"So we’ve already made good progress in mobile. But it’s 2014 and beyond that really excites us now. You may have heard the term showrooming. The shopping process these days often starts with a consumer researching a product online, maybe a flat screen TV, they’ll go to overview site and begin to narrow down the choices then they’ll head over to the local electronics retailer to see the product themselves.
When they’ve made a buying decision, the last thing they do is whip out their smartphone to see if they are getting the best price. This action is called showrooming. It’s at this point of purchase that a consumer is most valuable. And this is the point where we are focused for the future in providing mobile consumers with the real-time inventory and pricing information for products that are physically around them."
Read the complete transcript of the last conference call of Local Corp direct on Seeking Alpha.
Showrooming has been a real challenge for brick and mortar retailers, because even though the consumers are in their store, they often complete the transaction at online retailers. Unlike other shopping search engines, Krillion was built with the multi-channel retailer in mind.
One ad network on the ad:tech New York expo floor is making an impression with advertisers thanks to its focus on local. With Groupon and retailer coupons on the decline, advertisers are looking for a way to reach regional audiences that doesn't rely on location-based targeting alone. Advertisers also need to incorporate images, text, video and sound across all platforms.
Local Corporation's strategy is holistic. With display ads on local newspapers and local business registers as well as pre-roll ads and mobile banners, Local Corporation can ensure that people in the right areas are seeing the right ads–and people outside of those areas don't. This optimization should improve click-thru rates, which Local Corporation claims are eight times higher through their network than the industry standard. With 3 billion impressions and 2 1/2 page views per visit on average with 50 million monthly page views in total, that's a lot of clicks. Local Corporation isn't the only company riding the waves of the regional ad market. Pandora has most famously and successfully approached regional advertisers with a new digital ad unit that can do some of the heavy lifting of old media–and radio advertisers are listening. Likewise, Google has finally begun to monetize its Maps product in a serious way, although the company's previous attempts at regional marketing have fallen flat to say the least. Still, advertisers are interested in the opportunity that location-based targeted ads on Google Maps can provide. Local advertising is difficult to scale, so it hasn't been a low-hanging fruit in the first stages of mobile media monetization. But advertisers know mobile now and they're finally ready to do local.
Local Corp is Master of Relevance in Mobile Shopping - And that’s the key: it has to be a relevant deal
During all stages of the Mobile Shopping Life Cycle, consumers have the ability to tap into their mobile phones to find products and check pricing and availability based on where they are at the moment.
This is where those ping alert type apps come in, such as when a consumer is driving or walking by a store they receive an alert of relevance.
Key Takeaways from Q3-13 of Local Corp with an idiotic low market-cap of 40.4 million yesterday.
• Revised 2013 guidance:
» Annual revenue for 2013 is expected to be at the low end of previously provided guidance of $95 to $97 million
» Adjusted EBITDA is expected to be approximately $4.5 million
• Sequential revenue growth up 4% to $23.5 million in Q3-13 from $22.7 million in Q2-13
• Adjusted EBITDA up 12% to $1.3 million in Q3-13 from $1.2 million in Q2-13
• Continued expansion of our highest gross margin business – Network revenue up 190% from Q3-12
• Significant progress related to local shopping
» Launched next generation Krillion® local shopping platform
» Announced agreement to provide location-based product data for major search engine» Powering shopping channel for Pittsburgh Post-Gazette.