Pay-per-call advertising

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Pay-per-call (PPCall, also called cost-per-call) is an advertising model which allows companies to advertise on TV and pay for each call generated from each TV commercial aired based on a performance model and agreed upon cost per call. The Pay Per Call model allows companies to avoid expensive cash media spends for TV and radio, in favor of only paying for qualified calls.

Enterprises looking to reach certain locations, or local/regional businesses can benefit from Pay Per Call campaigns, because it allows customers to talk with the seller before buying a product or service. Vendors of pay-per-call advertising attribute the growth of the model to the popularity of smartphones [1] and claim that it reduces the costs of on-line click fraud. [2]

Pay-per-call advertising is not to be confused with premium-rate telephone numbers. [3] Pay-per-call is the inverse of a premium telephone number, in that the advertiser who receives the call, not the caller, is charged for the service. Since it is cost per lead advertising, the rates are higher than for toll-free telephone number service. In general, the advertiser is only billed for calls that last at least one minute.

The duration of interactions (since callers spend more time interacting with the business on the phone than looking at their website) and the probability of fraud through calls is significantly reduced are factors that might increase Pay Per Call pricing, but also increases its effectiveness.

Description

Merchants define their relevant key terms, choose desired categories and a geographic area for the ad to appear (local, regional or national). From there, they create their ad, containing their company name, address, a short description and a trackable toll-free telephone number of the PPCall provider, which redirects to the advertiser's actual phone number. [4] This type of advertisement is popular with Yellow Pages companies.

Call-tracking software allows pay-per-call advertising providers to account for results. It is used to track, record, forward and account for every call. Calls can be automatically forwarded to the advertiser or sent to a call center where potential prospects are qualified before being passed along to advertisers. [5] Average call durations are between 2 and 4 minutes. [6]

Pay-per-call providers have higher rates than online pay-per-click providers, citing higher consumer intent to purchase and a higher conversion rate. Providers also report that captured call-data is more detailed and actionable than click-related data. PPCall extends beyond online advertising; it can be used in print, TV and outdoor advertising. It is available to businesses that do not have a website, because it routes prospective customers to a telephone number. [7]

This allows business from all sizes to deliver highly targeted Pay Per Call campaigns that bring them qualified leads from online and offline sources.

PPCall has been boosted by click-to-call features on smartphones, which permit a user to call a number by tapping a link, without having to dial the number manually. Apple's Mac OS X Yosemite allows the same functionality on a desktop computer. [8] Affiliate marketing networks have introduced PPCall in the UK.

Related Research Articles

Caller identification is a telephone service, available in analog and digital telephone systems, including voice over IP (VoIP), that transmits a caller's telephone number to the called party's telephone equipment when the call is being set up. The caller ID service may include the transmission of a name associated with the calling telephone number, in a service called Calling Name Presentation (CNAM). The service was first defined in 1993 in International Telecommunication Union – Telecommunication Standardization Sector (ITU-T) Recommendation Q.731.3.

Premium-rate telephone numbers are telephone numbers that charge callers higher price rates for select services, including information and entertainment. A portion of the call fees is paid to the service provider, allowing premium calls to be an additional source of revenue for businesses. Tech support, psychic hotlines, and adult chat lines are among the most popular kinds of premium-rate phone services. Other services include directory enquiries, weather forecasts, competitions and ratings televoting. Some businesses, e.g. low-cost airlines, and diplomatic missions, such as the US Embassy in London or the UK Embassy in Washington, have also used premium-rate phone numbers for calls from the general public.

A toll-free telephone number or freephone number is a telephone number that is billed for all arriving calls. For the calling party, a call to a toll-free number from a landline is free of charge. A toll-free number is identified by a dialing prefix similar to an area code. The specific service access varies by country.

<span class="mw-page-title-main">Conference call</span> Telephone call with several participants

A conference call is a telephone call in which someone talks to several people at the same time. The conference call may be designed to allow the called party to participate during the call or set up so that the called party merely listens into the call and cannot speak.

In telecommunications, directory assistance or directory inquiries is a phone service used to find out a specific telephone number and/or address of a residence, business, or government entity.

Phone fraud, or more generally communications fraud, is the use of telecommunications products or services with the intention of illegally acquiring money from, or failing to pay, a telecommunication company or its customers.

Affiliate marketing is a marketing arrangement in which affiliates receive a commission for each visit, signup or sale they generate for a merchant. This arrangement allows businesses to outsource part of the sales process. It is a form of performance-based marketing where the commission acts as an incentive for the affiliate; this commission is usually a percentage of the price of the product being sold, but can also be a flat rate per referral.

