CPA Phone Calls – Local Advertising Opportunity

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Online and Mobile Affiliate networks are represented new opportunities to tap into the $21.7B local advertising market with automatically distributed ad inventory powered by CPA Phone Calls.

Experience level: Advanced
Target audience: Networks
Niche/vertical: Pay-Per-Call

Carl Holmquist, Founder, Freespee (Twitter @Freespee)

Published in: Business, Technology
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CPA Phone Calls – Local Advertising Opportunity

  1. 1. Tapping into the European SME budgets,in display advertisingCarl HolmquistFounder & CEO at FreespeeJanuary 8th, 2012
  2. 2. Meet Me• My first time in Las Vegas• Live 9 time zones from here, in Sweden• Spend more time on my smartphone than on my laptop computer• Founder of Freespee, a company that has been introducing the Phone Call as a New Currency in Internet Advertising in Europe since May 2008 What did I learn during these 3 years?
  3. 3. 1.I learned that there are certain trends
  4. 4. I spend more time on my smartphone than onmy laptop computer, and I’m not alone…Dailyminutes Mobile time spend of US Smartphone Users 180 160 Mobile App 140 Mobile Browse 120 81 Online Internet 100 66 Print - Newspaper 80 43 Print - Magazine 155 60 40 70 74 20 64 20 30 0 Jun 2010 Dec 2010 Jun 2011 On Internet On printSource: Comscore, Flurry, Alexa, eMarketer
  5. 5. In US, mobile spend growth is driven by bothmobile search and display$USDmillion Mobile ad spend forecast 2012 - 2015 5,000 396 Video (+69%) 4,000 Display (+51%) 3,000 1,600 Search (+57%) Messaging (+14%) 2,000 1,767 1,000 633 - 2010 2011 2012 2013 2014 2015Source: eMarketer 2011
  6. 6. The targeting opportunities are moreadvanced in Mobile Advertising
  7. 7. And, Mobile ads are more effective than onlineads for branding and driving purchase Mobile v.s. Online ad campaign effectiveness12.0% Online Ads10.0% Mobile Ads 8.0% +8. 4% 6.0% Best performers 11.3% can reach 5X 4.0% purchase results 2.0% 4.3% 3.4% 2.0% 2.0% 2.0% Average 0.0% Unaided Awareness Brand Favorability Purchase IntentSource: Insight Express 2010, Dynamic Logic 2011
  8. 8. 2.I learned that there is is a  problem! Local Display Advertising that supportsimmediate interaction between merchants and customers is not available
  9. 9. How big is the unsold inventory in mobileadvertising? 17% and dropping mobile inventory is increasing at a faster pace than mobile advertising budgets 10% and droppingSource: Smaato
  10. 10. Is it just a dream to increase mobile ads fillrate and achieve higher CPx? Better fill rate supported by Hyper Local Ads with 5-20X higher CPL Average fill rate today and very low CPMSource: Read Right Mobile,Smaato, Flurry
  11. 11. 3.I learned that there is a solution. 
  12. 12. In 2008,We started to powerSME Call Advertising programsBy working with Directory Publishers
  13. 13. 2008 through to 2011We develop a large SME advertiser ad inventory, but athin demand side (distribution) Online Directory Publishers Freespee Merchants
  14. 14. In 2011,We started to powerEnterprise Call AdvertisingprogramsBy working with Affiliate Networks
  15. 15. May 2011 through Jan 2012We develop a large call ads demand from affiliatepublishers, but a thin supply side Affiliate Publishers Freespee Merchants
  16. 16. We put them together Affiliate Publishers SME Display Ad Campaigns in Affiliate Networks Merchants
  17. 17. The result?Automated distribution ofDisplay Call Ads for10,000 SME campaigns100% Performance-based
  18. 18. Well-designed Local Advertising, high CTRsbut if the Ad server doesn’t support Geo targeting properly…Source: Dynamic Logic 2011
  19. 19. Publisher TV2 is a Danish Broadcaster with readers all over the country Display Ad Campaign Today’s lunch offers in Fredriksberg… • Copenhagen A Display Call AdsFredriksberg is a neighborhood in the city ofCopenhagen, Denmark
  20. 20. 7 restaurants within a radius of 500 meter, onlydisplayed for phones in that area
  21. 21. How many Clicked to Call?Post Click-through, 1 out of 5 visitors call60% of the calls qualified for commissionpayout (CR = 60%)
  22. 22. In total 800 restaurantsdistributed through7 neighborhood templates
  23. 23. Average CPL (Cost per Lead)Value for a callSME advertisers are willing to pay $4 to $60 per qualified call fortheir ad campaignAverage CPL value in SME Call Advertising programsis $25 per qualified call100% Performance-based CommissionSource: 4 million CPA Phone Calls powered by Freespee
  24. 24. Do you have access toHyper Local Display programs?
  25. 25. Thank you! Carl Holmquist Founder & CEO at Freespee Carl.Holmquist@Freespee.com +46 770 35 00 32
  26. 26.  How it works 5 Publisher displays Call 6 Target customers see Ads on the media Call Ads and make calls 4 Affiliate network 7 Network optimizes distributes Call Ads distribution in real-time 3 Freespee activates Call 8 Freespee tracks calls, and report Ads on Marketpla$e commission 2 Marketer enables Call 9 Advertiser pays qualified Ads on Marketpla$e Call Ads 1 Advertiser decides 10 Marketer designs new budget for Call Ads Call Ads campaigns

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