Integrated Marketing Community

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1 Integrated Marketing Community Mobile and the Phone Channel as Part of Integrated Marketing: New Research on Insurance Chen Zhao Director of Analytics, Marchex Mike Boland Chief Analyst, BIA Kelsey We will be starting at the top of the hour. You will not hear anything until we start.

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3 PHONE CALLS: THE NEW CLICK OF THE SMARTPHONE ERA Mike Boland Chief Analyst & VP, Content BIA/Kelsey

6 Call Monetization: It Takes Many Forms Pay-per-call (like clicks but different) Call Tracking & Analytics Call Routing Call Center Software (i.e. IVR systems, virtualization, etc.). This all happens on two levels: Marketing and Sales & Support (more on that in a bit). Call monetization users can span several business verticals and sizes from enterprise to SMB

7 Call Monetization: A Universal Need Enterprise» Large brands» Multi-location businesses (need to drive calls and foot traffic to the correct local outlets)» Services with large call centers Sales Support SMB» Small businesses (the S ) Can use call tracking & analytics in basic ways to optimize finite ad budget and time they have to spend on the phone (i.e. lawyer).» Medium businesses (the M ) Use call tracking in more sophisticated ways to track & analyze campaign effectiveness (i.e. car dealership)

8 Quick Example: Google Pay-Per-Call

9 Not Just Google All the Places a Phone Number Can Show Up.

11 Mobile Search: The Leading Indicator for Call Monetization U.S. Smartphone penetration = 72% 28% of search query volume is on smartphones Search is the leading category of mobile advertising

12 Mobile Advertising Share by Format Native/ Social 12.8% Video 7.5% SMS 2.6% 2015 Display 26.1% Native/ Social 24.2% 2019 Display 21.9% Search 51.1% Video 6.0% SMS 1.5% Search 46.5%

13 Why Does That Matter? Mobile Search = Calls to Businesses Source: Google

14 The Result: an Explosion of Phone Calls to Businesses from Mobile Search

15 And High-Value Calls at That Source: Google

17 The Other Side of the Coin: Businesses Want Calls 64.4% Good Excellent 60% 52.5% 34.3% 45.4% 40% 27.1% 17.6% 36.8% 12.5% 20% 30.1% 25.4% 27.8% 24.3% 19.3% 7.6% 0% 11.7% Source: BIA/Kelsey Local Commerce Monitor (LCM) Wave 18,.

18 And in High-Value Verticals 100% 80% 60% 40% Excellent Good Fair 19.5% 21.0% 9.3% 14.4% 11.6% 24.3% 27.0% 7.8% 35.9% 27.9% 24.4% 36.7% 31.6% 31.7% 20% 43.5% 34.6% 38.2% 38.9% 26.2% 23.8% 22.2% 0% Source: BIA/Kelsey Local Commerce Monitor (LCM) Wave 18

19 Calls Happen Around High Value, High Consideration Purchases Source: Google Source: Google

20 Not All Phone Calls are Created Equal Only 19% of inbound calls are considered high quality by businesses Takeaway: Businesses will need call analytics & optimization platforms to manage these calls.

21 Example: Weeding out the good calls from the bad - Call Tracking & Analytics

23 This all happens on two levels Marketing Driving call - based leads Tracking ROI Iterating campaigns using call data Service & Support Call Center Management Rep/CSR Training Call Routing (send the best leads to the hottest reps) 2014 BIA/Kelsey. All Rights Reserved.

24 Why is this Important? Trend #1 Marketing is Becoming more Empowered and Independent Marketing is now a fundamental driver of IT purchasing, and that trend shows no signs of stopping or even slowing down any time soon. In fact, Gartner analyst Laura McLellan recently predicted that by 2017, CMOs will spend more on IT than their counterpart CIOs. --Forbes 2014 BIA/Kelsey. All Rights Reserved. 24

25 Why is this Important? Trend # 2 Cloud/Saas Products are Enabling this Shift. Saas products delivered in the cloud will empower marketers to have more purchasing power and not go through the red tape of the IT department. It also democratizes previously-unavailable capacity to small businesses, given a low barrier subscription service that can scale up and down as needed as opposed to capital requirements for on site technologies, servers, etc. -- Mike Boland, BIA/Kelsey BIA/Kelsey. All Rights Reserved. 25

27 PHONE CALLS: THE NEW CLICK OF THE SMARTPHONE ERA Chen Zhao Director of Analytics Marchex

28 In February, we released a study on the financial services and insurance industries.

29 The Mobile Audience Who s Calling Insurance Providers and Financial Services? AGE Our data shows that advertising is an especially effective way to connect to Millennials for both insurance and financial services companies. For insurance, calls index very highly towards Millennials, and also index highly for Generation X. Mobile Audience for Insurance Industry Mobile Audience for Financial Services Less Than to to to to Less Than to to to to Index Value Against Average U.S. Population (100) Index Value Against Average U.S. Population (100) Data set includes more than 450,000 phone calls from January July 2014 to Marchex advertisers in the financial/insurance industries. Data modeled with Neustar demographic profiles.

