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See The Entire Hyper-Local Marketing Business Collapsed Into One Intense M&A Target Graphic

Source: http://www.businessinsider.com/see-the-entire-hyper-local-marketing-business-collapsed-into-one-intense-ma-target-graphic-2012-12

There are a LOT of hyper-local marketing companies in business right now. Everyone knows Groupon and LivingSocial, of course. And Facebook and Google also have local offer businesses.

But there are also tons of smaller ones, and sub-units tucked into larger businesses — like AOL’s Patch and MSNBC’s EveryBlock.

Some of the businesses are publishers of local information (Patch, and YP, for instance). And others are hyper-local marketing businesses like Groupon or The Weather Channel. Google, of course is both. They all have one thing in common: They’re in the business of helping local businesses advertise themselves to local customers.

We decided to try and display them all in a chart based on size, and whether they are likely to acquire, or be acquired, by other companies. (With all due respect to LUMA Partners, let’s call this an InsiderScape.)

The result suggests that the business has organized itself into two types of companies: a small set of large, acquisitive players; and a large set of small, non-acquisitive players. (There are very few large players that don’t have acquisition histories, and very few small players that are scaling up via leveraged acquisitions.)

Crucially, this huge number of companies are all doing essentially the same thing — digitally connecting local businesses with their consumers. That suggests this is a commodity environment in which companies are likely to experience severe downward pressure on their ability command prices from merchants. And that means consolidation, through M&A, is likely.

Check it out, and let us know if we got anything wrong:

hyper-local graphic

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mf See The Entire Hyper Local Marketing Business Collapsed Into One Intense M&A Target Graphic


Here’s an interesting look at how the platform wars are playing out across smartphones and tablets.

GeekWire landed an internal slide from USA Today that lists how many times its application has been downloaded. USA Today has a wider, more geographically diverse readership than most other newspapers, giving us insights into the ecosystem that we might not get from the typical measurement companies.

If USA Today’s internal statistics are any indication, the Kindle Fire is blowing other Android tablets out of the water. The slide shows 260,000 downloads of its app for Kindle Fire compared with only 130,000 for other Android tablets. That’s a two-to-one ratio.

The Kindle Fire still trails the iPad by some ~2.6 million downloads, but that’s unsurprising. What’s more impressive is how much headway the Kindle Fire has made in the short time since its release.

Further, you can see that the iPhone app is still beating the Android app in downloads. And Windows Phone has a lot of work to do.

usa-today-kindle-fire

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Sites like Kickstarter and many others all cater to people with ideas they believe can make it big, but who need money to get them off the ground. The community supports the idea, everyone chips in, and with luck and enough interest and the right amount of money, the product gets made and the contributors usually get first cut or a special perk. Still, even though Kickstarter gets a lot of press, it’s not necessarily the best one for your idea.

Photo remixed with an original by dinadesign/Shutterstock.

The Best Sites to Raise Money and Get Your Ideas Off the Ground

For The Most Attention: Kickstarter

Kickstarter is the major player in this space, and for good reason. The service gets a lot of media attention, and even though the majority of Kickstarter projects don’t go anywhere, it’s become the go-to destination for anyone looking to crowd-fund their projects thanks to a few high-profile projects that managed to raise a lot of money. It’s not the biggest crowd-funding community, and it’s not even the one with the best track record, but it’s incredibly easy to use, popular with angel investors and people looking for the next big idea to invest in and get behind, and well organized. Idea creators can set up their profiles for free, founders can pledge as much or as little as they choose, and no money changes hands until time runs out or the project is fully-funded. If the project is fully funded, Kickstarter takes 5% off the top, and the rest goes to the inventor or creator to make their idea happen.

