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Leads, Conversion
& the Media that
Generate Them
April | 2013

Agenda
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Survey Results
 Respondent Profile
 Lead Generation and Conversion
 Customer Value and Acquisition
 Media Mix and Tactics
 Marketing Investment
 Mobile / Social
Successful Marketing Campaigns
Q & A
AGENDA

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Survey Participant Profile

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Most businesses are consumer focused
RESPONDENT PROFILE
Business to
Business, 3%
Business to
Consumer,
58%
Both B2B and
B2C, 34%
Other, 4%
Don't know,
1%

Independent businesses dominate
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Business
Structure
Seattle
Independent
68%
Franchise
9%
Part of larger
corporation
13%
Other
10%
RESPONDENT PROFILE

6 of 10 businesses have revenue under
$5 million
6
RESPONDENT PROFILE
24%
8%
5%
21%
14%
21%
6%
Annual gross revenue
Prefer not to
answer
$10,000,000 or
more
$5,000,000 to
$9,999,999
$1,000,000 to
$4,999,000
$500,000 to
$999,000
$100,000 to
$499,000
Under $100,000

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Leads & Conversion

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LEAD GENERATION
Where do they
come from?
What’s your
batting average?
How do I optimize
my investment?

More than half of the businesses do not
purchase lead lists
9
LEAD GENERATION
Yes
38%
No
59%
Don't
know
3%
Yes No Don't know

Most businesses have a personal
contact prior to a sale
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CONVERSION
Yes
60%
No
33%
7%
Prior contact with
customers
Yes No Don't know

Businesses made an average of 4.7
contacts to make the sale
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CONVERSION
5%
25%
6%
0%
4%
0%
1%
4%
3%
9%
7%
11%
14%
11%
0% 5% 10% 15% 20% 25% 30%
We don't have "leads"
Don't know
15 or more times
11 - 14 times
10 times
9 times
8 times
7 times
6 times
5 times
4 times
3 times
2 times
1 time
Contacts Prior to Sale Conversion

On average, businesses convert 31%
of leads
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CONVERSION
17%
12%
7%
2%
10%
5%
4%
15%
15%
12%
0% 5% 10% 15% 20% 25%
Don't know
Don't track
leads
70% or more
60-69%
50-59%
40-49%
30-39%
20-29%
10-19%
0-9%
Conversion Percentage

Four in ten customers move from decision to buy
to purchase within one week and 20% same day
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CONVERSION
23%
1%
3%
3%
15%
11%
6%
18%
20%
0% 5% 10% 15% 20% 25%
Don't know/not applicable
1 year or more
7 - 12 months (previous year)
4 - 6 months (previous half-year)
1 - 3 months (previous quarter)
15 - 30 days (previous month)
8 - 14 days (previous two weeks)
1 - 7 days (previous week)
Same day
Sales Cycle Duration

Sales per year
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CUSTOMER VALUE
Less than once per year 19%
1-3 times per year 31%
4 - 6 times per year 7%
7-12 times per year 7%
12 - 24 times per year 4%
25 - 49 times per year 4%
50 - 99 times per year 2%
100 - 179 times per year 2%
180 - 365 times per year 1%
More than 365 times 2%
Don't know/Not applicable 20%

Average ticket value
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CUSTOMER VALUE
7%
6%
3%
9%
10%
11%
7%
7%
8%
7%
7%
6%
4%
1%
1%
1%
1%
1%
1%
1%
0% 2% 4% 6% 8% 10% 12%
Don't know
Perfer not to answer
Less than $10.00
$10 - $24
$25 - $49
$50 - $99
$100 - $149
$150 - $249
$250 - $499
$500 - $999
$1,000 - $2,499
$2500 - $4,999
$5,000 - $9,999
$10,000 - $14,999
$15,000 - $24,999
$25,000 - $49,999
$50,000 - $99,999
$100,000 - $249,999
$250,000 - $499,999
$500,000 or more

Calculate customer value
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CUSTOMER VALUE

Calculate customer value
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CUSTOMER VALUE

