Today, Fast Company did a piece on a local Austin bagel company that offered a free bagel to anyone who joined their Facebook fan page. 3 days later, they had over 330,000 fans. All I can say is…wow!

Facebook says that Einstein’s Bagels is the first instance of a business offering something free through an instant digital coupon, although I would imagine there are some people who would contest that. Einstein’s simply blew it out of the park and smartly parlayed that into a pitch for a news piece to a major technology publication. Great work! I am very proud that Austin is being so well represented by our local businesses.

This does however raise some interesting logistical questions as to how you can use digital and mobile coupons and track those effectively. Most web based or mobile coupon applications require you to either print out the coupon (which is very inconvenient in our “right now” world today), or it requires the vendor to somehow validate the coupon at the point of sale. In this case, I’m not totally sure how Einstein’s will do this but they have been working directly with Facebook to “insure” the campaign is a success.

Loyalty programs are another thing altogether. Even with a printed coupon or fan status validation, you still don’t know who redeemed what, when, and where. You don’t know who your best customers are, who is your greatest champion, or how to reward them. Companies like Foursquare, Yelp, and Gowalla are using their GPS check in features to allows visitors to let it be known how often they are visiting a business. This presumably could be a nice avenue to develop a coupon application and loyalty program, but with Foursquare and Gowalla being game based applications you would need your customers actually using and playing those games.

What digital coupons need is real time validation and tracking. We here at PandaMedia actually have this product near completion that will not only allow you to use the social graph of your customers, but track coupon redemption, customer loyalty, and rewards. And the local business itself controls who uses the application. Its is web based mobile application, so it truly can be viral without platform limitations. If you want to learn more, check out the information here. If you are interested in trying the product, contact us here so we can put you on the list.

As most of you now know, Google Local Maps have become the latest place local businesses need to be if they want to take advantage of the vast amount of traffic out there searching for their products and services. Here is a snapshot of what they look like:

By rolling out these listings, Google has given the power back to the businesses themselves and significantly hurt local directories that were too dependent upon its search results for traffic. Many of the sites out there like Citysearch and Superpages (seen above) have seen significant dips in traffic. Once you get below the fold of the page, the remaining organic traffic represents a very small percentage of overall click throughs.

Yelp on the other hand hasn’t seen a drop at all…in fact their traffic has risen due to good marketing, seo, a Facebook Connect implementation, and a host of other positives. It’s no coincidence that Google made a $500 million offer to acquire Yelp shortly after rolling out the Google Local Business Center because of its stranglehold on the local business review market. Yelp is also doing some innovative things such as stepping into the geolocation space by introducing their “check in” feature to compete with the likes of Foursquare and Gowalla, something that ultimately could be an avenue for coupons and loyalty programs if they can figure out the host of difficulties in that market.

The great news is that Google is now fully in the game. Sometimes it’s easier not to root for the 800 lb gorilla in the room, but competition is good and the local marketing space is rich with it. Now you have a “free” option. Google’s dedication to providing relevant search results independent of ads has made SEO a viable marketing option for local business again, allowing these companies that represent such a huge portion of our economy to benefit from the great ROI it provides. Local business never really had a chance against the directories…until now. In addition to the map, local businesses are also showing up in the organic results under the maps providing potentially 3 spots on a page if you are doing Adwords.

To further make this area of marketing a compelling topic is the proliferation of mobile devices and applications. Google is doing some crazy things like speech to GPS to maps for directions, integration of ads (like billboards) into Google Street View, and bar code scanners to let visitors to your store download information about your business. Check out this video of their Nexus One 

The bottom line is there are 10 spots on their Maps and every business needs to work towards getting there, especially as the integration of local business info with new technologies from Google keeps on coming. This requires equal parts SEO and point of purchase marketing. Forget the yellow pages, online directories, and all that other stuff. Until someone dethrones Google as king of the internet, the maps will be the best bang for your buck.

Social media is a 2 way street. While such a simple statement, I think many of us can be too entrenched in a broadcast marketing world to fully grasp what that means. I can tell you from personal experience that until you get over that hump of feeling like you aren’t making any headway, you may think you are marketing through social media…but you really arent. Social media is about opening a bilateral line of communication between buyer and seller, and building customer loyalty and brand awareness. It’s not about putting up a fan page and getting frustrated when they didnt come.

You will (if you haven’t already) hear from some overzealous bloggers telling you traditional marketing is dead, social media is the future be all end all, and various other hyped up statements. This may further confuse some on just how this new medium is supposed to replace what has always worked relatively well in the past. Don’t listen to it. Local business still does a ton of offline advertising, and one of the simplest ways a local business can accelerate the growth of a social media following is through using traditional avenues like email, print, tv, and point of purchase marketing to make customers aware of your pages on Facebook, Twitter and any other social application. Set up your pages and make people aware of them at any opportunity you can. With the majority of users also having mobile applications for their social networks, your opportunity to grab them is getting increasingly better as that adoption rises. I promise that those who put the time in now will not be left behind as traditional marketing does indeed continue to lose share to the internet. Plus you will have a better relationship with your customers, and a better product or service because of it.

Remember, this isnt a “broadcast medium”. Today’s consumer is more and more distrustful of traditional media because it’s so impersonal. Have conversations with your customers about your company. Offer promotions. Run contests. Disseminate news and content. Test new products and services. Create loyalty programs. Recognize your best customers. And every time someone tries to interact with your company, interact back. People who can interact with you will undoubtedly be more loyal customers. And to me personally, it’s rewarding to run a good, accessible business.

