2015 Click-To-Call Commerce
Mobile Performance Report
Contents
SECTION I – OVERVIEW
Mobile Consumers Click-to-Call. . . . . . . . . . . . . . . . . . . . . . . . . . . 03
SECTION II – CLICK-TO-CALL COMMERCE
The $1 Trillion Click-To-Call Economy. . . . . . . . . . . . . . . . . . . . . 04
SECTION III – PURCHASE BEHAVIOR
Click-to-Call Conversion Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
SECTION IV – WHO’S CALLING
Click-to-Call Demographics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09
SECTION V – ROBOCALLS
How Spam Impacts Click-to-Call. . . . . . . . . . . . . . . . . . . . . . . . . . 10
SECTION VI – LEAKY FUNNEL
The Challenge Of Unanswered Calls. . . . . . . . . . . . . . . . . . . . . . . 12
SECTION VII
What’s Next. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
© Marchex, Inc. All Rights Reserved. www.marchex.com
2
SECTION I — OVERVIEW
Mobile Consumers Click-to-Call
Brrnnggg. Brrnnggg.
With the advent of smartphones, phones are ringing at U.S.
businesses like never before. After years of customers Internetbrowsing their way to your website (though maybe never your
door), click-to-call has emerged as the most common form of
purchase-oriented activity from mobile ads.
A June 2015 report from BIA/Kelsey predicts that calls to
businesses from smartphones will reach 162 billion by 2019.1
Mobile advertising platforms have taken notice, with Facebook
introducing new click-to-call functionality and Google launching
“Call-Only” mobile ads in 2015. Advertisers already spend an
estimated $4 billion annually2 on click-to-call for paid search,
in addition to investing in click-to-call campaigns that occur
across hundreds of mobile publishers through products like
the Marchex Call Marketplace. New click-to-call performance
products, like those recently launched by the mobile-focused
unit inside WPP’s Xaxis 3 are a sign that there will be more
opportunities available to advertisers and we believe that
spending on click-to-call will rise dramatically as mobile
advertising platforms mature.
By 2019, BIA/Kelsey expects
162 BILLION phone calls from
mobile phones to businesses
© Marchex, Inc. All Rights Reserved. www.marchex.com
Why are calls more valuable than clicks? A call connects a
merchant with a prospect in the flesh – or nearly in the flesh.
There is no separation of miles and pages of inscrutable
content and Internet ether. The customer is right there, on
the line, asking questions. Old-fashioned salesmanship has an
opportunity to blossom. You can take the caller by the hand,
and lead them down the sales journey path to that magical
destination called The Close.
What’s more, calls made from mobile phones are exciting
because the customer is typically not tethered to a PC or laptop
at home or work. They’re very likely on the move. They could
be near your store. Or in your store! Mobile calls are goldmines,
representing prospects who are thinking about your business,
possibly within physical range of making a purchase and, most
importantly, are available for old-fashioned person-to-person
communication, persuasion and deal-closing.
What is new in this report? While marketers now know that
click-to-call is essential to mobile consumers, there has been
a lack of data available to quantify both how these phone calls
convert into revenue and some of the challenges that marketers
face in click-to-call campaigns. Data for this study comes from
24 million aggregated and anonymous phone calls analyzed
over the last 18 months by Marchex Call DNA, part of the
Marchex Call Analytics platform. Marchex Call DNA scores and
classifies phone calls automatically to provide marketers data
on consumer intent, sales and audiences.
This is real performance data that tells who is calling, how they
got to your business, why they’re calling, what percentage of
calls are valid prospects and who should be answering the
phone on your end.
3
SECTION II — CLICK-TO-CALL COMMERCE
The $1 Trillion Click-To-Call Economy
Much has been written about how often consumers click-to-call from smartphones, and how that behavior influences how consumers
research and select products and services. But little has been written about how much consumers are actually spending after they
connect with a business by phone. The answer may surprise you as click-to-call is growing more quickly and is responsible for
considerably more purchases than e-commerce.
