John Busby's presentation from Seattle Interactive Conference, October 2012

1. THE BIGGEST MOBILE
OPPORTUNITY NOBODY
IS TALKING ABOUT
October 29, 2012

2. What Happened to the Newspaper Business?
Newspaper Advertising Revenue Adjusted for Inflation
Millions of 2012 Dollars
$70,000
$60,000
Print Only
$50,000
$40,000
$30,000
$20,000
$10,000
1950 1960 1970 1980 1990 2000 2010
Source: Newspaper Associations of America. Carpe Diem Blog.
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www.marchex.com

3. The Reason, of Course, is Time Spent Digitally
Ad Spend Time Spent
43%
40%
29%
22% 23%
≈
16%
11%
9%
6%
1%
TV INTERNET MOBILE PRINT RADIO
Sources: VSS, Mary Meeker (KPCB), comScore, Alexa, Flurry
Analytics
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www.marchex.com

4. Why is Spend So Low on Mobile?
“Add all the bells & whistles
you want to banner ads...”
Form Factor
Sources: Forbes (author: Gliad de Vries, VP Outbrain)
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5. Why is Spend So Low on Mobile?
“49% of mobile and tablet
users reported using apps for
local business searches.”
Fragmentation
of Media
Sources: comScore, Localeze
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6. Why is Spend So Low on Mobile?
“40 percent of clicks are
essentially worthless.”
“Up to 50% of the impressions
served on... mobile... are from
"fat finger" taps.”
Measurement
Sources: gigaOm, TradeMob, Goldspot, Business Insider
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7. Why is Spend So Low on 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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8. This Device Makes Phone Calls
RING RING
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9. Even Young People Use The Phone
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10. Consumers Prefer Phone Calls, So Do Businesses
62 65
1 2
% %
of consumers call a of businesses value calls
business from a local the most over other
search, the most over advertising outcomes
other outcomes
1 Google Mobile Data
2 Kelsey Study 2010
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11. How Big Will The Mobile Search Market Be?
Desktop vs. Mobile Local Search Forecast
140,000
Local searches U.S. (mobile)
120,000
Local searches U.S. (desktop)
100,000
81 Billion
Millions
80,000
≈
60,000
40,000
20,000
0
2010 2011 212 2013 2014 2015 2016
Data from BIA/Kelsey Report, “Call-Based Ads: Eliminating the Unknown From Advertising.” May 29, 2012
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www.marchex.com

12. How Big Will The Mobile Calls Market Be?
Internet Call Volumes by Channel
70000
60000
50000
40000
Calls generated from
30000 desktop search
Calls from mobile search
20000
10000
0
2010 2011 2012 2013 2014 2015 2016
Source: BIA/Kelsey (2012)
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13. Where Are Calls Coming From in Mobile?
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14. What Does Click-To-Call Look Like?
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15. You Should Be A Call Advertiser If:
 You take appointments or reservations
 You address urgent needs
 You have a physical location
 You sell something expensive
 You sell a complex product
 Your product has multiple choices
 On the desktop, your prospective customers fill out forms
 Your customers want to know your hours or if products are
in stock.
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16. Uh-Oh…
25%
Spam &
misdials
53%
Existing
customers
22%
Potential new
customer
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17. Over all mobile channels, 22% of mobile calls are
potential new customers…
25%
Spam &
misdials
53%
Existing
customers
22%
Potential new
customer
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18. Best Practice 1:
Use a Tracking Number
Order tracking Embed them in Track campaign
numbers online assets effectiveness
(800-TRACKING) (Search, Display, etc.)
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19. The Call Tracking Number is Your Tracking Pixel
1-800-GRT-DATA
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20. Best Practice 2:
Click-to-Call & Click-to-Landing Page
.
Emergency Dentist Medicaid or Child Dentist
Call from Ad 50% 33%
Call from Landing Page 50% 67%
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21. Best Practice 3:
Use an IVR to Determine Intent
Thank you for calling Bug
Blasters, Seattle’s Best Pest
Control. If you are calling
Integrated IVR about new service, please
press 1. If you are a current
customer, please press 2.
New Support
Service
Contact
Details
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22. Best Practice 3:
Use an IVR to Determine Intent
 Filters robo-dialers
 Qualifies intent
 Provides real-time
Integrated IVR
reporting for
optimization
New Support
Service
Contact
Details
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23. Best Practice 4:
Establish a Minimum Duration
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24. Marchex: We Make Phones Ring
=
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25. 25
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26. Best Practice 5:
Analyze the Data
 Time of day
 Caller ID
 Area code
 Frequency
 IVR success
 Call duration
 Ad proximity
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27. Calls Provide the Richest Data For Understanding
Consumer Intent
Are there two actual humans
talking to one another?
No Conversation 1
No
Yes
Is the conversion conducted
Non-English
primarily in English? No
Yes
Does the conversation
Non-Product or
concern a previous
sale, appointment, arrangem No Service 2
ent, or relationship?
Yes
Is a customer or a potential
customer calling about a
product or service offered by No
New Business 3
the advertiser?
Yes
Follow-Up 4
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28. Example: Which Degrees Do Consumers Ask For?
700
600
500
400
300
200
100
0
Design Culinary Fashion Media Photography Film Technology
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29. Example: Hotel Features Associated with Purchases
Featured Correlated with Reservations for Major Hotel Chains
2.5
2
1.5
Hotel Brand 1
Hotel Brand 2
1
Hotel Brand 3
0.5
0
airport breakfast fitness free parking pool restaurant view wireless
* Marchex data, 2010
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30. Call Experience is Critically Important to Conversion
* Data is hold time (seconds) as measured by “time to first word” by caller
** Category data is based on average of hold times in 2011 for select Marchex advertisers.
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