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CUSTOMER VALUE

Seattle’s average annual customer
value is $3,160
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CUSTOMER VALUE
18%
8%
1%
4%
3%
6%
11%
9%
10%
8%
12%
11%
0% 5% 10% 15% 20%
Don't know
Prefer not to answer
$25,000 or more
$15,000 - $24,999
$10,000 - $14,999
$5,000 - $9,999
$2,500 - $4,999
$1,000 - $2,499
$500 - $999
$250 - $499
$100 - $249
Under $100
Annual Customer Value

For survival, businesses must
constantly acquire new customers
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ACQUISITION
First
Time
41%
Repeat
59%
Customer Type

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Media Mix

Businesses use a wide variety of media
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MEDIA MIX
87%
80%
71% 70%
64%
58%
24% 22%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Online
marketing
(websites &
email)
Traditional
"major
media"
advertising
Local of f -line
marketing
(events &
f lyers)
Word of
mouth,
passers-by,
window
displays,
referrals,
etc.
Social media Local online
media
advertising
Mobile
media
"Deals of the
day"/Online
coupons
Other
Media Used

Traditional media lead the investment
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MEDIA MIX
29%
15% 21%
12%
10%
6%
3% 2% 2%
$ Spend Share Percent
Traditional "major media"
advertising
Online marketing (websites &
email)
Word of mouth, passers-by, window
displays, referrals, etc.
Local off-line marketing (events &
flyers)
Local online media advertising
Social media
"Deals of the day"/Online coupons
Mobile media
Other

2 out of 3 SMB traditional media
dollars are invested in print
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MEDIA MIX
83%
63%
53%
49%
31%
27%
23% 24%
1%
32%
13%
19%
14%
4% 4%
8%
5%
0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Local
newspapers
Other Local
Print
Publication
Direct Mail Radio Directories
(Yellow
Pages, etc.)
Outdoor and
Out of Home
Broadcast TV Cable TV Cinema
Any spend Share Spend

After pureplays (e.g., Google/Yelp);
local media sites attract SMB’s
25
MEDIA MIX
35%
27%
24%
15% 15%
13%
10%
8%
5%
34%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Online Media Use

Community Building is a focus for SMB’s
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MEDIA MIX
47%
39%
20% 20%
14% 14% 14% 14%
11%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Flyers Sponsor
events
(races,
fundraisers,
etc.)
Ads in
programs for
cultural
events
(Playbills,
schedules,
etc.)
Printed
company
newsletter(s)
Place ads in
church or
organization
bulletins
Local sports
teams (Youth
athletics)
Printed
catalogue
None of the
above
Do not do
local off-line
marketing or
promotion
Other
Use of Marketing Methods

The online marketing tool box
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Online Marketing Seattle
Maintain a business website 92%
Email marketing/promotion 65%
Write a blog focused on your
business or services
42%
Postings on local/national sites
like Yelp
42%
None of the above 5%
Other 2%
MEDIA TACTICS

The online advertising tool box
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MEDIA TACTICS
33%
2%
9%
9%
15%
23%
25%
30%
38%
0% 10% 20% 30% 40%
No online ad programs
planned
Other
Online display ads with
audio
Streaming video ads
Geo-, behavioral, or
other Targeted Display
Banner/ROS/Display
Sponsorships
Business directory
listings
Paid Search/Keywords
(AdWords)
Seattle

4.8%
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MARKETING INVESTMENT
Seattle area business marketing and
advertising budget
of annual revenue

Direct advertising spend is majority of budget
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MARKETING INVESTMENT
Ad & Marketing Spend
Proportions
Seattle
Direct Ad Spend
57%
“Non-Ad” Marketing Spend
43%

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Mobile & Social

Familiarity with and likelihood of
mobile use increasing
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MOBILE ON THE RISE
14%
43%
25%
12%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Very
familiar
Somewhat
familiar
Not very
familiar
Not at all
familiar
Don’t
know/Not
sure
14%
43%
25%
12%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Very likely Somewhat
likely
Not very
likely
Not at all
likely

