cpa phone calls – local advertising opportunity

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?

Thank you! Carl Holmquist Founder & CEO at Freespee

Carl.Holmquist@Freespee.com+46 770 35 00 32

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