The Best Sites to Raise Money and Get Your Ideas Off the Ground

For App-Builders, Game Designers, and Developers: IndieGoGo

IndieGoGo is actually larger than Kickstarter, and more people there use it for more types of projects. The site takes 4% off the top of your fundraising if you reach your funding goal, and encourages creators and developers to offer perks to the community for funding their projects. Unlike some of its competition, IndieGoGo also has its doors open to charities and non-profits. The site is particularly popular with software and app developers, although all sorts of creative projects are up on the site for funding, including documentary and independant films, education projects, and international aid projects. IndieGoGo also has the benefit of being a global site, available to users around the world.

The Best Sites to Raise Money and Get Your Ideas Off the Ground

For Inventors and Gadget Creators: Quirky

Quirky has an excellent track record, and some of our favorite gadgets started as Quirky ideas. The process of getting your idea in front of the Quirky community is a bit more involved than at other sites. You submit your idea, the community weighs in first on whether or not it’s an idea that could be made into an actual product before it goes in front of the world for fundraising. That’s the key, while other sites focus on creative endeavors, most Quirky projects are tangible products that can be manufactured and sold. The Quirky community is active and engaged in idea building and product design and development, and a lot goes on long before the idea ever gets on the site for presale fundraising. Pricing is on a sliding scale—people who get in early can get lower prices than people who get in later, and once the product is made, Quirky can work to manufacture it themselves, or work with a major retail partner to get it on store shelves everywhere.

The Best Sites to Raise Money and Get Your Ideas Off the Ground

For Musicians: Bandcamp

We touched on this topic a bit in our previous story on how to release music online so music-lovers can get to it, but while SoundCloud was one of our favorite options for releasing your music for free, allowing people to remix it, and comment on it, Bandcamp is another great solution for musicians looking to set up a free storefront on the web to allow people to buy and download their music directly. Artists and fans both love Bandcamp, and the service handles the entire payment platform, from set-your-own-price albums and songs to artists with a mix of free and paid songs in their discography. Artists can also sell merchandise through their stores, and Bandcamp takes a slice off the top depending on the artist’s sales. Fans and music lovers on the other hand get a social platform where they can follow and interact with their favorite artists, get alerts when new music is released, and discover new artists through their friends.

The Best Sites to Raise Money and Get Your Ideas Off the Ground

For Crafty Types: Etsy

Crafty types are already well aware of Etsy and how the platform works. When people who made their own hand-made goods, arts, and custom crafts wanted an online storefront that catered more to their needs than a general auction site like eBay, Etsy was born. The site has dozens of categories, including clothing, art, jewelry, household accessories, and more. While most people know Etsy as a craft-lovers haven, the site is also home to a number of stores that manufacture products you wouldn’t associate with “arts and crafts,” like wall decals, custom motorcycle helmets, and even edible crafts like homemade cookies and beef jerky. Where other similar sites help you get seed money for an idea, Etsy is more of a traditional store, meaning you have to have your idea off the ground and your product ready for sale—even if it’s a single item—before you can sell it.

The Best Sites to Raise Money and Get Your Ideas Off the Ground

For Global Users: RocketHub

Many of these sites limit their membership to users in the United States, but RocketHub is one of the largest global communities dedicated to crowd-funding new ideas. RocketHub combines a traditional crowd-funding site where individuals can promote and raise money for their own ideas and pet projects with a funding bank where people with inspired ideas can connect with sponsors, non-profits, and funding groups who are willing to share some cash with a particularly motivated or passionate individual. The service works much like Kickstarter or IndieGoGo—sign-ups are free, and the site takes a 4% cut.


Different crowd-funding sites have different goals and different audiences. Depending on the type of idea you have and the audience you want to reach, you have an array of sites to choose from, and this is just the beginning. For example, if you have a random request or want to get the crowd’s help in funding a life event like a wedding or a vacation, you can try GoGetFunding, and if you’re an industrial designer, Yanko Design is a great resource for like-minded designers.

Whichever site you choose to get your ideas off the ground, make sure it’s one where the community is aligned with and supportive of your ideas, and you’ll have no trouble raising the funds needed to make it a reality. Have you used any of these sites to crowd-fund a project or idea? Share your experiences in the comments below.

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Tuesday, February 7th, 2012 Uncategorized No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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