Microsoft Buy Opens Pay-Per-Call Possibilities

  |  September 1, 2005   |  Comments

The acquisition of Teleo could enable MSN to offer the pricing model to local advertisers.

With the acquisition of VoIP start-up Teleo on Wednesday, Microsoft has gained click-to-call dialing capabilities. The purchase raises the question of whether MSN's adCenter will offer pay-per-call pricing.

Pay-per-call advertising, which has been implemented by players like Verizon SuperPages and America Online, is thought to be especially appealing to small business advertisers. These players may lack a Web site or be unable to assign value to a click, whereas a call represents a valuable lead.

MSN wouldn't say whether it planned to add pay-per-call to its upcoming ad platform, but said it was one possible feature it could enable for its customers.

JupiterResearch analyst Gary Stein said a pay-per-call capability is one thing Microsoft gets from Teleo that it doesn't already possess.

"That seems like the most interesting thing they got that they don't already have," he said. "I would imagine they would want to include that in the adCenter. Pay-per-click isn't that attractive for local advertisers."

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ABOUT THE AUTHOR

Pamela Parker

Pamela Parker is a former managing editor of ClickZ News, Features, and Experts. She's been covering interactive advertising and marketing since the boom days of 1999, chronicling the dot-com crash and the subsequent rise of the medium. Before working at ClickZ, Parker was associate editor at @NY, a pioneering Web site and e-mail newsletter covering New York new media start-ups. Parker received a master's degree in journalism, with a concentration in new media, from Columbia University's Graduate School of Journalism.

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