AOL's Pay Per Call Ads Live This Week

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Source Title:
AOL Launches Pay-Per-Call Ads
Story Text:

Following the deal made with Ingenio back in January this year, AOL will launch Pay Per Call ads on Search results this week...

MediaPost reports and adds some background on Pay Per Call, including this:

Ingenio's pay-per-call model works similarly to the bid-based system favored by the major search engine's sponsored links. With Ingenio, however, advertisers bid on categories of business rather than keywords; Ingenio has defined 1,200 different business categories open for bidding. The minimum bid for a listing is $2 per call, which is between 10 and 20 times more than the minimum bid for sponsored pay-per-click links on the major search engines. Barach said that many categories of businesses are going for more than $20 per call--and that, on average, businesses appear to be willing to pay between five and 15 times more for a call than for a click.

For service providers, this could be great, and for AOL, and whoever is likely to follow, big business...

Comments

I love this stuff

I love this pay per call model - really opens up online to a whole new market.

nobody's fixing the problem

"Decide how much a phone call lead is worth to you."

We see so much about click fraud in competitive areas, and now we set up another per-unaccountable-user-initiated-transaction system with 5-15x higher costs per transaction?

 

we did this with a UK company for a month - can't remember their name now but it was a well known one - basically they made the account live before we'd agreed, charged us for calls we didn't receive (when in fact the office had been closed so we couldn't have accepted them) and the calls they did put through were from categories we hadn't requested and in some cases for products we'd specifically excluded (we don't, for example, fix peoples computers, we do corporate network support - which didn't see that hard to understand to me but was clearly causing them some problems).

Then they spent the next 12 months demanding money with menaces.

As an idea it's great. That particular implimentation stank. AOL have to get this exactly right from the off or it's dead in the water. It'll be interesting to see how well it works.

Could be Big

I've been tracking Ingenio for quite a while, as their Pay Per Call model is similar in concept to something we're working on. I think they've got a good product and they've got a good track record with their Live!Advice Directories. I think this could be massive. Obviously, depends on implementation

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