Mobile marketing is expanding
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MOBILE ON THE RISE
Yes 15%
No 82%
Don't
know
3%
Conducted Mobile
Mobile Tactics Seattle
Mobile-enabled website 47%
Mobile advertising 47%
Response codes (QR
Codes)
47%
SMS (Text messaging) 37%
Mobile applications 26%
Mobile search 16%
Mobile video 16%
MMS (Rich media) 11%
Proximity (Near Field
Communication/Location-
Based)
5%
None of the above 5%

Seattle businesses are social
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SOCIAL MEDIA
86% are Social
3,700 average followers

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Successful Marketing Campaigns

With one location, Freshy’s
concentrates on geo-targeting
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Uses Total Market Xpress focused on
specific zip codes in key seasons
The insert approach provides ample space to
promote multiple facets of the business
Smart offer provides an easy tracking
mechanism
“ Our most successful marketing ever!
I am hooked.”
- Bryce Caldwell, Owner, Freshy’s
SUCCESSFUL MARKETING

Kasala focuses on target audience with
Pacific NW magazine
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Match print audience to target customer
Track product sales of items shown in
ads
SUCCESSFUL MARKETING
“ Pacific NW has served as a silent,
but effective sales person on our
team. After our ads run, the phones
start ringing and people come into
the store mentioning the specific
ads they have seen”
- Deborah Crump, Marketing Director, Kasala

Italian Home and Kitchen focuses on
geographical marketing with zoned ads
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In November and December ran 6 zoned ads
and saw a 330% ROI
Only advertise full priced items
“How did you hear about us?”
SUCCESSFUL MARKETING

American Friends Service Committee also
uses zoned advertising
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Ran in the Metro zone, Weekend Plus to
target people looking for things to do.
SUCCESSFUL MARKETING
“ We found, by asking people
orally, that The Seattle Times ads
were by far the most effective
method of bringing folks in.”
- Jeffery P. Smith, NW Indian Program Director,
AFSC West Region

Glazer’s Camera uses Seattle Times Digital
Plus to target photography enthusiasts
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Place their digital ads on sites catering to
photography enthusiasts
Use co-op dollars to increase their ad budget
Feature co-op partner in ad
SUCCESSFUL MARKETING

To develop the photo enthusiast in all
of us, Glazers hosts Photofest
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Event provides workshops &
educational sessions
Special section inserted in daily paper
reaches more than 569,000 readers
Costs of the section covered by
partners purchasing advertisements
Overruns for in-store promotion & event
day guides
SUCCESSFUL MARKETING

To push ticket sales, Fremont Oktoberfest
opted for high impact digital advertising
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 Ran an interstitial week of event to push
impulse ticket sales
 #1 referring site to event website
 Used promo codes to track ticket sales
“ seattletimes.com was the #1 referring
site to fremontoktoberfest.com. We’re
thrilled with the impressions and click
throughs.”
- Lacey Lybecker, Communications & Marketing
Manager, Bold Hat Productions
SUCCESSFUL MARKETING

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Question & Answers

Thank you.
Presented by
Director of Strategic Research
p:
e:
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Janet Farness
206-464-8782
jfarness@seattletimes.com

Methodology
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Conversion & Attribution Survey – Methods Statement
 The Conversion & Attribution Survey was in the field between July 25, 2012 and September 12, 2012.
 Survey questions were designed in partnership between Borrell Associates and various news media clients.
 All interviews were conducted online.
 Respondents were recruited to participate via emails sent to local business partners of local media from their lists of
past and present clients as well as prospects.
 A total of 6 newspaper companies participated in sending emails resulting in 720 U.S.-based businesses initial
responses with 392 fully completed interviews as of September 12, 2012.
 Responding businesses averaged $2.2M U.S. income with 33% reporting under $1M.
 Respondents also reported an average of $96.2K total annual expenditures on advertising and marketing, with 55%
spending under $25,000 total.
 Respondents reported a median of six (6) employees, with an overall mean of 35 full time employees.
 Surveys included 55 questions, including firmographics, typically requiring approximately 15-20 minutes to
complete.
Respondents were provided a general incentive of participation in a drawing for an iPad and, in some markets, an
additional prize. iPad drawing was held on or about October 15, 2012.
METHODOLOGY