30 The Mobile Audience Who s Calling Insurance Providers and Financial Services? INCOME Insurance companies tend to reach low and middle-income consumers from mobile advertisements. This is not surprising, as many young people are still in the early stages of their careers. Meanwhile, financial services companies are attracting consumers through mobile advertising who are both younger than general population and more affluent. Mobile Audience for Insurance Industry Mobile Audience for Financial Services Less Than $25K $25K to $50K $50K to $75K $75K - $100K More Than $100K Less Than $25K $25K to $50K $50K to $75K $75K - $100K More Than $100K Index Value Against Average U.S. Population (100) Index Value Against Average U.S. Population (100) Data set includes more than 450,000 phone calls from January July 2014 to Marchex advertisers in the financial/insurance industries. Data modeled with Neustar demographic profiles.

31 The Mobile Audience Who s Calling Insurance Providers and Financial Services? CHILDREN Our research finds that a consumer makes major purchase decisions after a life change, such as marriage or change in jobs. Calls to insurance companies and financial services companies tend to be from consumers with young children, when compared to general population. Low presence of children denotes demographic segments that are unlikely to have children and highest presence denotes demographic segments that are very likely to have children. Mobile Audience for Insurance Industry Mobile Audience for Financial Services No Children No Children Low Presence Low Presence Likely Presence Likely Presence Highest Presence Highest Presence Index Value Against Average U.S. Population (100) Index Value Against Average U.S. Population (100) Data set includes more than 450,000 phone calls from January July 2014 to Marchex advertisers in the financial/insurance industries. Data modeled with Neustar demographic profiles.

32 The Mobile Audience Who s Calling Insurance Providers and Financial Services? MOBILE DEVICES Which devices do mobile consumers use when clicking on an ad for an insurance or financial services company from a mobile search? The Apple iphone is far and away the most popular device in 2014, with a diverse group of Android devices making up the rest of the traffic. Data set includes more than 200,000 user sessions from search campaigns during January September 2014 to Marchex advertisers in the financial/insurance industries.

33 The Mobile Audience Who s Calling Insurance Providers and Financial Services? 07:43 05:36 SPANISH-SPEAKING CONSUMERS Majority of conversations between Spanishspeaking consumers and agents tend to last longer than conversations between English speakers, which indicate very strong purchase intent. The median duration of sales calls to Spanish extension was nearly eight minutes, two minutes longer than the same type of calls from English-speaking consumers. Spanish Extension English Extension Data set includes more than 450,000 phone calls from January December 2014 to Marchex advertisers in the financial/insurance industries. with more than 10,000 Spanish phone calls analyzed.

34 Mobile Performance & Click-To-Call THE TYPES OF PHONE CALLS FROM MOBILE ADVERTISEMENTS Of the 1 million phone calls in our data set (driven by Search, Directories, Display and Voice Search), more than 31% of phone calls were from potential customers with purchase intent. Compared to clicks, phone calls have much higher purchase intent from mobile devices. Search Directories Display Voice Data set includes more than 1,000,000 phone calls from January July 2014 to Marchex advertisers in the financial/insurance industries.

35 The Mobile Audience Who s Calling Insurance Providers and Financial Services? BENCHMARK CONVERSION RATES FOR MULT- ICHANNEL MOBILE ADVERTISING CAMPAIGNS Benchmark conversion rates for mobile advertising campaigns take into account phone calls from prospects (callers that selected a new customer prompt on a phone tree or IVR). The conversion rate is defined as the percentage of callers that become policy holders or open a new account. For financial services and insurance campaigns, the median conversion rate is 9.5%. Top performing campaigns can reach 15% and some campaigns convert at just 6.4%. It is important to note that this data is from comprehensive, multi-channel mobile campaigns. Individual campaign flights or test campaigns may have conversion rates outside of these ranges. Data set includes more than 400,000 phone calls from January December 2014 to Marchex advertisers in the financial/insurance industries.

36 Understanding The Call Experience IVRS HOLD TIMES IVR stands for Interactive Voice Response, and refers to the set of choices a consumer receives when calling a national call center. The most common set of choices is some variation of Press 1 if you are a current customer, press 2 if you are interested in becoming a new customer For mobile marketers who leverage click-to-call, hold times are a major problem as they cause consumer hangups and reduce conversion rates. 25% of calls to national call centers for insurance companies ended up in a hang-up with an average hold time of 1:39. 20% of calls to local agents ended up in a hang-up with an average hold time of 2:06. On average, for mobile campaigns with customer acquisition in mind, 56% of phone calls where a meaningful conversation occurred are new customer calls and 44% are existing customer calls. Data set includes more than 400,000 phone calls from January December 2014 to Marchex advertisers in the financial/insurance industries.

37 Key Takeaways from Our Study Read More at

38 THANK YOU QUESTIONS OR COMMENTS? Chen Zhao Director of Analytics, Marchex P: E: