Attribution Success In The Age Of Mobile

June 12th, 2014

More leads, Less cost

2

Attribution Success In The Age Of Mobile…

“A problem

well stated

is a problem

half solved.”

3

What actions do mobile users take when

converting offline?

Google and ipsos. “Our Mobile Planet: Understanding the Mobile Consumer.” May 2012 http://www.ourmobileplanet.com

51% 48%

Visited a Store Called a Store

4

Your best friend you never knew about is

reaching out to you, right now…

Google and ipsos. “Our Mobile Planet: Understanding the Mobile Consumer.” May 2012 http://www.ourmobileplanet.com

85% of mobile search

triggered calls to

stores happen

within 5 hours of

initial search

80% of mobile search

triggered store

visits happen

within 5 hours of

initial search

5

“A problem well stated is a problem half

solved.”

Calls + In Store Visits ≈

Mobile Attribution

6Google and ipsos. “Our Mobile Planet: Understanding the Mobile Consumer.” May 2012 http://www.ourmobileplanet.com

#blessed

7

… Calls are not going away. In 2015, More Than50 Billion Consumer Calls To Businesses Are Predicted

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

PCs

2009 2010 2011 2012 2013 2014 2015

Glo

bal

Un

it S

hip

men

ts (

M)

Mobile Devices

Source: BIA.Kelsey, June 2012Katy Huberty, Ehud Gebium, Morgan Stanley Research, Data and Estimates as of 2/11

Global unit shipments of desktop PCs & notebook PCs vs. smartphones & tablets 2009 – 2015E

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

An

nu

al Calls in

M

Calls from Mobile Search

8

Call Attribution is a Black Box

*BIAKELSEY, JUNE 2012

3

Mobile

AdCredit Card

Call

1. How many new customer calls did I get?

2. What is the true CPA of my mobile campaigns?

3. Which KWs have higher Intent?

Desktop

AdLanding

page

Web

siteCheck

out

Click

Credit card

Pixel fires and tracks new customer sale

9

New Customer, Quality Conversation

3

Desktop

AdLanding

page

Web

siteCheck

out

Click

Credit card

Call

Credit card Mobile

AdCall IVR

Call Tracking to

Offline Sale

1 2 3

Quality

Call

Call

Recording &

Analysis

Pixel Fires on call and uses referring URL string to tie online data to offline calls

10

Learning about

calls, and

having some

food.

11

Problems we can solve today that tie

mobile online spend to offline attribution.

We don’t use detailed call analytics to influence ad

spend.

We don’t know which campaigns/keywords are driving

offline sales.

We don’t know how offline information can influence

ad spend.

3

1

2

4

We don't know which campaigns/keywords drive new

customers.

12

Call analytics gets you offline attribution1

Using Google Value Track and Call Analytics together can help advertisers gain a

wealth of information to tie back to offline attribution.

13

09:0

9

09

:59

00:00

01:26

02:53

04:19

05:46

07:12

08:38

10:05

11:31

12:58

Average Existing Customer Ext. Duration Average New Customer Ext. Duration

Call D

ura

tio

n

Source: Marchex Performance Data for Home Security Client

Q2 2013: 95,000 phone calls analyzed

Call Duration ≠ Call Quality1

14

CONSUMER

IVR PRESS

Source: Marchex Performance Data for Home Security Client

Q2 2013: 95,000 phone calls analyzed

68%

24%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Existing CustomerExtension

New CustomerExtension

No ExtensionPressed

Branded Mobile Search

CONSUMER

IVR PRESS

4%

47% 49%

0%

10%

20%

30%

40%

50%

60%

Existing CustomerExtension

New CustomerExtension

No ExtensionPressed

Non-Branded Mobile Search

All keywords do not perform the same1

15

New Customer Calls = Increased ROI2

MARCHEX

IVR

1

2

3

EXISTING

CUSTOMERS

NEW

CUSTOMERS

SMALL

BUSINESS

CUSTOMERS

3%OF ALL CALLERS

CALLERS

FROM

SEARCH

23%OF ALL CALLERS

74%OF ALL CALLERS

16

CALL

FILTERING

DATA

1

2

EXISTING

CUSTOMERS

NEW

CUSTOMERS

MARCHEX

DRIVEN

CALLERS

in 2013

Source: Marchex Performance Data for Home Security Client

Q1 – Q4 2013: 300,000 phone calls analyzed

13% 87%

Repeat Callers (Non-Billable)

