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)

1. Tapping into the European SME budgets,
in display advertising
Carl Holmquist
Founder & CEO at Freespee
January 8th, 2012

3. 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?

4. 1.
I learned that there are
certain trends

5. I spend more time on my smartphone than on
my laptop computer, and I’m not alone…
Daily
minutes
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 print
Source: Comscore, Flurry, Alexa, eMarketer

6. In US, mobile spend growth is driven by both
mobile search and display
$USD
million 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 2015
Source: eMarketer 2011

7. The targeting opportunities are more
advanced in Mobile Advertising

8. And, Mobile ads are more effective than online
ads for branding and driving purchase
Mobile v.s. Online ad campaign effectiveness
12.0%
Online Ads
10.0% 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 Intent
Source: Insight Express 2010, Dynamic Logic 2011

9. 2.
I learned that there is is a

problem!
Local Display Advertising that supports
immediate interaction between merchants
and customers is not available

10. How big is the unsold inventory in mobile
advertising?
17% and dropping
mobile inventory is increasing
at a faster pace than mobile
advertising budgets
10% and dropping
Source: Smaato

11. Is it just a dream to increase mobile ads fill
rate and achieve higher CPx?
Better fill rate
supported by
Hyper Local Ads
with 5-20X
higher CPL
Average fill rate
today and very
low CPM
Source: Read Right Mobile,Smaato, Flurry

12. 3.
I learned that there is a
solution. 

13. In 2008,
We started to power
SME Call Advertising programs
By working with Directory Publishers

14. 2008 through to 2011
We develop a large SME advertiser ad inventory, but a
thin demand side (distribution)
Online Directory Publishers
Freespee
Merchants

15. In 2011,
We started to power
Enterprise Call Advertising
programs
By working with Affiliate Networks

16. May 2011 through Jan 2012
We develop a large call ads demand from affiliate
publishers, but a thin supply side
Affiliate Publishers
Freespee
Merchants

17. We put them together
Affiliate Publishers
SME Display Ad
Campaigns
in Affiliate Networks
Merchants

18. The result?
Automated distribution of
Display Call Ads for
10,000 SME campaigns
100% Performance-based

19. Well-designed Local Advertising, high CTRs
but if the Ad server doesn’t support Geo targeting properly…
Source: Dynamic Logic 2011

20. 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 Ads
Fredriksberg is a neighborhood in the city of
Copenhagen, Denmark

21. 7 restaurants within a radius of 500 meter, only
displayed for phones in that area

22. How many
Clicked to Call?
Post Click-through, 1 out of 5 visitors call
60% of the calls qualified for commission
payout (CR = 60%)

23. In total 800 restaurants
distributed through
7 neighborhood templates

24. Average CPL (Cost per Lead)
Value for a call
SME advertisers are willing to pay $4 to $60 per qualified call for
their ad campaign
Average CPL value in SME Call Advertising programs
is $25 per qualified call
100% Performance-based Commission
Source: 4 million CPA Phone Calls powered by Freespee

25. Do you have access to
Hyper Local Display programs?

26. Thank you! Carl Holmquist
Founder & CEO at Freespee
Carl.Holmquist@Freespee.com
+46 770 35 00 32

28.  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