Digital Word-of-Mouth Is Driving E-Mail, Reputation and Presence Management (ERPM) Platforms for SMB Advertisers

CHANTILLY, VA. (October 5, 2009) – The rapid growth of digital word-of-mouth through online reviews and social media presents a challenge for small and medium-sized business owners, who are often unaware of the online conversations taking place among consumers. BIA/Kelsey predicts this will change as SMBs adopt more sophisticated marketing practices that require advanced communications platforms for e-mail, reputation and presence management (ERPM). The firm forecasts revenues for ERPM to grow from $460 million in 2008 to $3.1 billion in 2013. The number of SMBs using ERPM will increase from approximately 500,000 to nearly 4 million during the forecast period. BIA/Kelsey plans to offer comprehensive coverage of this topic over the next few months during two upcoming webinars and its Interactive Local Media 2009 (ILM:09) conference in December.

“SMBs will soon have a window into digital word-of-mouth,” said Matt Booth, senior vice president and program director, Interactive Local Media, BIA/Kelsey. “There are too many disparate conversations going on through social networks, user reviews, message boards and online affinity groups for a small business to find let alone track manually. We’ve been watching ERPM closely over the past couple of years and believe the segment is poised to break through with solutions that enable SMBs to effectively manage their online reputations. The market has developed in such a way that ERPM is basically a white space that capital and technology will rush to fill.”

E-Mail, Reputation and Presence Management Defined

The e-mail segment of ERPM comprises subscription-based software-as-a-service providers and e-mail marketing agencies that tailor their solutions to the needs of SMBs. In 2008 this segment represented 64 percent of the ERPM market.

Reputation management is built on the aggregation of reviews and comments, including product and service mentions by consumers. Opinions are gathered from sources like Facebook, Twitter, Yelp, Citysearch and thousands of others. The data is aggregated into a simple dashboard whereby businesses can view their online reputation by monitoring digital word-of-mouth. BIA/Kelsey expects technology and partnerships to evolve to enable businesses to respond to consumers’ opinions, concerns and requests.

BIA/Kelsey defines presence management as “where” and “how” business data and information are located across Internet sources. A business may be listed in 100 directory sources. Presence management allows business owners to see how their businesses are displayed. BIA/Kelsey analysts expect presence management to transform into the ability to suggest corrections and clarifications to core business data. Further, presence will allow businesses to seamlessly promote themselves via outgoing messaging to numerous sites like Facebook and Twitter.

As part of its coverage of ERPM, BIA/Kelsey is presenting two upcoming webinars moderated by Matt Booth, with research presented by BIA/Kelsey Research Director Steve Marshall:

“The Communications Revolution: E-Mail, Reputation and Presence Management,” on Wednesday, Oct. 14, at 2 p.m. EDT, will provide an in-depth look at the unfolding business, market and what it means. For details and registration, visit: https://www1.gotomeeting.com/register/191044625.
“The Business View of E-Mail, Reputation and Presence Management,” on Thursday, Oct. 15, at 2 p.m. EDT, presenting SMB advertiser perspectives from companies currently testing alpha- and beta-release ERPM platforms. For details and registration, visit: https://www1.gotomeeting.com/register/823169025.

ERPM at ILM:09

ERPM will be a focus of BIA/Kelsey’s Interactive Local Media 2009 (ILM:09) conference (www.kelseygroup.com/ilm2009), Dec. 9-11 in Los Angeles, California. A number of sessions will touch on various aspects of ERPM, including:

Populating Local Content
Reputation – The New Driver for SMB Engagement
Making Money With/for SMBs
A Special Conversation With Yelp
Los Angeles SMB Panels: What Works for Me, What Doesn’t

ILM:09 is BIA/Kelsey’s annual conference devoted to digital media with a local focus. This event covers a range of important topics, including local search, mobile search, Internet Yellow Pages, vertical directories, Internet video, online classifieds and social media.

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