• by Bill Dinan , January 5, 2010

As media agencies, publishers, SEM resellers and others look for additional ways to monetize leads, many are considering or already incorporating pay per call into their offerings. Many advertisers find pay per call valuable because it is a low-risk model and they can measure calls better than clicks. Just think of an auto repair mechanic, an attorney or any other service-based business: a call spells R-O-I more than a click. For those selling pay-per-call advertising, what are the top considerations to remember when designing and/or implementing a program?

Set benchmarks for billable calls

First, it is crucial to help advertisers set benchmarks for their program. Call duration -- measuring the length of a customer call -- is a key way for advertisers to assess the quality of leads. Since the duration of a valuable, billable call will vary, you should examine what length of call is deemed worthy before setting the benchmark. Also, determine whether advertisers will be charged multiple times for a lead that calls more than once in a designated time period. Remember that metrics will vary based on the advertiser's industry and services/products offered -- for example, multiple calls to a pizza parlor versus an attorney in one month.

Adjust benchmarks for different advertising media and industries

Call durations will vary based on whether the medium is print-based or online. Consumer buying and researching patterns depend on the medium and must be taken into account to accurately evaluate a pay-per-call campaign.

A consumer looking for a florist might be able to do more research online before picking up the phone to contact the merchant, compared to one that is researching the same florist in the print Yellow Pages. Thus, the consumer searching online might spend 30 seconds or less on the phone, whereas the consumer who used the Yellow Pages might have more questions generating a longer call. Call durations are relative to different media types and must be thought of that way when setting benchmarks. When measuring the impact of calls, the advertiser's industry will also make a difference. A quality call for a lawyer might be five minutes or more instead of a 30-second call to a local bicycle repair shop where a consumer might only need the hours of operation.

Filter out noise or invalid calls

Telemarketing calls should be avoided at all costs because they skew a pay-per-call program. Technologies should be used to filter these calls from pay-per-call programs because you do not want advertisers to associate them with the program. We all know that the negative calls are the ones that advertisers will remember, so it is best to do everything possible to avoid telemarketing calls and make sure you are delivering real calls and leads to advertisers.

To cap or not to cap

Advertisers that are already familiar with subscription-based models sometimes only agree to a pay-per-call program if publishers cap the monthly billing amounts, regardless of lead-generation levels -- they fear having to pay for more than they have budgeted. However, the conversation should be shifted to a leads-based discussion versus advertising cost. A good compromise between capping and not capping is to offer a rollover set-up. If an advertiser hits a cap, the overage from another month can carry over to meet the advertiser's budget and the full value of the advertisement.

We are still in the early days of pay per call, but many are recognizing that the model provides advertisers an excellent way to measure valuable, ready-to-buy leads. Also, some businesses that are not ready to move to a straight pay-per-call model are integrating it with their existing pay-per-click platforms for a hybrid approach.

Offering a pay-per-call pricing structure will allow you to increase revenues by monetizing leads and will also help retain your advertiser base. Just remember -- some advertisers understand calls more than clicks, but you will still have to work with them to establish appropriate benchmarks so they can determine the quality of their campaign and see the real value of pay per call.