Google is in a strong position to benefit the online-to-offline (O2O) economy on a large scale. In my SMX Next keynote statement last week, I discussed Google’s dominant position in linking the digital and physical worlds, Google My Business’ evolution, and the future of local distribution as a more divided trend.
Almost every ‘enterprise’ is a local business. The term “local business” is often misunderstood and usually refers to moms and pop stores and very small businesses. But any business that transacts offline or sells products and services in a physical location is effectively a local business. The logos below are as many local businesses as there are small businesses. This is because most of their transactions take place in the physical world (COVID-19 changes but more in a minute).
National and global brands that are “local businesses”
Online Influence Offline Costs. Most marketers have heard a statement that goes something like this: “About 80% of US disposable income is spent within 10 to 20 miles of home.” This suggests that it is common sense but not the basis of a single dataset or study. Anyone can do an in-depth analysis of US consumer spending statistics and you may come to the same conclusion. But it is largely apocryphal.
In 2017, however, Recess Development conducted a survey that reported, “More than 90% of consumers make most of their purchases within 15 minutes of home or work.” This includes items such as fuel, groceries, food, personal care, home and garden, recreation and retail.
Quad Lockdown has made online shopping more compelling and e-commerce has added triple digits to many categories. In 2019, e-commerce spending in the United States was about 600 600 billion. But the impact of consumer spending on the Internet is 20 times greater.
Robo and Bopes. In 2019, US GDP was tr 21 trillion (down this year). About 70% of this comes at the expense of consumers. According to several studies, approximately 81% of US members (90% of Internet users) research online before buying items locally. This includes product research, phone and address search, consultation reviews, and more. It is estimated that about ڈالر 12 trillion of the امریکی 21 trillion in US economic activity is somehow touched or directly affected by the Internet. This practice is often called “robo” or “ropo”: research online, buy or buy offline.
The Corona virus will strengthen online shopping practices as well as bring new shoppers online. In the first quarter of 2020, Hadaf said it saw five million new Target.com buyers. But 40% of these people are buying online and picking up at the store or on the curbside. BestBuy reported an increase in 250 e-commerce over the same period, with 50% of orders placed on local stores. This “BOPIS” hybrid model is gaining popularity and will be dominated by retailers who can do it well.
Google Maps refers to the “complete fireplace”
Google Maps ‘Digital Flickr’. One could call Google Maps the “digital flicker” of O2O activity. And Google My Business is its primary local data source. Although the company does not capture all O2O activity, a significant percentage of online research that results in offline purchases goes through Google. Google Maps is a kind of “real world UI”.
But it’s not just a place to find store times or contact information. Google Maps can detect the “complete funnel” – from discovery to consideration and transaction. Over the years, Google has added rapid conversion tools to maps: bookings / reservations, quote requests, food ordering, and messaging. These transaction tools solve many problems.
- When they click on a bad website that fails to block them, they reduce the “leakage”.
- They provide value to consumers and stabilize usage.
- They especially value the SMB platform.
- They help convert SMBs into advertisers.
Google monetizes some of the transactions on the platform, but most of its revenue is still generated from PPC advertising. Getting and retaining SMB advertisers has been costly and challenging for Google over the years. The SaaS subscription fee offers an interesting potential answer to this challenge. I thought Virtual Agent College was a premium services model for Google. However, it is being shut down. Still, G Suite is an example of a successful SMB sauce product that could lead to similar offers in the future.
Looking forward. The future of local search is more diverse and distributed experience than its past. Beyond the traditional text question in a box, it includes more visual content, enhanced reality (AR) and sound. Tools such as Google Lens or “Photo Bit Search” and Image Search enable users to use different inputs to access and purchase information. And AR is becoming more prominent in local search over time, as more digital content is added to the real world.
Finally, voice becomes the primary UI for new devices and categories, from virtual assistants to smart home hardware to car systems. It’s not always about “searching” but it is often. And behind it all is machine learning and rapid artificial intelligence.
in short. , The digital and physical worlds are becoming increasingly interconnected, and Google has established itself as a central mediator in these experiments – many times the commercial value of e-commerce – including job completion and transactions. There is a growing emphasis on.
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