The paid search phenomenon has fuelled a significant part of
the Internet's revival, with its simple pay-if-they-click,
don’t-if-they-don’t model.
With the search engines now turning their eyes to local search,
paid search network Espotting is targeting local advertisers wanting yet more
accountability and those with no websites at all. The principle follows the
performance-based model of pay-per-click. If they call a trackable
freephone number, then you pay, if they don’t, you don’t.
For a local advertiser, being able to easily account for
your advertising expenditure should be an appealing proposition. For the
publisher, they are able to tap into a new potential audience of local
advertisers.
So, why do I have my doubts about the idea?
- Financial viability: In my experience, advertisers love the
cost per action model, publishers don’t. Will it make enough money for
the publishers that carry the likes of
Espotting’s ads? How many Internet users are going to call and what
about those dial-up users that can't make calls and surf the Internet
at the same time?
- Pricing point: will the cost appear prohibitive for
advertisers? What's the cost for all those free calls?
- Trust: how comfortable will web users be without being
able to kick the virtual tyres of a small business? However, this goes both
ways, with a clear phone number and fixed address adding to the trust factor
in e-commerce.
For all the potential of pay-per-call, the paid search world
won’t want to kill the goose that lays the golden eggs and pay-per-click will
be the defining model for a good while yet.