Pay-Per-Call: A Viable Lead

  |  June 23, 2005   |  Comments

Estimates from The Kelsey Group say pay-per-call will reach generate gross revenues of between $1.4 and $4 billion by 2009.

Pay-per-call advertising presents an alternative to PPC models; the platform offers better ability to track conversions. A new The Kelsey Group report, "Calls, Clicks & SMEs: Driving Leads from Web to Phone" discusses the pay-per-call model.

The report estimates pay-per-call will generate gross revenues of between $1.4 and $4 billion. The projection is contingent on several market variables.

Pay-per-call ability to track results makes it a cost-per-lead model. PPC ability to identify results is lower as it offers no direct communication from the consumer to the advertiser.

Pay-per-call pricing is a point of contention. Both flat-fee and auction-modeled costs have been structured, with proponents on both sides. "We don't know exactly how the pricing will play out. There will probably be multiple models, flat-rates, and auction," Greg Sterling, program director for The Kelsey Group told ClickZ News.

A third option is the tracking model. Not exactly pay-per-click, this model uses an analytics package to report on how many calls were generated from an online ad.

Pay-per-call has long existed in direct marketing and other channels. It was introduced to the Web by FindWhat.com (now MIVA) and Ingenio last September. The platform is a natural one for Small- and medium-sized businesses (SMEs). "The phone is well suited to small business," Said Sterling. "Small businesses are used to dealing with customers over the phone. Consumers are also used to picking up the phone."

Customer Contact and Call Rates After Lookup
Print Yellow Pages Internet Yellow Pages Local Commercial Searches
Metric References References
(lookups)
Geotargeted commercial searches
Source Yellow Pages Association Yellow Pages Association Kelsey Group Forecast; Ingenio data
Customer contact (%) 83% 67% 32%
Customer call (%) 61% 73% 25%
Net call rate, 2005 (%) 50% 49% 8%
Source: The Kelsey Group, 2005

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

ABOUT THE AUTHOR

Enid Burns

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Stats delivers stats headlines to your inbox twice a week. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

    Information currently unavailable

Jobs

    • Digital Marketing Associate
      Digital Marketing Associate (Connections Media) - Washington, DCConnections Media, LLC, a Washington, DC-based digital agency providing strategy...
    • Lead Generation Specialist
      Lead Generation Specialist (The Oxford Club) - BaltimoreThe Oxford Club is seeking a talented writer/marketer to join our growing email lead-generation...
    • Health Marketing Editor
      Health Marketing Editor (Agora Inc.) - BaltimoreCome flex your intellectual muscle as part of Agora, Inc’s (http://agora-inc.com/) legal team...