20 Oct A War Well Worth Fighting
In an interesting interview with Groupon Chairman Ted Leonsis, in the Chicago Tribune last week he reminisced about how back in the day as a senior executive for AOL, he spent a great deal of time in Tribune Tower. That’s because the Tribune Company made an early investment in AOL an investment that ultimately realized $2 billion according to Leonsis.
One wonders what ever happened to that cool $2-bil, huh?
Toward the end of the piece Leonsis marvels that the challenge for Groupon and its peers — Amazon, eBay, Google and other online pure plays — has not changed much in two decades:
“The amazing stat that hasn’t changed since I did work with the Tribune back in the early ’90s is that, as individuals, 80 percent of our spending is done within a 20-mile radius of our home,” he said.
I spent w-a-y too much time on Google trying to verify the “fact” that 80 percent of spending lies within a 20-mile radius of our homes only to find many others before me have tried to verify the same statistic and failed. This 2012 post by Greg Sterling on StreetFight is one of the best I found on the subject. Like Sterling, almost everyone who looks into this “fact” ends up concluding that the stat makes logical sense, but cannot be fully substantiated. So I will go with that, too.
The good news is that local media still hold the high ground in the battle for ad dollars in their neighborhoods. The bad news is that all the big online guns are pointed at the local media franchise.
The war for that 20-mile radius is a war well worth fighting. At Content That Works we believe local native advertising is a potent weapon that can help you win the battle against these online challengers.