<span class="mw-page-title-main">Telephone numbers in the United Kingdom</span>

In the United Kingdom, telephone numbers are administered by the Office of Communications (Ofcom). For this purpose, Ofcom established a telephone numbering plan, known as the National Telephone Numbering Plan, which is the system for assigning telephone numbers to subscriber stations.

Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked.

In telecommunications, a long-distance call (U.S.) or trunk call is a telephone call made to a location outside a defined local calling area. Long-distance calls are typically charged a higher billing rate than local calls. The term is not necessarily synonymous with placing calls to another telephone area code.

Cost per action (CPA), also sometimes misconstrued in marketing environments as cost per acquisition, is an online advertising measurement and pricing model referring to a specified action, for example, a sale, click, or form submit.

<span class="mw-page-title-main">Prepayment for service</span>

Prepaid refers to services paid for in advance. Examples include postage stamps, attorneys, tolls, public transit cards like the Greater London Oyster card, pay as you go cell phones, and stored-value cards such as gift cards and preloaded credit cards.

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Phonewords are mnemonic phrases represented as alphanumeric equivalents of a telephone number. In many countries, the digits on the telephone keypad also have letters assigned. By replacing the digits of a telephone number with the corresponding letters, it is sometimes possible to form a whole or partial word, an acronym, abbreviation, or some other alphanumeric combination.

<span class="mw-page-title-main">Phone sex</span> Telephone conversation describing sex activities

Phone sex is a conversation between two or more people by means of the telephone which is sexually explicit and is intended to provoke sexual arousal in one or more participants. As a practice between individuals temporarily separated, it is as old as dial telephones, on which no operator could eavesdrop. In the later 20th century businesses emerged offering, for a fee, sexual conversations with a phone sex worker.

A non-geographic number is a type of telephone number that is not linked to any specific locality. Such numbers are an alternative to the traditional 'landline' numbers that are assigned geographically using a system of location-specific area codes. Non-geographic numbers are used for various reasons, from providing flexible routing of incoming phone calls to generating revenue for paid-for services.

Pay-per-sale or PPS is an online advertisement pricing system where the publisher or website owner is paid on the basis of the number of sales that are directly generated by an advertisement. It is a variant of the CPA model, where the advertiser pays the publisher and/or website owner in proportion to the number of actions committed by the readers or visitors to the website.


Performance-based advertising, also known as pay for performance advertising, is a form of advertising in which the purchaser pays only when there are measurable results. Performance-based advertising is becoming more common with the spread of electronic media, notably the Internet, where it is possible to measure user actions resulting from advertisement. Performance marketing is different from Brand Marketing which focuses on awareness, consideration and opinions among target consumers.

Toll-free telephone numbers in the North American Numbering Plan have the area code prefix 800, 833, 844, 855, 866, 877, and 888. Additionally, area codes 822, 880 through 887, and 889 are reserved for toll-free use in the future. 811 is excluded because it is a special dialing code in the group NXX for various other purposes.

Call tracking software records information about incoming telephone calls, and in some regions even the conversation. Call tracking is a technology which can enable the pay per call, pay per minute or pay per lead business model, allowing the tracking of phone calls to be associated with performance-based advertising such as Google AdWords, SEO Services, Display and Electronic Direct Marketing, and supplying additional analytic information about the phone calls themselves. Call tracking is a method of performance review for advertising and/or staff. It is based on the technological possibility of measuring the behavior of callers and is thus the equivalent in telephony to the conversion tracking used on the internet. Via different channels, both procedures offer the opportunity of clearly assigning a customer response to a specific advertising medium.

<span class="mw-page-title-main">Hospedia</span> Hospital bedside service

Hospedia Ltd is a provider of bedside communication and entertainment units in UK hospitals which also sells clinical workflow solutions for NHS Trusts.

References

  1. "Pay-Per-Call growth attributed to mobile". MediaPost 12 April 2012.
  2. ”Click Fraud Will 'Compel' Pay-Per-Call Adoption", Media Post Publications, June, 2005.
  3. "Guide to 900 Pay-Per-Call and Other Information Services". Federal Communications Commission.
  4. ”How Pay per Call Works", Search Engine Watch, February, 2005.
  5. "Understanding Pay Per Call Marketing" Affiliate X Files October 2009
  6. "Pay-Per-Call and Call Duration". Search Engine Watch, 12 April 2012.
  7. "Businesses With No Website Statistics". Statistics Brain, 5 September 2012.
  8. "http://mashable.com/2014/06/02/apple-mac-os-x-10-10-yosemite/"