E-commerce has grown to more than $300 Billion in consumer spending in 2014. This is a large number, but only a fraction of the
more than $11 trillion per year spent by Americans.4
So how do Americans spend the other $10.7 trillion? Once we remove housing and health care, which account for roughly 30% of
this figure, we’re left mainly with products and services that consumers purchase in-store or over-the-phone.
Which industries contribute to the click-to-call economy?
Auto insurance is one industry where most consumers that
buy a new policy do so over the phone, or start with a phone
Household Operations
Vehicle Expenses,
call. Other industries where the majority of purchases include
Including Insurance and Repair
a phone call in the path to purchase include home repair,
Vehicle Purchases
legal services, appointment-based services like dentists,
Personal Care
cable & satellite television, auto repair, and many types of
Entertainment
local businesses from carpet cleaners to spas. Certain travel
Retail Sales
0 $100B $200B $300B $400B $500B $600B 3T
purchases, like a cruise, are almost always purchased by phone.
Consumer Expenditures: Bureau of Labor Statistics 2013.
More than half of consumers use search engines as the primary
Retail Spending: Forrester 2014
vehicle to find a car, and most of these searches are mobile.
More than 75% of leads to auto dealers from mobile are phone calls! And then there are many retail purchases where a phone call is
used to verify store hours, inventory or answer a simple question.
Consumer Expenditures Significantly Influenced by Phone Calls
Percent Of Consumers Who Would Be Very Likely Or Extremely Likely To “Click-to-call”
60%
58%
46%
66%
58%
72%
Car
Bank Account
Home Goods
Home
Hotel
Professional
Google, 2014
In 2015, Americans will spend more than $1 trillion in click-to-call commerce. Consumers increasingly use mobile phones for
“business lookups”. This year, advisory firm BIA/Kelsey estimates that there will be 93 billion consumer-to-business phone calls from
smartphones, and this is expected to grow to a whopping 162 billion by 2019.1
© Marchex, Inc. All Rights Reserved. www.marchex.com
4
Mean Purchase Value Of Products Purchased By Click-To-Call
Calls Happen Around High Value, High Consideration Purchases
Auto
Highest Price Threshold – $1,195
$416
Finance
$320
Travel
$265
Tech
$170
Local
$119
Retail
$33
Restaurant
In our analysis of more than
24 million phone calls, the
Marchex Call Analytics
platform finds that the
average conversion rate
(to a sale, appointment
or reservation) is 5-25%
(see Section III). When
we take the average order
size of these purchases,
we conservatively
estimate that “click-to-call
commerce”, defined as a
phone call that ends in
an over-the-phone sale,
appointment, reservation or
Google, 2014
in-store sales is responsible for $1 trillion in consumer spending,
and will grow to nearly $2 trillion by 2019 as the majority of
business lookups will occur on a mobile phone.
93B annual calls from mobile today, growing to 162B by 2019
60
Annual Calls (billions)
“Click-to-call is literally the connection between the mobile
consumer and American businesses for billions of purchases
each year”, says Michael Boland, Chief Analyst at BIA/Kelsey.
“Across dozens of industries, more than $1 trillion in consumer
expenditures are a direct result of this consumer action.”
Calls Driven to Businesses From Smartphones, by Format
70
50
40
30
20
10
0
2014
Search
2015
2016
Traditional Display
2017
Landing Pages
2018
2019
Native Social
BIA/Kelsey 2015
Click-To-Call Commerce, United States
$2.0
$1.8
$1.94T
$1.6
$1.75T
$1.4
$1.55T
$1.2
$1.0
$0.8
$1.12T
$1.23T
$0.6
$0.4
$0.2
$0
2015
2016
2017
2018
2019
Marchex, 2015
© Marchex, Inc. All Rights Reserved. www.marchex.com
5
SECTION III — PURCHASE BEHAVIOR
Click-to-Call Conversion Rates
What type of return should a marketer expect from
click-to-call campaigns? This section is dedicated to the
marketer that is looking for industry benchmarks on clickto-call conversion rates, and answers several important
questions.
The graph below shows, for a selection of industries, the
percentage of calls that are product or service-related. You
might wonder why every phone call isn’t product-or-service
related. On average, one in four calls can be anything
from job inquiries to solicitations to business-to-business
calls… not necessarily the types of calls you want from your
marketing program.