I will be soon talking more about viral promotions and loyalty programs that use social media and mobile devices to drive business. Until then, be innovative in your marketing and you will find that these new avenues bring back the very thing that made the great market economies of the past thrive…an open and personal interaction between vendor and customer.

PandaMedia is proud to launch its new website and blog dedicated to helping local businesses navigate the internet marketing landscape in 2010 and into the future. This year, local companies of all types will finally be able to efficiently market themselves online without relying on pay per click or costly local directory listings. Google Local Search, social networking sites, and easy to use content management systems will put the power of marketing back where it belongs…in the hands of the business owner.

Our blog will provide internet marketing news and tips as they apply to helping your business become more successful bringing in local customers, as well as integrating these new communication channels with your existing marketing efforts. Mobile advertising will also show exponential growth in 2010, leveraging a growing population of users searching locally, tapping their social networks, and even letting you know their location!

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Happy New Year!

Seemingly on the other side of the worst recession in recent memory, 2010 is poised for a rebound and marketing on the internet will continue to be a big part of that recovery. A lot of businesses cut advertising spends and spent 2009 exploring avenues such as social media as inexpensive ways to marketing their business. Since there isnt exactly a handbook on how to do it, this year will be a year that many businesses spend their time and money on “owning” their customers instead of paying to bring them in from major directories and portals. Here are a few trends for 2010.

1. Google Local

Up until 2009, directories such as Yelp, Citysearch, and Superpages dominated for locale based searchs such as “dallas plumber” or “miami jewelry store”. This was due to effective SEO from millions of pages of active content. But Google has shown to be quite proficient at making money ;) and through its Google Maps has created an opportunity for local businesses to reach 90% of the search traffic for these types of queries. Google Local still takes SEO skill, but now you are vying against true competitors and not deep pocketed directories who ultimately charge you for that traffic through their subscription fees.

2. Geolocation

Mobile devices are now deeply tied into GPS coordinates, and this gives local businesses the opportunity to take advantage of a person’s proximity to them when broadcasting promotions and specials. Companies like Foursquare and Gowalla lead the race in active users but have yet to show any significant signs of an advertising product or business model for local companies. But rest assured this will be a huge topic and place for innovation in 2010, and local businesses have the opportunity to reap huge rewards if they can effectively tap into it.

3. Social CRM

Social CRM (customer relationship management) is not a word that’s quite on the mainstream radar yet, but one I believe will in some form or the word or another show up more and more in 2010. A lot of local businesses I talk to struggle with understanding how they should use social media to drive more business, and more importantly than that have overlooked how it can tap into the clientele you already have. Promoting your business to people you have already have had a relationship with is easier than ever, and new tools and methodolgies will help business owners take advantage of that fact.

4. Facebook Connect and the Social Graph

Social graph is another word not getting a lot of play outside of Facebook enthusiasts, but tapping into friends and neighbors of people your business already has a relationship with will become easier in 2010. Facebook Connect is leading the way for a portable social identity and graph, and can easily be implemented on any site including Wordpress. With the ability to comment, register, and see which friends also on another website, every business out there can take advantage of the potential business in a persons social network.

5. Manage Your Own Message

It wasnt long ago that we had to send over a word document or email with changes we needed made to our website, if you arent a technical person and/or spend most of your time running your business. Now with the emergence of fantastic content management systems tied into social media channels, non-technical business owners can manage their own message and content through their own website, and easily syndicate that content through outlets such as Facebook and Twitter. Websites need updates every few years, and with content management and social media applications now so easily accessible, this is the biggest update needed to date in the internet’s brief history.

2010 is going to be a great year and as it has always been in the past, those that work hard and stay active with their marketing will come out on top. I hope this insight helps us all think about where internet marketing for local business is headed.

With both Google and Bing striking deals with Twitter to index tweets and include them in search results, the natural question to ask is “How does this affect my business?”. A lot of local businesses are having a hard time understanding how Twitter specifically fits into their marketing plan, and this deal with the major players in search will hopefully make that picture seem a bit more clear.

As with a Facebook fan page for a local business, Twitter is nothing more than a communication channel to send out updates, promotions, coupons and news to current and prospective customers in your area. While the rest of the world uses it to tell you what they are doing, follow celebrities, or get the latest news, Twitter for local business has the ability to be a great marketing tool to actually sell something. The goal is to muster as many followers as possible through social networking, as well as by promoting your social media avenues through other channels (like flyers, emails, offline ads, etc) and in your physical store locations. This audience uses the web (and increasingly mobile devices) to stay abreast of all the things they deem important, including information and deals on the products they buy and services they use. With one of the biggest trends in 2010 being location based marketing, the true potential of Twitter has yet to be seen. But real time search can begin to show benefits right away.

As Twitter increasingly integrates with search, the opportunity to expose your promotions and coupons to active users goes up dramatically. A person who previously searched for “austin furniture sale” may have clicked through to a site optimized for that search term, but not actually having a sale. The person either realizes that, or shows up expecting a sale and is left upset at the fact that there isnt one. Now, the ability to “broadcast” sales and promotions through Twitter and have them indexed by Google makes that actively ready to buy and Google using customer far more likely to find your business and visit your location.

Thats just one example of how Twitter can change marketing, and how the lines between social media and search will blur. The ability to find people on Twitter by location and keyword is already here and makes starting to garner a local following possible right now, no matter what the local business. One thing is certain…these things will happen and those who have built a following will be best prepared to take advantage of this exciting new avenue.