Growth in Call-Based Advertising Spawns ‘Purchase Intercept Market’ for Redirecting Valued Telephone Leads to Businesses
BIA/Kelsey identifies and defines the U.S. ‘purchase intercept market,’ which it expects will be worth $4.9 billion in 2016
CHANTILLY, Va. (June 27, 2012) – Explosive growth in call-based
advertising, driven in part by mobile proliferation, will lead to major
advances in call analytics and call quality, according to a new report
by BIA/Kelsey titled, “Call-Based Ads: Eliminating the Unknown
From Advertising.” In the report, BIA/Kelsey analyzes the issue
of call quality, which the firm anticipates will lead to category-level
targeting for redirecting telephone leads to businesses.
“We universally hear from call-based businesses that while
call volume is growing, getting enough high-quality calls to businesses
is the single largest challenge,” said Matt Booth, chief strategy
officer and program director, Interactive Local Media, BIA/Kelsey. “The
massive influx of calls combined with a high percentage of unwanted
calls, opens up a new and critical business segment around call analytics
and call quality.”
BIA/Kelsey recently reported that in 2011 the average U.S.-based
business received 10.9 calls per month from desktop search (and all
downstream properties through SEO) and 34.7 calls per month from mobile
(including mobile search). In 2013 the average U.S.-based business
will receive 13.8 calls per month as a result of desktop search and
80.9 calls from mobile.
“Like BIA/Kelsey we expect mobile call volumes to increase significantly,
but the key will be optimizing programs for quality calls,” said
Bill Dinan, president of call measurement company Telmetrics. “Businesses
are already using mobile call-based ads to capitalize on consumers’ expanding
mobile usage. From Q1 2011 to Q1 2012, we saw an increase of more than
30 times the number of mobile pay-per-call ads on our network.”
Defining the ‘Purchase Intercept Market’
According to the report, locating call sources across mobile, local,
apps, voice, search, etc., and then using category-level targeting
to redirect interest to a new business is a complex, yet worthwhile,
undertaking. BIA/Kelsey calls this the “purchase intercept market,” because
these consumers are far down the purchase funnel, making these calls
highly valued.
By 2016 BIA/Kelsey estimates close to 4 billion calls will be intercepted
and redirected to businesses that want these leads. The purchase intercept
market call volume will grow at a 52.1 percent CAGR from a base of
144 million calls in 2010 to 3.78 billion by 2016. BIA/Kelsey expects
the combination of mobile and ad targeting to cause the U.S. purchase
intercept market to be worth $4.9 billion by 2016.
The BIA/Kelsey Advisory, “Call-Based Ads: Eliminating the Unknown
From Advertising,” is available exclusively to clients of the
firm’s Interactive Local Media (ILM) advisory service. The 48-page
report includes 32 charts and figures and profiles of nine key players
in the pay-per-call/call-tracking arena: CallSource, Felix, Freespee,
LogMyCalls (a service of ContactPoint), Marchex, Mongoose Metrics,
RingRevenue, Soleo and Telmetrics. For information on obtaining access
to the report by becoming a client of BIA/Kelsey’s ILM advisory
service, visit http://www.biakelsey.com/ILM, or contact Steve Passwaiter
at (703) 802-2973 or spasswaiter@biakelsey.com.
Call-based advertising will be one of the topics discussed during a panel
on mobile monetization at today’s Mobile
Local Media San Francisco conference.
Details about the agenda, speakers and online registration are available at
www.biakelsey.com/mlmsf.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through consulting and
valuation services, research, Continuous Advisory Services and conferences.
Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising,
telecommunications, Yellow Pages and electronic directory markets, as well
as to government agencies, law firms and investment companies looking to understand
trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives
from across industries seeking expert guidance on how companies are finding
innovative ways to grow. Additional information is available at http://www.biakelsey.com,
on the company’s Local
Media Watch blog, Twitter (http://twitter.com/BIAKelsey)
and Facebook (http://www.facebook.com/biakelsey).
For more information contact: Eileen Pacheco
For BIA/Kelsey
(508) 888-7478 eileen@tango-group.com
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