WHAT YOU

NEED TO KNOW

ABOUT

CLICK-TO-CALL

#

John Busby

Marchex

@JohnMBusby

#SMX #13C

October 1, 2013

#

2

5 Fun Facts About

Phone Calls

3

55%

“Online to Offline” is Massive, & Way Bigger Than

E-Commerce

Source: Forrester Research

2011 2012 2013 2014 2015 2016

Online-to-Offline

Pure Offline

Pure Online

of shoppers use

smartphones to

find stores 40%of retail sales are

‘research online,

buy offline’ ($1T)

50% Growth

<10% Growth

327

1,812

1,660

4

For National Campaigns, There Are Four Types of

Calls From Search Ads

Source: Marchex Data 2013

26%

2%

30%

42%Sales Calls

Robocalls & Spam

Misdials

Customer Service

5

Use a Call Tracking Number As Your

Tracking Pixel

22%

Potential new

customer

53%

Existing

customers

25%

Spam &

misdials1-800-GRT-DATA

In mobile, your call tracking should match the sophistication of

your online tracking.

6

Use a Call Tracking Number As Your

Tracking Pixel

25%

Spam &

misdials1-800-GRT-DATA

Time of day

Caller ID

Area code

Frequency

IVR success

Call duration

Ad proximity

7

An Integrated IVR Determines Intent

Sales

Thank you for calling the

Seattle Princess Inn, Seattle’s

Finest Hotel. If you are calling

about a new reservation,

please press 1. If you are

calling about an existing

reservation, please press 2.

Integrated IVR

Existing

Local Office

Directions

Your IVR must be linked to your call analytics data.

8

Mining and Scoring Calls Provides the Richest

Source of Data About Your Customers

Are there two actual humans

talking to one another?

Is the conversion conducted

primarily in English?

Is a customer or a potential

customer calling about a

product or service offered by

the advertiser?

Does the conversation

concern a previous sale,

appointment, arrangement,

or relationship?

Yes

Yes

Yes

No

No

No

No

No Conversation

Non-English

Non-Product or

Service

New Business

1

2

3

Follow-Up 4

Yes

9

But How Do You Make

Local Advertising Work?

10

NATIONAL LOCAL ADVERTISING

National Local advertising campaigns are

executed centrally and targeted locally.

• Funded by national brand with shared accountability from the

local business

• Customization to fit the local taste and geography

• Speak the language of local business – in-store visit or a phone

call… NOT CLICKS OR IMPRESSIONS

11

Three Perspectives On National-Local

Local BusinessNational Brand Consumers

12

The National Perspective:

Source: Marchex (2013)

Competition

2xThe Cost to Drive a Lead

When There is Local

Competition

Who Competes in The Auction For

Branded Searches?

• National Brand

• North Seattle

• South Seattle

• Bellevue

• Kirkland

• Lead Generator

• Affiliate

13

Lead Capture Is Essential

Source: Marchex (2012, 2013)

Multifamily Housing

40% unanswered calls

Automotive

25% unanswered calls

For most local

business categories,

the avg. rate of

unanswered calls is

20%

14

Other Challenges of a Decentralized Approach

EconomicsBrand Consistency

15

The Local Business Perspective

Choice in Marketing Programs

“can be overwhelming”

Avg. Number of Media Channels Used By Local Businesses

0

1

2

3

4

5

6

7

2007 2008 2009 2010 2011 2012

Source: BIA/Kelsey (2012)

16

Customer Acquisition Programs Key

Source: BIA/Kelsey (2012)

Ad Spend Primarily for Acquisition

at 7x more than for Retention

39.80%

43.70%

39.00%

LCM Wave 14 (4Q 2010) LCM Wave 15 (4Q 2011) LCM Wave 16 (3Q 2012)

Local Businesses: Percentage of Business from New Customers

(Last 12 months)

17

The Consumer Perspective

RING RING

62%of consumers call a

business from a local

search, the most over

other outcomes

1

Source: Google (2012)

18

URGENCY IS ANOTHER FACTOR

Sources: Priceline, Marchex

70% - 80% of mobile hotel and car rental bookings are for same-day.

19

MOBILE CONSUMERS ARE

Sources: Marchex (2013)

NEW PROSPECTS

20

Marchex is Mobile Advertising &

Technology Company

=

Patents Granted and

Pending

27Customer

scale

+100K +$130MAnnual Call

Revenue

100MsAnnual Call

ScaleTotal People /

Engineering

400 / 50%

CALLS

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