How many of my phone calls should I expect to be product
and service calls, as opposed to calls from job-seekers,
solicitors and wrong numbers? How many of these phone
calls should I expect to convert into sales or appointments?
We’ll cover these topics here, and save the following
sections for the $64,000 question: How do I improve the
conversion of my click-to-call campaigns?
Is your industry not available below? Chances are we have
the data, so reach out to us (see Section VI) and we’ll see if
we can provide it to you. It is also important to note that this
only takes into account calls that are at least 30 seconds long.
We’ll cover the impact of robocalls and other types of short
calls in Section IV.
Percentage of Product/Service Related Calls by Industry
90%
80%
% of total calls
70%
60%
50%
74%
77%
60%
20%
75%
67%
67%
52%
40%
30%
73%
71% 69% 70%
83%
34%
10%
© Marchex, Inc. All Rights Reserved. www.marchex.com
re
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6
This next graph takes those product and service calls, and shows how many (in blue) are conversions to sales, appointments or
reservations. When compared to PC advertising, these conversion rates are colossal, typically 4x the rate of online conversions.
The non-converting customers aren’t “bad phone calls”, these are just consumers that decided not to buy today. Effective
marketers are learning how to remarket to these consumers, or using data from Marchex Call DNA to understand why these
customers are not converting.
Sale/Appointment and Product Discussion Rates for Selected Industries
Sale/Appt
Other Product Inquiries
70%
18%
60%
% of total calls
50%
20%
40%
30%
20%
38%
20%
22%
31%
15%
24%
10%
8%
14%
32%
10% 20%
36%
5%
19%
20% 25% 48%
39% 20%
29% 32% 32% 26%
20%
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See p.8 for Travel & Financial Services
Key Takeaways
Conversion rates from mobile phone calls are on average
4X higher than those from desktop PCs.
5 -25% of calls to advertisers convert into a sale,
appointment, or reservation.
Approximately three out of four calls to advertisers are
product and service-related calls.
© Marchex, Inc. All Rights Reserved. www.marchex.com
7
Spotlight
Financial Services
16%
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%.
14%
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.
10%
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.
Data set includes more than 400,000 phone calls from January-December 2014
to Marchex advertisers in the financial/insurance industries.
Travel
12%
8%
15%
Highest Observed
12%
75th Percentile
9.5%
Median
7.6%
25th Percentile
6%
6.4%
Lowest Observed
4%
2%
0%
Observed Range of Conversion Rates for
Advertisers in Insurance/Financial Services
What special services and features are callers asking for?
Consumers on desktop are in research mode. On mobile,
they’re in purchase mode.
Our data show that the conversion rate is consistently over
25% for rental cars and over 20% for hotels.
When a consumer is on the phone with an advertiser, there is
a far greater likelihood this exchange will lead to a booking.
Why are Consumers Calling?
Despite its great efficiencies, the desktop experience fails to
serve one of our most basic needs – the need to speak with
someone else. Oftentimes, that human connection is key
to closing a sale. And oftentimes, that connection is key to
generating higher-value transactions.
HOTEL
CAR
Nearby attractions
& events
Truck, mini-van
for utility
Convenient transport &
shuttle options
Airport pickup
Amenities
(meals, pool, fitness)
One way rental
Event hosting
(weddings)
Recent accident/
breakdown
Childcare
Data set includes more than 10,000 phone calls from January-December 2013 to
Marchex advertisers in the travel industries.
© Marchex, Inc. All Rights Reserved. www.marchex.com
8
SECTION IV — WHO’S CALLING
Click-to-Call Demographics
It perhaps should not be surprising that mobile callers are younger and less affluent than PC users – after all, young people are the
ones with smartphones glued to their hands at all times. But these Millennials, currently aged 21-34, are a prized demographic for
most brands, spending more than $1.3 trillion annually.
This section provides demographic data on a set of aggregated and anonymized consumers that placed more than 1 million consumer
phone calls from mobile advertisements to businesses, as measured by the Marchex Call Analytics platform and the Marchex Call
Marketplace.
