Newsletter Article

October 2006

Pay-Per-Call (PPC)

D. Graham Tweedy, DGT Internet Marketing

In the internet age the telephone is still vital

By now we are all familiar with the pay-per-click ads that appear on the right column of your favorite search site when you put a word or phrase into the search box.  You survey the list of ads and click on the one you like and visit the website whose address you clicked on.

And now we have pay-per-call.

Why the telephone

Is this not the Internet Age?  We are still using the telephone?  Yes, and here a few reasons.

• Businesses that do not have a website may participate online using pay-per-call.
• Often the buying cycle begins rather anonymously, kicking the tires.  However, as decision time approaches a pay-per-call ad might just be the right message at the right moment.
• Certain items or services are needed immediately and/or by their nature require an interactive communication

How it works

Some one is searching online for a product or service that you offer in a designated geographic area.  Your pay-per-call ad appears in the search results.  A toll free number appears in the ad by which the searcher dials to reach your business.  The toll free number is provided by the ad agent, currently a company called Ingenio.  The call is then forwarded to your business phone.  You set the maximum price per call thus making the process similar to pay-per-click.

There are variations on the theme such as Click-to-Call which Google is currently testing.  Using this technology the searcher enters their phone number and Google connects to the business involved and they call the searcher.

The Status

AOL was one of the first to adopt the technology and they along with a few smaller search engines and Verizons Superpages are currently the agencies offering the technology.  Google is in beta, Yahoo! is making deals so it will not be long before the technology is main stream.

Recommendation

Should you try pay-per-call?  You might, especially if it fits your product type or your personal orientation.  You know that if you could just speak to the prospect you could close the deal.  There is no replacing the personal contact that a telephone conversation provides.

Pay-per-call conversion rates are higher than pay-per-click.  It makes sense that a person who is willing to talk to a provider of a service or item is probably more serious than someone who is simply clicking on a link to a website.

We have the feeling that once Google enters the fray pricing will drop.  Currently pay-per-call events start at around $2 whereas pay-per-click bidding may start at a few cents.  You may wish to wait.