New Callers (Billable)

New customers call more than once2

17Sources: Marchex Chome Security Client Residential Call Analysis - March 2014

200+ Phone Call Conversations Analyzed

4%

6%

4%

86%Alarm Support

/ Billing

Upgrade /

New Service

1 in 4Cancellations

is From

Movers

1 in 3Upgrades

is From

Movers

Customer Service

There is value in existing customers too2

18

Tracking performance by keyword3

Pizza

NyQuil

Journey

Returning Customer

Sale - $20 Peperoni Pizza

New Customer

Sale - $10 NyQuil

Repeat Caller

No Sale - Conversation

about Steve Perry

KeywordCall Tracking

NumberReverse

Lookup

Offline Action

Outcome

19

Actionable data to improve ROAS3

Individual Call Tracking improvements Month over Month:

23% decrease in Cost Per Sale 49% Increase in Leads Delivered

10% increase in Ad Spend 42% Increase in Offline Sales

Month Leads Ad Spend Cost Per Sale Sales

January 1,794 $231,085.24 $975.04 237

February 2,669 $253,323.08 $751.70 337

Why did performance improved?

• Increased bids & budgets on days when users were converting

• Increased bid modifiers on hours when users were converting

• Decreased bids in hours when users WERE NOT converting

• Allocated budgets more efficiently by device type

20

“Always On” ≠ “Always Efficient” 3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Conversions Generated By Hour of DayQ1 2014

0

5000

10000

15000

Conversions Generated By Day of WeekQ1 2014

Users are 100% more likely

to convert on weekdays

90% of all

conversions

happen between

7am and 10pm

21

4 Consumer Intent at the KW Level

22

4

100k Calls for a Home

Security Advertiser

Not All Calls are Created Equal

23

Top 5 Mover Observations We’ve Learned From Analyzing Home

Security Phone Calls From the New Customer Line

In April, 30% of Calls

were Moving-Related

Calls From Movers Convert at

a Very High Rate (75% Likely

to Convert)

The Most Common Reason

Cited for Calling ADT was

Moving into a Neighborhood

with Crime Concerns

Very Few Callers

Live Alone

1

2

3

4

5

25% of Movers Already

Have a System Installed in

Their New Residence

Sources: Marchex Home Security client Residential Call Analysis - March-April 2014

200+ Billable Phone Call Conversations Analyzed

75%

25%

24Sources: Marchex Performance & Call DNA Data for client. Data set from January 2013 – October 2013

Hold Times Impact Performance!

0

100

200

300

400

500

600

0%

5%

10%

15%

20%

25%

30%

35%

40%

9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm 12am

Ho

ld T

ime D

ura

tio

n i

n S

eco

nd

s

Ab

an

do

n

& S

ale

s R

ate

Perc

en

tag

e

Average Hold Time Durations Abandon Rate Sales Rate

25Side by side IVR test with Marchex Home Services client. Analyzed 400 randomly sampled calls on each IVR over a side by side 2 month call comparison

Improving call center efficiencies can improve

campaign efficiencies too!

ConversationIVR

ConversationIVR

0:24 6:00

0:52 4:30

2 Steps

8 Steps

20% Increase in Converted Sales Calls

26

Marchex is a leading advertising technology company

focused on Mobile and Calls.

= CALLS

100K+Customer scale

400M+Annual call connections

30Patents granted & pending

420 / 50%Employees / % in Product &

Engineering roles

$175M+2014 Revenue estimate;

profitable and debt free

MCHXPublicly traded on Nasdaq