The Biggest Mobile Opportunity Nobody Is Talking About

THE BIGGEST MOBILEOPPORTUNITY NOBODYIS TALKING ABOUTOctober 29, 2012

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 2010Source: Newspaper Associations of America. Carpe Diem Blog. 2www.marchex.com

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 3www.marchex.com

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) 4www.marchex.com

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 5www.marchex.com

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 6www.marchex.com

Why is Spend So Low on Mobile?Now we have advertising on smartphones, and we’vefallen into a comfortable, predictable rut: “It’s just likeWeb advertising on the PC, shrunk to fit”…A too-easy answer is the market’s age: Mobileadvertising is still in its infancy. But that’s anindefensible excuse: The first iPhones shipped in lateJune 2007…“Mobile Advertising – The $20B Mirage”Jean-Louis GasseeJune 10th, 2012 7www.marchex.com

This Device Makes Phone Calls RING RING 8www.marchex.com

Even Young People Use The Phone 9www.marchex.com

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 outcomes1 Google Mobile Data2 Kelsey Study 2010 10www.marchex.com

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 2016Data from BIA/Kelsey Report, “Call-Based Ads: Eliminating the Unknown From Advertising.” May 29, 2012 11www.marchex.com

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 2016Source: BIA/Kelsey (2012) 12www.marchex.com

Where Are Calls Coming From in Mobile? 13www.marchex.com

What Does Click-To-Call Look Like? 14www.marchex.com

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. 15www.marchex.com

Uh-Oh… 25% Spam & misdials 53% Existing customers 22% Potential new customer 16www.marchex.com

Over all mobile channels, 22% of mobile calls arepotential new customers… 25% Spam & misdials 53% Existing customers 22% Potential new customer 17www.marchex.com

Best Practice 1:Use a Tracking Number Order tracking Embed them in Track campaign numbers online assets effectiveness (800-TRACKING) (Search, Display, etc.) 18www.marchex.com

The Call Tracking Number is Your Tracking Pixel 1-800-GRT-DATA 19www.marchex.com

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% 20www.marchex.com

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 21www.marchex.com

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 22www.marchex.com

Best Practice 4:Establish a Minimum Duration 23www.marchex.com

Marchex: We Make Phones Ring = 24www.marchex.com

25www.marchex.com

Best Practice 5:Analyze the Data  Time of day  Caller ID  Area code  Frequency  IVR success  Call duration  Ad proximity 26 26www.marchex.com

Calls Provide the Richest Data For UnderstandingConsumer 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 27www.marchex.com

Example: Which Degrees Do Consumers Ask For? 700 600 500 400 300 200 100 0 Design Culinary Fashion Media Photography Film Technology 28www.marchex.com

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 29www.marchex.com

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. 30www.marchex.com

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The Biggest Mobile Opportunity Nobody Is Talking About

by John Busby on Oct 31, 2012

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