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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: AdvancedTarget audience: NetworksNiche/vertical: Pay-Per-CallCarl Holmquist, Founder, Freespee (Twitter @Freespee)
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Tapping into the European SME budgets, in display advertisingCarl Holmquist
Founder & CEO at Freespee
January 8th, 2012
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?
1.I learned that there are
certain trends
I spend more time on my smartphone than on my laptop computer, and I’m not alone…
Mobile time spend of US Smartphone Users
Jun 2010 Dec 2010 Jun 2011 On Internet On print0
20406080
100120140160180
64 70 74
155
30
4366
81
20
Mobile AppMobile Browse
Daily minutes
Source: Comscore, Flurry, Alexa, eMarketer
Online InternetPrint - NewspaperPrint - Magazine
In US, mobile spend growth is driven by both mobile search and display
Mobile ad spend forecast 2012 - 2015
2010 2011 2012 2013 2014 2015 -
1,000
2,000
3,000
4,000
5,000
633
1,767
1,600
396 Video (+69%)Display (+51%)Search (+57%)Messaging (+14%)
$USDmillion
Source: eMarketer 2011
The targeting opportunities are more advanced in Mobile Advertising
Source: Insight Express 2010, Dynamic Logic 2011
And, Mobile ads are more effective than online ads for branding and driving purchase
Mobile v.s. Online ad campaign effectiveness
Unaided Awareness Brand Favorability Purchase Intent0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2.0% 2.0% 2.0%4.3%
11.3%
3.4%
Online AdsMobile Ads
+8. 4%Best performers can reach 5X purchase results
Average
2.I learned that there is is
a problem!
Local Display Advertising that supports immediate interaction between merchants
and customers is not available
How big is the unsold inventory in mobile advertising?
Source: Smaato
17% and dropping
10% and dropping
mobile inventory is increasing at a faster pace than mobile
advertising budgets
Is it just a dream to increase mobile ads fill rate and achieve higher CPx?
Source: Read Right Mobile,Smaato, Flurry
Better fill rate supported by Hyper Local Ads with 5-20X higher CPL
Average fill rate today and very low CPM
3.I learned that there is a
solution.
In 2008,We started to power SME Call Advertising programs
By working with Directory Publishers
2008 through to 2011We develop a large SME advertiser ad inventory, but a thin demand side (distribution)
Merchants
Freespee
Online Directory Publishers
In 2011,We started to power Enterprise Call Advertising programs
By working with Affiliate Networks
Merchants
Freespee
Affiliate Publishers
May 2011 through Jan 2012We develop a large call ads demand from affiliate publishers, but a thin supply side
Merchants
Affiliate Publishers
SME Display Ad Campaignsin Affiliate Networks
We put them together
Automated distribution of Display Call Ads for 10,000 SME campaigns
100% Performance-based
The result?
Source: Dynamic Logic 2011
Well-designed Local Advertising, high CTRs but if the Ad server doesn’t support Geo targeting properly…
Fredriksberg is a neighborhood in the city of Copenhagen, Denmark
• Copenhagen
PublisherTV2 is a Danish Broadcaster with readers all over the country
Display Ad Campaign Today’s lunch offers in Fredriksberg…
A Display Call Ads
7 restaurants within a radius of 500 meter, only displayed for phones in that area
Post Click-through, 1 out of 5 visitors call
60% of the calls qualified for commission payout (CR = 60%)
How manyClicked to Call?
In total 800 restaurants distributed through 7 neighborhood templates
Source: 4 million CPA Phone Calls powered by Freespee
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 $25 per qualified call
100% Performance-based Commission
Do you have access to Hyper Local Display programs?
How it works
Target customers see Call Ads and make calls
6
Network optimizes distribution in real-time
7
Freespee tracks calls, and report commission
8
Advertiser pays qualified Call Ads
9
Marketer designs new Call Ads campaigns
10
Publisher displays Call Ads on the media
5
Affiliate network distributes Call Ads
4
Freespee activates Call Ads on Marketpla$e
3
Marketer enables Call Ads on Marketpla$e
2
Advertiser decides budget for Call Ads
1
