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Driving Profitable Mobile Marketing
Campaigns with Offline Data
John Busby, VP Marchex Institute


June 24th, 2012
2
www.marchex.com
3
www.marchex.com
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.




                                                            4
www.marchex.com
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




                                                            5
www.marchex.com
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




                                                              6
www.marchex.com
What’s Different About Mobile?




         On Our Person   Urgency   Proximity




                                               7
www.marchex.com
Don’t Forget it’s a Phone
                                                                               49% of businesses view calls as
         65% of local searches result in
                                                                               the #1 desired outcome of mobile
         CALLS to a business*
                                                                               campaigns**




                     1                            2                                   3




         Consumers conduct a mobile or       Search results appear alongside      Consumers click the icon and
         voice search for a local business        a click-to-call button              instantly make a live
                                                                                   connection with a business


* Google, 2011
** Forrester, 2011

                                                                                                                  8
www.marchex.com
Mobile Advertising has Changed Our Call Behavior



                                             62%
                            57%                             Consumers call a business
                                                            or look for directions every
                                                            other second from the Yelp
                                                            Application




                  7%


       Calls on Desktop   Calls on Mobile   Calls on Apps



BIA/Kelsey 2012
Yelp 2012

                                                                                           9
www.marchex.com
BIA/Kesley forecasts 70 billion phone calls from
mobile in 2016


                                               Internet Call Volumes by Channel (millions)


        70000                  Calls generated from paid search

        60000                  Calls generated from organic search

                               Calls from mobile search
        50000

        40000

        30000

        20000

        10000

                0
                            2010        2011          212e           2013e   20143    2014e   205e   206e




Source: BIA/Kelsey (2012)

                                                                                                            10
www.marchex.com
Purchase Oriented Searches Are Happening
Everywhere in Mobile
                                  “49% of mobile and tablet
                                  users reported using apps for
                                  local business searches.”




* comScore, Localeze 2012


                                                                  11
www.marchex.com
Mobile Fragmentation is a Major Challenge for Ad
Measurement




           Many Different   App Usage Greater than       IE10
             Gadgets          Mobile Web Usage       “Do Not Track”




                                                                      12
www.marchex.com
The Call Tracking Number and Redemption
Codes Are Your Tracking Pixels




          1-800-GRT-DATA




                                          13
www.marchex.com
A Customer Phone Call is a Major Data
Marketing Opportunity



                                    Time of day
                                    Caller ID
                                    Area code
                                    Frequency
                                    IVR success
                                    Call duration
                                    Ad proximity




* Google
** Forrester

                                                     14
www.marchex.com
Do Mobile Campaigns Deliver Customer Value?

                                1
                                      Data Corruption: All these show up as
                                      performing calls without deeper inspection.
                                                                                                          2
                                                                                                              Negative ROI: Spam
                                                                                                              and misdials generate
                                                                                                              costs, call center costs.


                                                                                    25%
                                                                                         Spam &
                                                                                         misdials                   3
   CALLS                                            53%                                                                 Deeper Targeting: A small
                                                                                                                        percentage of these will actually
                                                                                                                        convert. How do advertisers
                                                      Existing
                                                                                                                        reach the right ones?
                                                     customers
                                                                                           22%
                                                                                          Potential new
                                                                                           customer
                                                                                                                        High quality calls that are answered
                                                                                                                        and have the potential to convert.




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

                                                                                                                                                               15
www.marchex.com
Not Every Call is Created Equal…Far From It!
Many click-to-call campaigns treat all calls as having equal value or
potential to convert.



                   Media         Budget             Calls Received      Cost Per Call

             Mobile Search       $276,498              24,179              $11.45

            Mobile Affiliates    $40,410                2,640              $15.30




* Marchex advertiser, May 2012

                                                                                        16
www.marchex.com
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.



                                                      Bad calls / low conversion

                                                                   SPAM/
                                   Calls     Repeat    Service                     ShortCall   QualityC           Cost
 Media                Budget                                      accidental
                                  Received    Calls     Calls                         s          alls         QUALIFIED Call
                                                                    Calls
Mobile
                    $276,498       24,179    1,046      5,948       2,151           7,333       7,693     =   $36/qualified call
Search
 Mobile
                     $40,410       2,640      113        218         187             829        1,347     =   $30/qualified call
Affiliates




 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

                                                                                                                                   17
www.marchex.com
Looking at Cost Per Qualified Call Provides a Better
Approach to Media Buying and Testing




www.marchex.com
Inbound Calls Provide Audience Insights




        AGE             CHILDREN            MARRIAGE                INCOME




            EDUCATION              HOME VALUE          HOME OWNER




                                                                             19
www.marchex.com
Call Conversations Are the Richest Source of Data
About How Customers Purchase




                                                    20
www.marchex.com
Conversations Provide Conversion Data




                                        21
www.marchex.com
Conversations Show Gender Response
To Advertising


                        Lead Conversion Rate by Gender for Major Home Services Client




                    Female




                      Male



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




Marchex data 2012


                                                                                               22
www.marchex.com
Conversations Show The Features That Drive
Purchases

                                 Featured Correlated with Reservations for Major Hotel Chains

                 2.5



                       2



                 1.5



                       1



                 0.5



                       0
                           airport   breakfast   fitness   free   parking   pool   restaurant   view   wireless



* Marchex data, 2010


                                                                                                                  23
www.marchex.com
24
www.marchex.com
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.



                                                                                            25
www.marchex.com
THANK YOU
          John Busby
          johnb@marchex.com
          @JohnMBusby
                              26
www.marchex.com

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DMS: Opening Workshop with Marchex: Driving Profitable Mobile Marketing Campaigns with Offline Data

  • 1. Driving Profitable Mobile Marketing Campaigns with Offline Data John Busby, VP Marchex Institute June 24th, 2012
  • 4. 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. 4 www.marchex.com
  • 5. 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 5 www.marchex.com
  • 6. 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 6 www.marchex.com
  • 7. What’s Different About Mobile? On Our Person Urgency Proximity 7 www.marchex.com
  • 8. Don’t Forget it’s a Phone 49% of businesses view calls as 65% of local searches result in the #1 desired outcome of mobile CALLS to a business* campaigns** 1 2 3 Consumers conduct a mobile or Search results appear alongside Consumers click the icon and voice search for a local business a click-to-call button instantly make a live connection with a business * Google, 2011 ** Forrester, 2011 8 www.marchex.com
  • 9. Mobile Advertising has Changed Our Call Behavior 62% 57% Consumers call a business or look for directions every other second from the Yelp Application 7% Calls on Desktop Calls on Mobile Calls on Apps BIA/Kelsey 2012 Yelp 2012 9 www.marchex.com
  • 10. BIA/Kesley forecasts 70 billion phone calls from mobile in 2016 Internet Call Volumes by Channel (millions) 70000 Calls generated from paid search 60000 Calls generated from organic search Calls from mobile search 50000 40000 30000 20000 10000 0 2010 2011 212e 2013e 20143 2014e 205e 206e Source: BIA/Kelsey (2012) 10 www.marchex.com
  • 11. Purchase Oriented Searches Are Happening Everywhere in Mobile “49% of mobile and tablet users reported using apps for local business searches.” * comScore, Localeze 2012 11 www.marchex.com
  • 12. Mobile Fragmentation is a Major Challenge for Ad Measurement Many Different App Usage Greater than IE10 Gadgets Mobile Web Usage “Do Not Track” 12 www.marchex.com
  • 13. The Call Tracking Number and Redemption Codes Are Your Tracking Pixels 1-800-GRT-DATA 13 www.marchex.com
  • 14. A Customer Phone Call is a Major Data Marketing Opportunity  Time of day  Caller ID  Area code  Frequency  IVR success  Call duration  Ad proximity * Google ** Forrester 14 www.marchex.com
  • 15. Do Mobile Campaigns Deliver Customer Value? 1 Data Corruption: All these show up as performing calls without deeper inspection. 2 Negative ROI: Spam and misdials generate costs, call center costs. 25% Spam & misdials 3 CALLS 53% Deeper Targeting: A small percentage of these will actually convert. How do advertisers Existing reach the right ones? customers 22% Potential new customer High quality calls that are answered and have the potential to convert. SOURCE: Calls generated from Google Click-to-Call campaigns across multiple campaigns. 15 www.marchex.com
  • 16. Not Every Call is Created Equal…Far From It! Many click-to-call campaigns treat all calls as having equal value or potential to convert. Media Budget Calls Received Cost Per Call Mobile Search $276,498 24,179 $11.45 Mobile Affiliates $40,410 2,640 $15.30 * Marchex advertiser, May 2012 16 www.marchex.com
  • 17. 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. Bad calls / low conversion SPAM/ Calls Repeat Service ShortCall QualityC Cost Media Budget accidental Received Calls Calls s alls QUALIFIED Call Calls Mobile $276,498 24,179 1,046 5,948 2,151 7,333 7,693 = $36/qualified call Search Mobile $40,410 2,640 113 218 187 829 1,347 = $30/qualified call Affiliates 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 17 www.marchex.com
  • 18. Looking at Cost Per Qualified Call Provides a Better Approach to Media Buying and Testing www.marchex.com
  • 19. Inbound Calls Provide Audience Insights AGE CHILDREN MARRIAGE INCOME EDUCATION HOME VALUE HOME OWNER 19 www.marchex.com
  • 20. Call Conversations Are the Richest Source of Data About How Customers Purchase 20 www.marchex.com
  • 21. Conversations Provide Conversion Data 21 www.marchex.com
  • 22. Conversations Show Gender Response To Advertising Lead Conversion Rate by Gender for Major Home Services Client Female Male 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Marchex data 2012 22 www.marchex.com
  • 23. Conversations Show The Features That Drive Purchases Featured Correlated with Reservations for Major Hotel Chains 2.5 2 1.5 1 0.5 0 airport breakfast fitness free parking pool restaurant view wireless * Marchex data, 2010 23 www.marchex.com
  • 25. 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. 25 www.marchex.com
  • 26. THANK YOU John Busby johnb@marchex.com @JohnMBusby 26 www.marchex.com

Editor's Notes

  • #8: Success!
  • #9: Success!
  • #10: You should be a call advertiser if…
  • #11: You should be a call advertiser if…
  • #13: Success!
  • #15: Success!