Small Brands are Crushing Big Brands on Local Search
As we know, most consumers use their devices to find dining, retail, and other MULO (multi-location) options that are convenient to them and have the products and services they want (as well as the consumer reviews, directions, and specials they seek). However, larger brands (who can afford to invest in mobile local search optimization) often ignore or devalue this step in the consumer spending journey.
A recent study by SOCI reveals that brands are losing as much as $54B in revenue each year by not paying enough attention to the intricacies of local search. Keeping data robust, accurate, and current and locations up-to-date is key to consumer satisfaction and brand loyalty.
As AI shapes search, focusing on these aspects of local search becomes even more critical.
An analysis of close to 3K brands across 3M locations resulted in an effectiveness score for each brand. Smaller regional brands often outperform the MULO giants.
We talked to Damian Rollison, Director of Market Insights at SOCI about why that may be happening.
Why do many smaller brands fare better in search?
“Through hundreds of conversations with multi-location companies, we at SOCi know that larger brands, though they may have strong national visibility, very often neglect the priorities that can win them business in local channels. For example, a well-known brand like Starbucks may do very well for branded searches like “Starbucks near me” but very poorly for more competitive searches like “coffee shop near me.
For midmarket and regional brands, competing for these placements in keyword searches is already top of mind, so they’ve more often done all the right things including optimizing their profiles, responding to reviews, building local audiences on social platforms, and so on. Larger brands, especially, are the ones leaving millions on the table for failing to engage consumers at the local level.”
What may be behind the resistance of large MULO (multi-location) brands to hire a company like SOCI?
“The primary reason is not fully appreciating the local opportunity, which we estimate at $54.1B per year for U.S. multi-location companies. It has also historically been challenging to convince many larger brands to take the trouble to engage with local consumers.
For example, many large brands consider responding to reviews and Google Q&A burdensome and unscalable—even if they know it’s a best practice. But modern AI-powered solutions like SOCi Genius are finally helping to make these goals a reality for larger brands.”
What benefits does SOCI bring to brands that other similar companies might not?
“SOCi’s CoMarketing Cloud is the first platform of its kind that can do the work of 1,000 marketers. The platform’s brain, Genius AI, harnesses best-in-class applied AI to analyze location data, recommend high-impact tasks, and automate local marketing at scale. This effectively provides a data scientist and trained marketer at every location.”
For a complete ranking of which brands outperform others in the local search arena based on SOCI’s Local Visibility Index, see the complete study here.
For more on the future of local search, MULO marketing and technology trends, and the keys to consumer delight and loyalty, join us at Street Fight LIVE on November 7th, at Meta’s HQ in Chicago.
