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Ingenio Riding Cost Per Action Wave

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The click to call model used by Ingenio to connect people to businesses represents the foaming surf on the onrushing wave of CPA models for advertising. Justifying that push means being able to monetize the traffic. Display and search advertising have a role, but Ingenio's model represents something more effective.

For an advertiser, the value proposition comes when someone calls via an Ingenio link. The caller's interest in the business has already been established. By virtue of searching by mobile for a local business, the caller represents a qualified lead.

Once the call has been connected, the advertiser pays and Ingenio collects its cut. The action drives this, not the search or the display. It's measurable and likely of greater value to the business owner and the ad budget.

By The Kelsey Group's 2006 Industry Sizing estimates of the potential pay per call market, 14 million websites look like good candidates. Here's the kicker for the business owner: about 10 million of them don't have a website at all, and 4 million only have "brochure-ware" sites.

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