optimizing display advertising for offline outcomes

Optimizing Display Advertising for Offline OutcomesJohn Busby, SVP Consumer Insights & MarketingAdarsh Nair, Senior Director Product & Engineering

November 4, 2015

2Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

Marchex is a mobile advertising analytics company that connects online behavior to real-world, offline actions.

Fortune 500

Enterprise clients

300M+Annual call connections

30Patents granted &

pending

400Employees

50%% of Employees in Product &

Engineering roles

Agenda

New research on mobile marketing & attribution

Introducing Marchex Display Analytics

4Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

We all love predictions…

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Unfortunately, they don’t all come true…

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AFC

Here is a set of predictions on this year’s NFL season from SI’s Doug Farrar.

NFC

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AFC

Here is a set of predictions on this year’s NFL season from SI’s Doug Farrar.

Patriots                               Ravens                                ColtsChargers EaglesLionsFalconsSeahawks

NFC

8Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

What about this prediction?

in next 4 years

2014 2015 2016 2017 20180

10

20

30

40

50

60

70

Desktop Mobile

$18.9B

$57.5B

eMarketer US Digital Ad Spending by Format, March 2015 (US)

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Leave blank for report page…

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Here is what we wanted to understand from the study…

The goals that marketers have for their mobile advertising programs1

The challenges marketers face in the mobile advertising ecosystem2

How marketers are trying to address these challenges3

11Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

Finding #1 – Most mobile advertisers are looking for offline results.

66% of respondents listed offline goals…

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The most natural and common response to a mobile search is a phone call or in-store visit.

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Mobile-influenced offline commerce is substantially bigger than online transactions.

??Offline

Sale

Online

Sale

Calls or Store visit

Online Transactions

$300B

Online Transactions

$1T+

AD

14Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

Calls happen…

Calls Driven to Businesses From Smartphones, by Format

93B annual calls from mobile today, growing to 162B by 2019

Ann

ual C

alls

(bill

ions

)

SearchTraditional Display

Landing Pages

Native Social

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And they convert really really well…

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And consumers are generally buying high-ticket items by phone

Marchex, 2015

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All adding up to more than $1 trillion in “click-to-call commerce” this year.

Marchex, 2015

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Finding #2: Measurement & Attribution are the biggest challenges.

How challenging are the following aspects of mobile advertising?

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Finding #3: Offline & In-Store is the most difficult purchase to measure…

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Top spenders of programmatic display advertising…

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Leave blank for report page…

Agenda

New research on mobile marketing & attribution

Introducing Marchex Display Analytics

What have we learned?

“Mobile display spend is projected to be $10B in 2017”

“50% of offline conversions are not being attributed”

“Marketers have no visibility into offline conversions that were influenced by display advertising”

24Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

Unlike online sales marketers have limited visibility into offline sales from calls that were influenced by display.

Onl

ine

to o

nlin

e

Impression event Sale

Brand Website

Consumer visits Brand website at a later time

Display impression is given credit

$View

through

Onl

ine

to O

fflin

e

User calls the brand at a later time

Impression event

?Unable to give credit to

display impressionSale

No visibility

25Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

Display influences offline sales from calls primarily through view-through – a consumer converts after a past interaction with a display ad.

Display Ads

View through Sales SaleConsumer calls Brand’s number after viewing the ad in the past

> 97%*

Click through SalesSale

Consumer calls the number on the landing page after clicking the ad

< 3%*

Display Ads

* Parallel from online world and anecdotal data from clients

26Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

Display is influencing $1 Trillion in offline sales

$37 Billion Display Spend

$1 Trillion Offline Sales

View through Sales Consumer calls Brand’s number after viewing the

ad in the past

Source:

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Introducing

MarchexDisplay Analytics

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Marchex Display Analytics enables marketers to increase ROI and decrease CPA

Display Spend Display Impression Total Online Conversion(eCom)

Conversion(Call)

$700K 126M 9,190 600

Conversion $400K $90K

Today you only track eCommerce conversions . . .

29Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

Marchex Display Analytics enables marketers to increase ROI and decrease CPA

Display Spend Display Impression Total Online Conversion(eCom)

Conversion(Call)

$700K 126M 9,190 15,812

Conversion $400K $350K

. . . now you can track $750K Offline and Ecommerce conversions against $700K spend!

Today you only track eCommerce conversions . . .

30Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

Introducing Marchex Display Analytics. The only solution that provides a real-time view-through conversion metric for inbound calls.

Accurate ROI for display spend

“Getting visibility into offline conversion driven from Display helped me reduce my CPA by 50%

Agile & smarter shifts in display tactics (creative, placement)• Publisher• Placement• Device• Creative

31Proprietary and Confidential @marchex@johnmbusby @jnair_marchex

Attribution

The challenges with Display analytics for inbound call conversions

1 Web and in-app measurement

2 Real time data3

“Seems to be in lockstep with our point of view. View-though measurement will drive down CPA. We'd love to maybe be alpha/beta partners.”

“Measuring offline outcomes is big and we are doing this for store outcomes.”

“You are on the right track in connecting mobile display ad to call conversions especially the view through scenario. Industry needs this.”

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Marchex Display Analytics – how it works

In flightMarchexDisplay Analytics

Campaign exposure data

Anonymized Phone number Sale($)

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Key Challenge – Attribute offline sales from calls to display spend

Offline Identifier• Phone number• Email

No common identifier to join online and offline domain

Offline purchase over phone

Online Identifier• Cookie• Device ID

Online exposure

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Marchex has the unique capability to use phone number as the key to understanding online to offline behavior

* All PII data is anonymized and used in aggregate only

Built from analyzing online to offline transactions across 100M users*

AUDIENCE GRAPH

ONLINE OFFLINE

Anonymized Phone numberCookieDevice ID

Organically growing Continuously refreshedBuilt by analyzing calls

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Join our Beta!

How do you get going with Marchex Display Analytics?

Sign up is easySign Up At Booth #205 | Marchex.com/display-beta

www.marchex.com