Dialing into Success with Pay Per Call
Performance based payment for online advertising is an established part of the online marketing mix, and one of the fastest growing forms is Pay Per Call. In fact, Forbes predict that Pay Per Call (PPCall) will be 10 times more popular than Pay Per Click (PPC) within the next 10 years, in part because of the rise in use of smart phones and mobile marketing.
PPCall is a payment system similar to PPC, in that a business pays per action, but the difference between the two is that with PPCall, you only pay if someone actually calls the number on the advertising, whereas with PPC you pay when they click on the advert regardless of whether or not that click is from a casual browser or an actively interested consumer. With PPCall you are only paying for leads or customer contact, making it potentially better value for money – depending on whether or not you manage to convert a high number of calls to sales. Research by Kelsey showed that incoming calls convert at 45% compared to the 3% of Pay Per Click, so you are also paying for a lead more likely to progress to a sale.
Traditionally, performance marketing has relied on online conversion; people going to an affiliate website, seeing a product advertised and buying through the link on that site, but with Harris Interactive stating that 54% of people prefer the reassurance of some human interaction before completing a purchase of significance, the performance marketing industry needs to rethink its methods. A PPCall payment system combined with the use of a call tracking service is an ideal way for performance marketers to provide consumers with a point of human contact, whilst still being able to attribute a lead or sale to the relevant advertiser. Within the performance marketing industry, this is how PPCall works:
- An Affiliate Network provides a PPCall solution to an Advertiser.
- A Publisher drives phone calls to the Advertiser through a tracked number provided by a call tracking company in order to generate leads and/or sales for the Advertiser.
- The call tracking service collects and validates the phone call data and makes it available to the Affiliate Network
- The Network pays the Publisher for the leads or calls.
There are now call tracking services made specifically with Performance Marketing in mind. A product newly developed by ResponseTap; rtap-performance, recognises that some products, in particular more complex products or services such as loans or holidays, need a telephone number attached in order to increase the chances of closing a sale. Not only are your chances of a sale greater, but call tracking software enables complete transparency between Networks, Publishers and Advertisers, and gives all parties a clear insight into what is and is not creating sales within performance marketing.