Driving Profitable Mobile Marketing

Campaigns with Offline Data John Busby, VP Marchex Institute

June 24th, 2012

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From The Wall Street Journal

This week... some of the world's biggest advertisers will huddle to see if what they can finally reverse what many see as the failure of Internet advertising to date. Obstacles include immature technologies, a lack of agreement on how to measure [success]... and very nature of the box-like "banner" ad.

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From The Wall Street Journal

This week... some of the world's biggest advertisers will huddle to see if what they can finally reverse what many see as the failure of Internet advertising to date. Obstacles include immature technologies, a lack of agreement on how to measure [success]... and very nature of the box-like "banner" ad.

August 16th, 1998

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Will Dollars Follow The Eyeballs in Mobile?

Now we have advertising on smartphones, and we’ve fallen into a comfortable, predictable rut: “It’s just like Web advertising on the PC, shrunk to fit”…

A too-easy answer is the market’s age: Mobile advertising is still in its infancy. But that’s an indefensible excuse: The first iPhones shipped in late June 2007…

“Mobile Advertising – The $20B Mirage”

Jean-Louis Gassee

June 10th, 2012

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What’s Different About Mobile?

Urgency ProximityOn Our Person

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Don’t Forget it’s a Phone

49% of businesses view calls as the #1 desired outcome of mobile campaigns**

65% of local searches result in CALLS to a business*

* Google, 2011** Forrester, 2011

Consumers conduct a mobile or voice search for a local business

Search results appear alongside a click-to-call button

Consumers click the icon and instantly make a live

connection with a business

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Mobile Advertising has Changed Our Call Behavior

57%

Calls on Desktop Calls on Mobile Calls on Apps

62%

7%

Consumers call a business or look for directions every other second from the Yelp Application

BIA/Kelsey 2012Yelp 2012

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BIA/Kesley forecasts 70 billion phone calls from mobile in 2016

2010 2011 212e 2013e 20143 2014e 205e 206e0

10000

20000

30000

40000

50000

60000

70000 Calls generated from paid search

Calls generated from organic search

Calls from mobile search

Internet Call Volumes by Channel (millions)

Source: BIA/Kelsey (2012)

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Purchase Oriented Searches Are Happening Everywhere in Mobile

“49% of mobile and tablet users reported using apps for local business searches.”

* comScore, Localeze 2012

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Mobile Fragmentation is a Major Challenge for Ad Measurement

App Usage Greater than Mobile Web Usage

IE10“Do Not Track”

Many Different Gadgets

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The Call Tracking Number and Redemption Codes Are Your Tracking Pixels

1-800-GRT-DATA

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A Customer Phone Call is a Major Data Marketing Opportunity

* Google** Forrester

Time of day

Caller ID

Area code

Frequency

IVR success

Call duration

Ad proximity

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Do Mobile Campaigns Deliver Customer Value?

SOURCE: Calls generated from Google Click-to-Call campaigns across multiple campaigns.

Data Corruption: All these show up as performing calls without deeper inspection.

Deeper Targeting: A small percentage of these will actually convert. How do advertisers reach the right ones?

Negative ROI: Spam and misdials generate costs, call center costs.

High quality calls that are answered and have the potential to convert.

CALLS

22%Potential new

customer

53%Existing

customers

25%Spam & misdials

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Not Every Call is Created Equal…Far From It!

Media Budget Calls Received Cost Per Call

Mobile Search $276,498 24,179 $11.45

Mobile Affiliates $40,410 2,640 $15.30

Many click-to-call campaigns treat all calls as having equal value or potential to convert.

* Marchex advertiser, May 2012

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Not Every Call is Created Equal…Far From It!

Tracking and measuring calls individually allows a truer measure of cost per QUALIFIED call and provides opportunity for improving ad spends.

Media BudgetCalls

ReceivedRepeat Calls

Service Calls

SPAM/ accidental

Calls

Short Calls

Quality Calls

CostQUALIFIED Call

Mobile Search

$276,498 24,179 1,046 5,948 2,151 7,333 7,693 = $36/qualified call

Mobile Affiliates

$40,410 2,640 113 218 187 829 1,347 = $30/qualified call

Bad calls / low conversion

Many of the keywords or publishers that drive the best CPC will have some of the worst CPQC, and cause you to move your budget in exactly the wrong way.

* Marchex advertiser, May 2012

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Looking at Cost Per Qualified Call Provides a Better Approach to Media Buying and Testing

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Inbound Calls Provide Audience Insights

EDUCATION

AGE CHILDREN MARRIAGE

HOME VALUE

INCOME

HOME OWNER

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Call Conversations Are the Richest Source of Data About How Customers Purchase

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Conversations Provide Conversion Data

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Conversations Show Gender Response To Advertising

Male

Female

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Lead Conversion Rate by Gender for Major Home Services Client

Marchex data 2012

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Conversations Show The Features That Drive Purchases

Featured Correlated with Reservations for Major Hotel Chains

airport breakfast fitness free parking pool restaurant view wireless0

0.5

1

1.5

2

2.5

* Marchex data, 2010

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Getting Started with Mobile Call Advertising

Pay Per Qualified Calls with Marchex

Only pay for calls you want – not for short calls, spam calls, repeat calls or customer service calls.

Access to all mobile advertising channels – search, SMS, directories, apps.

Clean Call technology to block unwanted SPAM calls before they hit your business

Full-service reporting and account management.

Full-service call tracking and analytics.

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THANK YOU

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John Busbyjohnb@marchex.com@JohnMBusby