E33: Everything Marketers Need to Know for 2026, With Josh Allen of Location3

Hosts: Michael Hyam and Liane Caruso 
Guests: Josh Allen, Vice President, Marketing & Sales at Location3.

Josh Allen of Location3 is here to discuss the franchise marketing landscape evolving at breakneck speed with AI, changing consumer expectations, and economic uncertainty creating both challenges and opportunities for brands.

Allen shared valuable insights from his company on the LFG Podcast on how franchisors can navigate this complex environment heading into 2026 while driving results for both brands and individual franchisees.

Podcast Summary: AI, Search, Privacy, and More Integral Marketing Information from Josh Allen at Location3

The Personalization-Privacy Paradox

One of the most significant challenges facing franchise marketers today is what Allen calls the “sweet science of marketing” – balancing consumer demands for personalized experiences with their equally strong expectations for privacy protection.

“Consumers increasingly want two things: they want personalization when it comes to marketing and advertising, but they want and increasingly expect privacy,” Allen explains. This creates a challenging environment where marketers must deliver relevant, meaningful content while navigating increasing restrictions on data usage and compliance requirements like GDPR.

The brands succeeding in this environment are those finding innovative ways to create personalized experiences without compromising consumer privacy – a delicate balance that requires both strategic thinking and the right technology tools.

The Economic Reality: Marketing as Investment, Not Expense

Despite economic uncertainty affecting many sectors, Allen emphasizes a critical point: marketing should never be the first thing cut when budgets tighten. “Always be marketing. It should never get turned off,” he advises, noting that brands who maintain their marketing presence during tough times are better positioned when economic conditions improve.

The key is adopting a performance-driven mindset, focusing on:

• Conversion quality over vanity metrics like impressions and clicks
• Customer lifetime value for repeat customers
• Data-driven decision making to optimize channel performance
• Testing mindset to identify what works in current market conditions

Allen points to the COVID-19 pandemic as a perfect example: “So many people turned off their marketing budgets, and then the people who had kept them on were the ones who were coming out on the other side a little bit better.”

AI and SEO: Evolution, Not Revolution

Contrary to the “SEO is dead” rhetoric that surfaces regularly, Allen sees AI as transforming rather than eliminating search optimization opportunities. The key is focusing on fundamentals rather than chasing every new feature.

His recommendations for SEO in an AI-powered search world:

• Focus on localized, meaningful content that answers specific customer questions
• Don’t chase AI overview placement as the primary strategy
• Maintain visibility in both AI overviews and traditional search results
• Prepare for continued evolution as Google integrates more AI features

“Trying to just figure out how to end up in that prompt response is probably a little bit misguided,” Allen notes. “The data continues to show that a lot of organic search activity, particularly for businesses, is very localized.”

Performance Max: Powerful But Not Standalone

Google’s Performance Max has been a topic of significant discussion among marketers, with mixed results leading many to question its effectiveness. Allen’s take is nuanced: Performance Max can be powerful, but it shouldn’t be used in isolation.

His recommendation: “At a minimum that baseline paid search campaign has a quality mix of brand and non-branded keywords and campaigns while integrating Pmax alongside that to tap into visual creative” – treating Performance Max as a complement to, not replacement for, traditional search campaigns.

The Fundamentals Still Matter

Despite all the talk about AI and advanced marketing technologies, Allen points to a sobering statistic from the Franchise Customer Experience Conference: 48% of franchisors still use the honor system to measure whether franchisees are investing in local marketing.

This highlights a critical gap in the industry. Before diving into advanced AI applications, franchisors need to master the basics:

• Proper analytics implementation and tracking
• Key conversion measurement beyond surface-level metrics
• Integration between brand and local marketing efforts
• Clear attribution and customer journey understanding

“If you don’t start there, I think it opens up the scenario where brands will find themselves in the same spot they are today a couple of years from now,” Allen warns.

The National-Local Integration Imperative

For franchise brands planning their 2025-2026 marketing strategies, Allen identifies clear alignment between national and local marketing as non-negotiable. This is particularly important for high-consideration franchise categories like senior living, pet care, or education, where the customer journey often begins with national brand awareness but culminates in local conversion.

Key elements of effective integration include:

• Cohesive strategy execution across all levels
• Proper attribution measurement throughout the customer journey
• Data utilization from CRM systems for audience-focused marketing
• Testing mindset for emerging channels like connected TV

Location3 Looks Ahead: Practical AI Applications

While AI dominates industry conversations, Allen advocates for a practical approach focused on testing and learning rather than wholesale transformation. For franchising, this means:

• Starting with brand-level testing before rolling out to franchisees
• Providing playbook materials to guide franchisee experimentation
• Focusing on integration rather than isolated AI tools
• Maintaining human oversight for strategic thinking and quality control

“AI doesn’t mean people and the human element and strategic thinking, critical thinking are being replaced,” Allen emphasizes. “It’s enabling us to be more efficient to drive more success.”

Listen to the full episode now to hear more from Josh and the LFG Podcast team!