Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MARCHEX INC | d8k.htm |
| EX-99.1 - PRESS RELEASE - MARCHEX INC | dex991.htm |
 April
11,
2011
Today’s businesses want to reconnect with their
customers over the phone
The Next Shift In The Digital Advertising Market:
Call Advertising
Exhibit 99.2 |
 Safe
Harbor Statement This presentation may contain forward-looking statements. These
statements are based on current expectations and assumptions which are subject to substantial
risks and uncertainties. There are a number of important factors that could cause actual
results or events to differ materially from those indicated by such forward-looking
statements as described in the “Risk Factors” section of our most recent periodic
report filed with the Securities and Exchange Commission. All of the information provided in
this presentation is as of today’s date and we undertake no duty to update the information
provided herein. |
 Local
Advertising
•
The 2011 U.S. advertising
market is $179 billion.
•
Marchex believes that 25% of all
U.S. advertising is explicitly
targeted to generate phone calls.
•
Marchex believes that a portion
of these offline media dollars will
shift to digitally-driven calls.
Source:
January
2011
Barclays
Capital
Internet
Data
Book,
Magna
Global,
Interactive
Advertising
Bureau
(IAB)
Demand for Phone Calls Means New Market Opportunity
$179 Billion U.S. Advertising Market
Marchex believes $45 billion of offline
media is used to explicitly generate calls:
•Directories -
$7 billion
•Radio -
$15 billion
•Newspapers -
$23 billion |
 •
It is expected that smart
phones will represent 30% of
all mobile phones in 2011, up
from zero just a few years
ago*.
•
By 2020, 10 billion mobile
devices are expected to be in
the market, a staggering 10
times the number of PCs
today*.
•
The explosion of smart devices
has caused consumers to shift
usage from offline directories to
digital media channels, such as
mobile and VOIP-based
sources.
•
The result is a new advertising
opportunity --
Call Advertising -
-
that has the potential to
connect hundreds of millions of
consumers directly to
businesses through digitally-
driven phone calls.
Technology Innovations Change Consumer Behavior
Technology Innovations Change Consumer Behavior
*Source: JP Morgan
Call Advertising Growth Driven by Shift From Offline to Emerging
Digital Media Channels, Including Mobile and VOIP |
 •
Phone calls are at the end of the
sales funnel –
and the end of
the customer purchase decision
process.
•
Call advertising means: (1)
potential customers have self-
selected to speak with an
advertiser, (2) a direct call
between customers and
advertisers has a higher
likelihood to convert to a sale
because of the personal
connection.
•
Economic circumstances mean
Return on Investment (ROI) is
more important than ever and
advertisers are demanding new
performance-based advertising
solutions.
•
Marchex
is best positioned to
benefit from market changes
and advertiser demand with its
Call Advertising Network, which
generates conversions that often
range from 20% to 30%+.
Business
Model
Estimated
Rate Range
Estimated
Conversion
Subscription
or Cost-per-
Thousand
Views
(CPM)
CPM
Cost-per-
Click
(CPC)
Pay-For-
Call
(PFC)
+ $2,500
$0.50 to
$10.00
$0.10 to
$20.00
Marchex:
Up to
$60.00
< 1%
1% to 3%
Marchex:
20% to
30%+
< 1%
The Advertising Funnel
Source:
Marchex
internal
Why Are Phone Calls Driving Good Results? |
 Calls are changing the
game; they convert up
to 10x better than
clicks*
•Highly effective mobile
advertising solution
•Targeted way to reach a ready-
to-buy audience
•Creates a personal connection
between customers and
advertisers
•Only pay for qualified calls
•Easier to measure the outcome
(conversion)
•Analytics designed especially
for the phone call
*Source: Kelsey Study 2011
Call
Advertising
–
The
Call
Is
The
Next
Evolution
Of
The
Click |
 •
Marchex has built its business around Call Advertising:
Both large and small advertisers gain access to digital media across the Marchex
Call Advertising Network from exclusive and preferred relationships with
more than one hundred channel partners including: four of the top five U.S.
mobile carriers, the leading global VOIP provider (Skype), mobile network
operators, and mobile application and directory providers. A growing
Call Advertising Network which already has an annualized reach of more than
500 million phone calls across digital media, including mobile.
Robust call analytics to track and measure the success of call advertising
campaigns. Executing
on
a
strategic
approach
to
offer
an
open
platform
that
uses
all
digital
media
platforms as the market shifts and supports all partner types.
Marchex is Ready to Lead |