Localist’s Blair Glubb on why the NZ Post-backed directory isn’t flogging a dead horse
In the last edition of NZ Marketing magazine, BCG2′s planning director Abe Dew wrote something of an open letter to Localist and Yellow Local and put forward his views on why the ‘if you can’t beat ‘em, join ‘em’ corporate start-ups looked likely to fall into the same category as Telecom’s Ferrit. Not surprisingly, Localist chief executive Blair Glubb disagreed. He responds to some of the claims and outlines its plans for acceleration after what he says is a strong performance in the six months since launch.
Localist’s mission is to be the place Aucklanders come to find out ‘what’s good around here’ and, despite launching only mid-year, has already cracked 250,000 user sessions a month. From a standing start, some 50,000 Auckland businesses are now listed in our local search engine. We’ve got double the traffic anticipated coming to the site, and some great examples of businesses who are getting strong return for their investment.
The first six months involved experimenting with the popularity of content types from local news and events to customer reviews and photos. In doing so, we have attracted tens of thousands of posts from Aucklanders including contributions of ratings and reviews, talk, events, news and photos.
The company’s rewards programme, called the100, has been a key factor in making the site an active living and breathing hub for loyal users. Each month we reward top contributors with prizes and access to special events.
Our iPhone and Android apps include the ability for people to check-in to locations to scout for local offers, along with customer ratings and reviews that point people to the best businesses nearby. Since June we have amassed some 6000 of these user reviews.
New homegrown applications such as AdMonkey®, Localist’s way of creating templated ads in a fully digital environment, have helped to cut layers of time and cost out of the typical print production process.
In September Localist signed an agreement with Google as a Premiere SME partner to sell Adwords packages to companies needing help with search engine marketing.
Our new technology approach and much sharper pricing than incumbents has been part of the attraction of Localist for customers. Small businesses have received a more effective means to connect with customers, and a less costly way to reach prospects.
Many companies tell us they know they need to be online, but don’t know how. Localist’s end-to-end offering will ultimately move from online reputation management, through web site management, to SEM and content builder solutions.
Our printing of a local product and services guides is part of a product strategy to ‘join the dots’ between online and offline worlds. For example, top-rated businesses from localist.co.nz are now being featured in the print books.
Despite inevitable commentator predictions of print media decline, Localist research this year shows that print is still widely used by certain customer groups. Market feedback shows that many advertisers are getting results.
Clearly having 800,000 books in homes helps to build the Localist brand. But it also creates an obligation to embed a sustainable approach into our business model. We’ve done this by adopting sustainable printing and delivery processes, and by printing on 100% carbon neutral paper. We were thrilled to be a People’s Choice finalist in the Sustainable Business Awards, and to also pick up the Emerging Large and Corporate Business Award at the Northern Sustainable Business Network Awards just last month.
Our print presence also creates ‘pull-through’ to the digital world where consumers can get more information about a particular business they want to research – like ratings, reviews, more detail on products and services, and offers.
We are aiming to take online marketing one step further into reputation management. This will allow small businesses to better establish a name for themselves as being trusted and recommended by customers, a way of spreading goodwill via digital word of mouth.
The inspiration for Localist’s development has mainly come from overseas companies such as Yelp and Foursquare. While global search engines continue to play a ‘wide-receiver’ role in the New Zealand market, Kiwis have been looking for deeper, richer local content for some time.
Localist has leveraged our owner New Zealand Post’s success with Kiwibank by building our revenue acquisition and content generation approach on the bank’s success in developing new products and acquiring scale at the expense of traditional incumbents.
Our strategy to avoid traditional ‘pay for priority’ models is working, and on our site businesses earn their place at the top of search. Search is based around a combination of relevancy, best reputation and best content.
Localist is now selling our seventh and eighth local guides and will fast-track the next stage of digital development. We have no plans to slow down and the company is now looking at national expansion.
abe dew
December 5, 2011
To paraphrase Mandy Rice-Davies' testimony in the Profumo affair: "Well he would say that, wouldn't he."
drop
December 5, 2011
Abe I think you'd be better advised keeping your head low on this one mate #oldschool
Nathaniel Flick
December 5, 2011
I was working on an app nearly identical to this in 2009 (which coincidentally had exactly the same tagline, "What's good around here") and the goal to me then was to create a storehouse that Google would want to buy.
It worked for Finda!
I'm still not sold on the printed directory, it really seems to be a foot in the past, though it behooves a NZ Post company to utilise the waning post service in this manner.
Don't get me wrong, I believe in the ratings space, I'm just not sure Google is going to want to buy Localist now after its finally started putting energy into promoting its own ratings system through Google Search.
rob
December 5, 2011
I've leafed through the printed directories. They're good for door stops or lining a cat tray. The content on the site is not useful, as the 'reviews' are often nothing more than extended ads for the businesses. Give it 18 more months.
Researcher
December 6, 2011
I am not sure anyone is convinced by any of this. These kind of corporate 'start ups' are becoming something of a joke. This should have been an opportunity to create a fantastic pure play digital product.
It is clear that Blair and Post lost their nerve and went back to what they know and trust. In a corporate start up of this kind it would be hard enough to deliver a compelling and successful digital or print offering. Trying to deliver both has lead to neither being particularly good and the feeling that each. rather than complementing, is hampering the other.
I would be surprised if Post hang on for too long in this endeavour, even with a weakened competitor in Yellow, they do not appear to be achieving the necessary cut through.
This will be an expensive cautionary tale for Post in how not to act in the digital space. Once again another Telecom 'marketing whizz' has persuaded a corporate to burn money on a vanity digital project. The money torched on this little baby will make Telecoms Ferrit look like a sensible toe in the digital water.
Jack
December 6, 2011
Lulz
bryntas
December 6, 2011
In reference to Nathanial's comment, I can't speak for Google wanting to buy Localist, or their work on a rating system of their own… but I have seen that Google are displaying Localist's ratings in their SERP.
DV
December 6, 2011
Advertisers would be better off spending their money on content creation, social media, sem and quality seo strategies than advertising with a directory like localist. At least that way when Localist does fall down the advertisers will still be getting a return from their investment.
Kevin T
December 6, 2011
We're a web developer and typically 50-75% of my clients online leads come via a Google search and/or AdWords. It's rare to find more than 2-3% from the likes of Locallist, Finda or Yellow. Why are these minor directories still in business??
Jonathan Dodd
December 7, 2011
Blair has to be wary of the fact that when you get beyond the Bombay Hills into smaller centres, the printed Yellow Pages directories are still used quite a bit. This is because in smaller towns the directories aren't the unwieldy behemoths they are in Auckland, and pretty much everything in them is close-by and local anyway. Hence, outside Akld, Wgtn & Chch, they're a solution to a problem that doesn't exist.
Hmmm....
December 7, 2011
Yeah…..nah.
the observer
December 8, 2011
250,000 user sessions a month across 50,000 businesses makes it a pretty hefty cost-per-view for those paying for listings