Pay-per-Call Picks Up Speed

WHILE NO ONE WOULD SAY growth in pay-per-call search advertising is exactly explosive, the future got a lot rosier in the past six weeks. The business model, which gives search advertisers a toll-free number and lets them pay for phone calls from prospects rather than ad clicks, was energized by a handful of developments that suggest key search players may have big plans for pay-per-call.

Some of those plans could be far off. Google’s introduction of a combined instant-messaging/IP voice chat platform is just a baby step toward a solid network that can hook up advertisers and buyers; so is Microsoft’s acquisition of Teleo, an IP voice software company that enables PC-to-phone calling. But with these two major consumer brands edging toward voice services, some industry observers believe ad revenue could be among the reasons for their interest.

Two other developments should have a more immediate effect in nudging the pay-per-call growth needle. For one thing, major Internet Yellow Pages (IYP) provider Verizon SuperPages.com announced it will support pay-per-call. And Ingenio, the pay-per-call pioneer that runs its own advertising network and provides the platform for those run by Miva (formerly FindWhat) and AOL Search, announced it will publish its software so that search engine marketing (SEM) firms can customize the application to suit their clients’ needs.

Verizon SuperPages is expected to start offering its Pay For Calls service to both local and national advertisers by the end of September. The program will give advertisers a dedicated toll-free or local telephone number (their choice) for each ad. Customer calls on those numbers will then ring through to the advertiser’s standard phone line.

As with other pay-per-call platforms, the appeal is expected to be strongest for those advertisers that do not transact business over the Internet or who in fact do not have a Web site. These often are businesses whose market is extremely local, or who feel they need personal contact with customers in order to convert to sales