Paying for the phone to ring

For some time now, the pay-per-click model has been the prevalent means for Internet retailers to pay performance-based marketing companies for sales leads that result when consumers click on their web ads. But now, Internet marketing company FindWhat.com is adding a pay-per-call option to its services. Rather than have retailers pay whenever consumers click on an ad, the retailers will have the option of paying only when consumers call them to inquire about the product.

Similar to a pay-per-click service, advertisers create ads that prospective customers see when they are searching for products on the FindWhat.com network. But because the value of having an interested buyer on the phone is perceived to be greater than someone who has simply clicked on an ad, the cost of the pay-per-call model will be higher. Advertisers who choose to pay for calls will start with a minimum $2 per lead bid while pay-per-click has a 5-cent minimum, a FindWhat.com spokeswoman explains. In both cases, advertisers bid on how much they’ll pay with the advertisers that pay the most getting top listings based on query results. “Our research has shown that the value of a call is much greater because the customer who calls in is typically closer to the buying decision. Also, the company has the advantage of having an experienced sales rep right there on the phone with them to promote the products.”

While Internet retailers will have the option of choosing between pay-per-call or pay-per-click or utilizing both models, FindWhat.com believes the pay-per-call-only option will appeal to a wider range of retailers that have no or a limited Internet presence. “The market potential for attracting offline advertisers to pay-per-call is enticing especially since there is no need on their part to develop a website,” says Rick Szatkowski, senior vice president for FindWhat.com Network/Private Label. “Consider in the U.S. alone there are approximately 14 million small to mid-sized businesses, 98% of which we believe are not currently able to take advantage of pay-per-click advertising.”