Mobile callers are more likely to be young, single, and of relatively low income, which is not unusual, as they are just starting
their careers.
Age - Mobile Callers
Income - Mobile Callers
Age - Mobile Callers
Income - Mobile Callers
Under 25
Under 25
25 to 34
25 to 34
35 to 44
35 to 44
45 to 54
45 to 54
55 to 64
55 to 64
65+
65+ 0
50
100
150
0Index Value 50
100U.S. Population
150
Against Average
Less Than $25K
Less Than $25K
$25K to $50K
$25K to $50K
$50K to $75K
$50K to $75K
$75K to $100K
$75K to $100K
More Than $100K
More Than $100K
Index Value Against Average U.S. Population
Index Value Against Average U.S. Population
Home Ownership - Mobile Callers
Home Ownership - Mobile Callers
Not Home Owners
Not Home Owners
Low Rate of
HomeLow
Ownership
Rate of
Home
Ownership
Average
Rate of
Home
Ownership
Average
Rate of
Home
Ownership
Highest
Rate of
Home
Ownership
Highest
Rate of
Home Ownership 0
50
100
150
U.S. Population
0Index Value Against
50 Average100
150
Index Value Against Average U.S. Population
20
40
60
80 100 120
Value Against
20Index 40
60 Average
80 U.S.
100Population
120
Marital Status - Mobile Callers
Marital Status - Mobile Callers
Single
Single
Married
Married
50
0
100
150
0Index Value 50
100U.S. Population
150
Against Average
Index Value Against Average U.S. Population
Key Takeaway
Click-to-Call advertising is a great way to reach Millennials, who are
eager to connect directly with businesses.
© Marchex, Inc. All Rights Reserved. www.marchex.com
9
SECTION V — ROBOCALLS & MISDIALS
How Spam Impacts Click-to-Call
Click-to-call campaigns can be noisy. A common complaint
we hear from a first-time click-to-call marketer is something
along the lines of “I received a lot of short calls and spam calls,
and wasn’t able to figure out how to deal with it.” This section
is designed to quantify this challenge for marketers, and
provide some advice on how to deal with it.
When advertisers started paying for clicks more than a decade
ago, they quickly realized there were millions of clicks they
shouldn’t be paying for – from repeat customers, bots, spam
and fraud. The advertising industry has found ways to mitigate
these problems for pay-per-click campaigns.
Likewise, click-to-call campaigns suffer from some of these
problems due to the immaturity of most mobile advertising
platforms that cannot effectively measure phone calls. This
section shows, by publisher type, the percentage of calls that
are Spam & Misdials, as identified and blocked by Marchex
Clean Call.
We divide the rest of the calls, by publisher type, into two types.
New Customer Calls are calls from prospects that result in
meaningful conversations. Short, Customer Service & Repeat
Calls are the rest as identified by Marchex Call Analytics.
Effective marketers are using call analytics platforms to
measure and optimize click-to-call campaigns, or buying phone
calls from a mobile advertising network that has built-in call
analytics technology and only charges advertisers for highquality inbound phone calls. More information can be found in
Section VII.
Percentage of Callers
54%
24 Million+
Phone Calls
In
2014 - 2015
34%
12%
Total Calls
SPAM & Misdials
Short, Customer Service
& Repeat Calls
Search: Percentage of Callers
Directories: Percentage of Callers
21%
65%
61%
1 Million+
Phone Calls
From
Search
in
2014 - 2015
New Customer Calls
6 Million+
Phone Calls
From
Directories
in
2014 - 2015
25%
18%
Total Calls
SPAM & Misdials
Short, Customer Service
& Repeat Calls
© Marchex, Inc. All Rights Reserved. www.marchex.com
New Customer Calls
10%
Total Calls
SPAM & Misdials
Short, Customer Service
& Repeat Calls
New Customer Calls
10
Voice: Percentage of Callers
Display: Percentage of Callers
53%
16 Million+
Phone Calls
From
Voice
in
2014 - 2015
48%
1 Million+
Phone Calls
From
Display
in
2014 - 2015
`
34%
35%
17%
13%
Total Calls
SPAM & Misdials
Short, Customer Service
& Repeat Calls
New Customer Calls
Total Calls
SPAM & Misdials
Short, Customer Service
& Repeat Calls
New Customer Calls
Key Takeaways
Overall, 51% of calls were filtered out as spam and misdials.
