Influenced
Online, in Mobile and Tablet.
Google Confidential and Proprietary 7

8. Mobile Ad Performance
• Localized mobile content and ads see higher engagement
Google Confidential and Proprietary 8

9. Driving Conversions at the Store Level
• Content should contain actionable information to align with mobile user intent
Calls Product Store traffic
awareness
Click-to-call Product Local Ads Location Extensions
9
Google Confidential and Proprietary 9

10. • Advertisers are adjusting to mobile usage realities by including
localized calls to actions in mobile ads and websites
Source: Millennial Media
Google Confidential and Proprietary 10

11. Example: Radio Shack
Google Confidential and Proprietary 11

12. Optimized Mobile Presence is Vital
To boost performance:
51% more likely to purchase from retailers
85% increased engagement
To keep customers:
40% would visit a competitor’s site
instead because of a disappointing
mobile experience
Source: Compuware, “Why the Mobile Web is Disappointing End-Users”. March 2011
Google Confidential and Proprietary 12

13. • Franchises are using mobile marketing but there’s lots of
room for growth.
Tried and Stopped
1%
Figure 1. Franchise
Use of Mobile Haven't
heard of it
Marketing 12%
Heard of it; Don't
know much
16%
Currently Using
55%
Learned about it;
Don't use
16%
Source: BIA/Kelsey
Google Confidential and Proprietary 13

14. • Franchise use of mobile marketing will pick up: Now is
the time
Figure 2. Franchise
intended use of Not sure 21.4%
mobile marketing
Don't use, and not likely to in next 12 months 35.7%
Don't use but likely to in next 12 months 42.9%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Source: BIA/Kelsey Google Confidential and Proprietary 14

15. Any questions?
Thank You!
mboland@biakelsey.com
@mikeboland
Google Confidential and Proprietary 15