 Call-Based Ads: Eliminating the Unknown From Advertising
Matt Booth, 5/29/2012
EXECUTIVE SUMMARY:
Small-business advertisers consistently report that a phone call, even more than a personal visit to their store, is the most valuable type of new business lead. Yet many of these same businesses are confused by the dizzying array of advertising options and just as unclear about the return they get on their advertising spend as they were 100 years ago. Pay per call and its variants have long been available to break through the confusion and offer a clear-cut measure of performance. Yet PPC has always been hampered by a series of flaws and limitations, the greatest one being the inability to effectively distinguish a good call from a bad one. Unlike with clicks, the incremental cost of fielding a low-quality call is significant. Time spent talking to a job seeker is time taken away from speaking with a prospect. Another flaw in the pay-per-click model, for many, was the inability to deliver enough quality calls to support a pay-per-call business model. BIA/Kelsey believes the pay-per-call market (which includes all forms of advertising that use call-based lead tracking) is poised for explosive growth for a few key reasons. One driver is the emergence of call analytics, which is raising the art of determining lead quality to a science. Another is the explosive growth in mobile, which will unleash a dramatic increase in call-based advertising inventory. In this Advisory, BIA/Kelsey provides some historical context for pay per call, lays the foundation for why pay per call is poised for major growth, and provides a forecast of key elements of the market. This report features two appendixes: a list of charts, graphs and images (page 41) and a “who’s who” of the pay-per-call/call tracking space (page 42).
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