The issues vary by severity across different mobile channels
By gaining visibility into call quality, advertisers can quickly
respond to spam and fraud issues to minimize loss and increase
marketing efficiency.
© Marchex, Inc. All Rights Reserved. www.marchex.com
11
SECTION VI — LEAKY FUNNEL
The Challenge Of Unanswered
Calls
1 in 5 Calls From Mobile Phones Are Abandoned
9%
In desktop digital marketing, marketers miss opportunities
when their website is down. In the world of mobile marketing,
marketers miss opportunities when calls from consumers are
not answered.
18%
Hang-ups & Abandons
Conversations
Other
73%
The new challenge in the mobile marketing world is getting the
calls through. The call center becomes the critical connection
between consumers and advertisers in the mobile marketing
world. How are advertisers doing in getting consumers through
to businesses?
Whereas the previous section explored the impact of spam and
misdials, this section addresses the challenge of consumers
that hang-up or abandon the phone call when they are placed
on hold or before a business or call center picks up.
Our data shows that, in 2015, nearly 20% of calls result in a
hang-up, usually due to hold-time or an unanswered call. This is
a huge percentage, which should motivate advertisers to focus
on the call experience.
Note: Based on Marchex Call Marketplace data. Calls were classified using Marchex
Call DNA technology
Abandon Rate for Select Industries, 2015
% of all classified calls
35%
30%
31%
25%
25%
20%
15%
10%
18%
15%
5%
0
Automotive
Real-Estate &
Multi-Family Housing
Cable & Satellite
Financial Services
Local SMB Average
Note: ForMarchex
selected Marchex
Call Analytics
callsover
over 45
in duration
with Callwith
DNACall
classifications.
Note: For selected
Call Analytics
calls
45seconds
seconds
in duration
DNA classifications.
© Marchex, Inc. All Rights Reserved. www.marchex.com
12
Callers were also more likely to hang up on a local business than a call center. This is perhaps because they have dedicated
phone-answering professionals while local business may not have dedicated or trained staff to answer phones.
Hang-Up Rates by Caller Destination Type
% of all call outcomes
25%
24%
20%
15%
10%
18%
5%
0
Call Center
Local Business
Note: Hang-up
rateCall
taken
from an (_____) clients
average of
call scoring
outcomes
distinct Marchex Call Marketplace clients. Hang-ups included, voicemail/phone-tree and hold-time/ring hang-ups.
Note: Data from
Marchex
Marketplace
using
Marchex
Callacross
DNA17Classifications.
What can marketers do about hang-ups? This first thing to do is to monitor hang-ups automatically with a call analytics
platform. Effective marketers then can build a business case around appropriate staffing, or limit click-to-call campaigns during
certain times of day or days of week. On average, appropriate staffing can improve ROI by a minimum of 10%.
Marketers can also use conversational analytics technology like Marchex Call DNA to identify problems such as hold time for
internal transfers, and the use of terms that might indicate a consumer is having trouble understanding a representative. Data
from more than 2 million calls shows that consumers use terms like “repeat” or “understand” in nearly 20% of phone calls. A
more lighthearted look at this data was profiled recently on our corporate blog, which showed how often consumers curse when
calling a specific industry.5
Key Takeaway
One in five calls from mobile phones are abandoned.
© Marchex, Inc. All Rights Reserved. www.marchex.com
13
SECTION VII
What’s Next
To get detailed data about mobile call activity in your industry, have the Marchex Institute perform mobile call research for your
company, or to have Marchex create mobile advertising campaigns for your company and analyze your campaign data, contact the
authors John Busby johnb@marchex.com or Poom Poochaiyanont ppoochaiyanont@marchex.com. Or visit us at www.marchex.com
or @marchex on Twitter to learn more.
We’d love to hear from you!
