If you can recall, last year (around October) Google started a project called Click-to-Call that allowed users to click on an ad and enter their phone number and connect with the advertiser.
Google and it’s very profitable AdWords is testing new service Click-to-Call to provide the user with the security to speak to an advertiser without passing vital information (like phone numbers) for companies that work on a call equals a lead. previous post
The Click-to-Call service was the first CPA type ad to come from Google’s AdWords Program. CPA stands for Cost Per Action or you only pay when a specific action is taken by the user, in this case a call is made. The way to track such an action is that Google would complete the call. This was similar to a similar service offered by Ingenio called Pay Per Call. The major differences, Google’s program was limited (as in they didn’t show these type of ads frequently) and Google does not provide any information about the caller, whereas Ingenio provides the phone number that the call was made from, length of call, date and the geographic location (city, state) of the caller.
Google does provide more information about the “experiment:”
What happens to click-to-call ads after December 3, 2007?
This ad format will no longer appear in Google search results. If you have active click-to-call ad campaigns, they will stop running completely after December 3, 2007. Statistics from click-to-call ads that you have already run (including clicks, impressions, and CPC) will still be included in your reports until January 9, 2008.Why did you decide not to adopt click-to-call ads permanently?
The click-to-call ads trial was an experiment designed to measure advertiser interest and user adoption. The experiment has ended, and we’ll use the results to improve AdWords and build more solutions for advertisers who value phone calls.
So, now that the end is near, why would Google discontinue a service that may need additional development, but is a viable addition to their online advertising portfolio?
Ingenio, mentioned above, has been building a quality product around this type of performance based advertising. They have been profitable, as far as we know, but have caught the attention of telecommunications giant AT&T, who, is purchasing the private company. The deal should be completed in January 2008, reportedly.
I posted last week regarding the deal and while doing research on the topic, I stumbled across a theory that AT&T may have been trying to buy the patents that Ingenio owns to give them leverage against the marketing giant that Google has become, quickly devouring previous giants of online advertising like DoubleClick.
Was this in answer to the potential legal leverage that AT&T will have when the purchase of Ingenio is completed? Has Google admitted that they have been unable to make a type of advertising unprofitable?
Related Posts >>
- Google Click-to-Call
- Google Fixes a Bug
- Click to Call gets Abused
- Click to Call goes Global (kinda)
- Google – Click to Call Cancelled?
{ 3 comments… read them below or add one }
I don’t think Google would feel a threat from ATT for any potential acts. They are far too big and have way too many billions in the bank for anything to be scared. Any large company that does sue them ( like their YouTube Subsidiary that has been sued quite a few times) Google just makes a sweet deal with them leveraging their immense internet presence. How could ATT ever resist such a sweet deal? So in my opinion they are not scared in the least. Google may not have made as much as we think they did with Click to call.
By the way, Congratulations on the baby this week!!!! You will love being a Dad!
Michael,
Thanks for the comment. I think Google is concerned with potential lawsuits, especially from companies (like AT&T) that have enough capital to put up a good fight. I think Google could be built up as a bully over a small company like Ingenio. That’s leverage.
Still no Sophia, but it will be NLT Thursday, so a little more patience is in order!
Interesting theory Michael. However there is much prior art in click to call / pay per call for online ads, including from my company which was doing this in eBay and search long before Ingenio and Google.
Sean
thinkingVOICE