2 Million Milestone

Yesterday was a big day for us and our partners. Leading Ad networks in Europe, powered by the Freespee Pay-Per-Call platform, had in co-operation with their publishers generated 2 million phone leads to their advertisers.
In some cases the calls were generated in 100% Pay-Per-Call driven campaigns, but in most cases the Calls were a complement to an existing Online CPA/CPL model, in order to monetize 100% of the traffic and eliminate the revenue leakage. The CPL value of a call starts at 3 EUR and can go as high as 100 EUR in some businesses, as real estate, car test drives etc.
In travel, up to 80% of the consumers prefer to close the deal by phone. If an Online Ad network does not add Pay-Per-Call to their CPA/CPL business model, they leak 80% of their revenue in worst case.

Freespee attending ICMA in Vienna

This spring, we attended the ICMA conference in Berlin. Since then, we have added several classified search services to our list of customer. They all use the Freespee call tracking and Pay-Per-Call platform for the same purpose, to prove and fully monetize their Ad inventory.
This time, ICMA is in Vienna, and Freespee is there. The typical B2C classified service use the Freespee API to embed our services. In the picture below, you see an example where a local phone number and SMS notification services are ordered and provisioned in real time using the API.

If you find this interesting, go to Vienna and look for Juhani, he will introduce you to how easy it is to start count calls.

Pay Per Lead (PPC) in the UK

After a 3 hours meeting with one of the most successful search engines for real estate in the UK, I realize that UK is the European answer to US in terms of performance based marketing.
The performance based business model is not just a word everyone is talking about, it is also implemented in daily business transactions. In addition, the UK market has already tried advertising setups with no phone numbers, hence 100% focus in driving traffic from the Advert to the advertiser web site or on online form for requesting a proposal. The reason behind this setup has been the inability to trace phone calls.
What happened?
Consumers didn’t appreciate it. Our statistics  show that up to 50% of the visitors of a vertical search engine service wants to contact the advertiser for a voice conversation. All efforts to make this complicated, drives down the value of the service.
Ironically, the average sales conversion rate for an inbound call is 60-70% in most industries. Average sales conversion rate for a click through is 1-2% in most industries. Hence, the value of the call is up to 30 times higher than the value of a click.
In UK, online business has understood this and are now looking for the best tech companies that can help them monetize on generated voice contact leads.
For this reason they contacted Freespee. With traditional display numbers, there is no business case in tracing traffic for an Advert with less than 5-10 calls per month. The Freespee number algorithms enable our customers to trace phone calls for all Adverts, even those with 1 call per year.

Local business wants calls, not clicks

What is an inbound call from a prospect worth in terms of money for a Mover? A first page listing in a local search engine for one keyword is priced in the area of €5 000 for a yearly subscription. How many new customers would you like to receive for that market spending? Moving all your stuff from one house to another normally costs you about €1500 inc VAT. If the gross margin is 50%, a new customer is worth €750. Is 20 new customers enough, generating gross revenue of €15 000? Three times the market spending.
A regular broadcast Ad in a local morning paper would cost you the same. What do you get for that? Branding?
Let’s say this Mover has a bad answering ratio, and he is not that service minded either. He closes 5 out of 10 inbound calls. Hence, he would need 40 (20*10/5) calls in total to be happy about the spending in local search advertising.
If I say that a first page listing in a small Swedish town for the keyword “Mover” generates 10 times as many calls during a year, would you believe me? Hence, for those who only believe in Adwords, you don’t know your figures!

Quote from the EADP conference

Recap from the EADP conference we just attended:
“So how do we move from a process based industry to a knowledge based industry?”
Jim Easton, AMR Research: “Measure everything, track everything!”
When the first release of Freespee came some 14 months ago, we learnt from our users that once you track everything, there is no point of return. It is like loosing your eyes.