Mobile Phones and the Modern Traveler

January 17th, 2013

John Busby, VP Marchex Institute

www.marchex.com

2

What Happened to the Newspaper Business?

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

1950 1960 1970 1980 1990 2000 2010

Source: Newspaper Associations of America. Carpe Diem Blog.

Print Only

Newspaper Advertising Revenue Adjusted for Inflation

Millions of 2012 Dollars

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The Reason, of Course, is Time Spent Digitally

42%

22%

1%

25%

11%

43%

26%

10% 7%

15%

TV INTERNET MOBILE PRINT RADIO

Ad Spend Time Spent

≈

Sources: VSS, Mary Meeker (KPCB), comScore, Alexa: 2012

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This Trend Will Materially Impact Travel Bookings

20 million mobile bookers in 2013 & 36 million in 2016

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And Remember… This Device Makes Phone Calls

RING RING

62% of consumers call a

business from a local

search, the most over

other outcomes

1

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The Most Natural And Productive Response to a

Mobile Ad or Search in Travel is Often a Phone Call

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How Big Will The Mobile Search Market Be?

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2010 2011 212 2013 2014 2015 2016

Local searches U.S. (mobile)

Local searches U.S. (desktop)

Desktop vs. Mobile Local Search Forecast

Mill

ions

≈

81 Billion

Data from BIA/Kelsey Report, “Call-Based Ads: Eliminating the Unknown From Advertising.” May 29, 2012

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How Big Will The Mobile Calls Market Be?

Source: BIA/Kelsey (2012)

0

10000

20000

30000

40000

50000

60000

70000

2010 2011 2012 2013 2014 2015 2016

Calls generated fromdesktop search

Calls from mobile search

Internet Call Volumes by Channel

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The Study: Mobile Phones & The Modern Traveler

We selected 15,000 calls to national call centers and individual hotel properties out

of hundreds of thousands of calls from online and mobile media campaigns.

Call Scoring Call Mining

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Finding: Mobile Callers Convert

25% Car Rentals

20% Hotels

On the desktop, comScore and Google report the average travel booker

makes 12 online searches and visits 22 sites before booking.

Source:http://www.comscore.com/esl/Insights/Press_Releases/2008/01/Importance_of_Search_Engines) Makchex Data 2013

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Finding: Three Types of Mobile Callers

Technophobe Deal-Seeker Special Requestor

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Special Requestors… Why Are They Calling?

Source:Makchex Data 2013

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Finding: Short Booking Windows, Distinct Call

Patterns

Hotel Callers Are

Truly “11th Hour”

Bookers

However, for rental cars we found that mobile consumers call more often in

the morning than their desktop counterparts… and more than three-quarters

of calls were same-day rentals.

Source:Makchex Data 2013

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Finding: Not All Calls Are Created Equal

22%

Potential new

customer

53%

Existing

customers

25%

Spam &

misdials 38%

62%

Source:Makchex Data 2013

Calls with True

Purchase Intent:

Detailed Inquiries

about Booking Travel

Calls Without

Purchase Intent:

Customer Service,

Misdials, Spam

Targeting the 38% can transform advertising results.

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How Should Travel Marketers ‘Mobilize’ Call Data?

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The Call Tracking Number is Your Tracking Pixel

22%

Potential new

customer

53%

Existing

customers

25%

Spam &

misdials

1-800-GRT-DATA

In mobile, your call tracking should match the sophistication of

your online tracking.

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Fragmentation of Mobile Searches Requires

Broad Mobile Media Strategy

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An Integrated IVR Determines Intent

Sales

Thank you for calling the

Seattle Princess Inn, Seattle’s

Finest Hotel. If you are calling

about a new reservation,

please press 1. If you are

calling about an existing

reservation, please press 2.

Integrated IVR

Existing

Local Office

Directions

Your IVR must be linked to your call analytics data.

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Measure Hold Time and Establish a Minimum

Duration for a Successful Sales Call

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20 20

Talk Time IVR + Hold

Talk Time IVR + Hold

0:24 6:00

0:52 4:30

2 Steps

8 Steps

60% Conversion

50%

Conversion

Longer Hold Times Increase Abandons, Reducing

Gross Conversions From Advertising

* Marchex data, 2011

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Mining and Scoring Calls Provides the Richest

Source of Data About Your Customers

Are there two actual humans

talking to one another?

Is the conversion conducted

primarily in English?

Is a customer or a potential

customer calling about a

product or service offered by

the advertiser?

Does the conversation

concern a previous sale,

appointment, arrangement,

or relationship?

Yes

Yes

Yes

No

No

No

No

No Conversation

Non-English

Non-Product or

Service

New Business

1

2

3

Follow-Up 4

Yes

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Example: Hotel Features Associated with Purchases

Featured Correlated with Reservations for Major Hotel Chains

0

0.5

1

1.5

2

2.5

airport breakfast fitness free parking pool restaurant view wireless

Hotel Brand 1

Hotel Brand 2

Hotel Brand 3

* Marchex data, 2010

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About Marchex

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Digital Call Marketplace: Mobile Ad Network that Delivers Calls on a Pay Per Call Basis

Marchex Call Analytics: Technology Platform that Measures and Analyzes Phone Calls