SECTION VIII
About Marchex
Marchex is a mobile advertising analytics company that
connects online behavior to real-world, offline actions. By
linking critical touchpoints in the customer journey, Marchex’s
products enable a 360-degree view of marketing effectiveness.
Brands and agencies utilize Marchex’s products to transform
business performance.
Please visit www.marchex.com, blog.marchex.com or @marchex
on Twitter (Twitter.com/Marchex), where Marchex discloses
material information from time to time about the company, its
financial information, and its business.
Marchex Call Analytics
Marchex Call DNA
Marchex Call Marketplace
Marchex Call Analytics, a real-time
mobile advertising platform that
measures sales and consumer
intent from mobile, click-to-call
campaigns.
Marchex Call DNA is the
only conversational analytics
technology that automatically
classifies, scores and visually maps
every phone automatically, even
for advertisers that do not use call
recording.
Marchex Call Marketplace is a
click-to-call advertising network
that enables advertisers to
generate high-quality phone leads
directly from mobile Web and
in-app ads across hundreds of top
publishers and apps.
Advertisers such as ADT Home
Security and T-Mobile use Call DNA
to measure and optimize click-tocall campaigns.
Advertisers such as State Farm
Insurance and Intercontinental
Hotels Group use Marchex Call
Marketplace to reach and acquire
new customers.
Advertisers such as Time Warner
Cable and agencies such as
Resolution Media use Marchex Call
Analytics to measure and grow
mobile sales.
© Marchex, Inc. All Rights Reserved. www.marchex.com
14
SECTION IX
Marchex Institute
JOHN BUSBY, Senior Vice President of Consumer Insights & Marketing
John Busby is Senior Vice President of Consumer Insights & Marketing at Marchex. Since 2010, John has run the
Marchex Institute, a consumer insights group that publishes findings on mobile advertising, call analytics and
online-to-offline commerce. The Marchex Institute also provides custom research and consulting services for
key customers on their mobile and call-ready advertising campaigns. Previously, John served as Vice President,
Product Engineering. Prior to joining Marchex in 2003, he held various product and program management roles
at InfoSpace’s consumer and wireless divisions, Go2net and IQ Chart.
John has a bachelor’s degree from Northwestern University.
POOM POOCHAIYANONT, Analytics Manager, Marchex Institute
Poom Poochaiyanont is an Analytics Manager at the Marchex Institute. He’s responsible for providing multichannel analytics consulting and strategic consumer insights to Marchex’s key clients, with the goal to help
improve ROI in their digital advertising. Prior to joining Marchex, Poom spent more than seven years working as
an independent SEO consultant to help many local businesses in Seattle improve their online visibility.
Poom is an avid runner and collects old vinyl records in his spare time.
SOPHIA ROBINSON, Analytics Manager, Marchex Institute
Sophia Robinson is an Analytics Manager at the Marchex Institute. She’s responsible for providing multichannel
analytics consulting and strategic consumer insights to Marchex’s key clients, with the goal to help improve ROI
in their digital advertising. Prior to joining Marchex, Sophia spent nine years in data visualization and analytics in
diverse fields such as astrophysics, body building and insurance.
Sophia has bachelor’s degrees in physics and mathematics from University of Washington. She also minored in
music, and is pursuing a side project composing and arranging original music.
INSTITUT E
ABOUT THE MARCHEX INSTITUTE
The Marchex Institute is a team of data scientists and
senior analysts that deliver customized reports and
insights for clients of our Call Marketplace and Call
Analytics products. These findings inform business
decisions and measurably boost ad campaign returns.
The Institute’s insights and analyses have landed
headlines in The Wall Street Journal, USA Today,
Forbes and other national media outlets.
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1. http://blog.biakelsey.com/index.php/2015/06/24/calls-to-businesses-frommobile-devices-will-reach-162-billion-by-2019/
2. http://www.marchex.com/institute/4-billion-blind-spot
3. http://www.mediapost.com/publications/article/254072/xaxis-light-reactionteams-with-marchex-for-click.html
4. Bureau of Labor Statistics
5. http://blog.marchex.com/2013/12/18/new-marchex-call-analytics-data-rankswhich-businesses-get-consumers-cursing-over-the-phone/
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