John Busby's Presentation from Digiday Data Marketing Summit at Laguna Beach, CA - June 2012

1. Driving Profitable Mobile Marketing
Campaigns with Offline Data
John Busby, VP Marchex Institute
June 24th, 2012

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www.marchex.com

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www.marchex.com

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.
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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
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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
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www.marchex.com

7. What’s Different About Mobile?
On Our Person Urgency Proximity
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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
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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
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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)
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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
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12. Mobile Fragmentation is a Major Challenge for Ad
Measurement
Many Different App Usage Greater than IE10
Gadgets Mobile Web Usage “Do Not Track”
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13. The Call Tracking Number and Redemption
Codes Are Your Tracking Pixels
1-800-GRT-DATA
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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
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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.
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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
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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 Short Quality Cost
Media Budget accidental
Received Calls Calls Calls Calls 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
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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
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20. Call Conversations Are the Richest Source of Data
About How Customers Purchase
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21. Conversations Provide Conversion Data
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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
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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
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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.
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www.marchex.com

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