Pay-per-call (PPC) is a performance marketing model where advertisers pay publishers for qualified phone calls generated from their ads. This model like RTB Pay per Call is particularly popular in industries where phone calls are an important step in the customer journey, such as insurance, home services, and financial services.
There are two main ways to do pay-per-call: the old way (traditional) and the new way (RTB pay per call). Both try to get people to call your business, but they go about it differently. It’s kind of like choosing between calling a business directly or having an operator connect you.
So, what exactly makes these two ways of doing pay-per-call different? Let’s take a closer look at how each one works, what’s good about them, and what’s not so good. This will help you figure out which one is the right fit for your business.
Key Takeaways
- Programmatic advertising, including real-time bidding (RTB), now accounts for 89% of all digital ad spend.
- RTB pay-per-call offers automated, real-time auctions for call placements, while traditional pay-per-call uses direct transfer models.
- RTB provides faster and more efficient buying for advertisers, with more control over ad placements.
- Traditional pay-per-call may offer higher conversion rates (30-50%) compared to clicks (1-2%).
- The industry faces challenges with inconsistent terminology, leading to confusion between terms like API, ping post, and RTB.
Understanding Pay-Per-Call Marketing
Pay-per-call marketing is all about getting people to call your business. It’s like a bridge between online ads and real conversations. This often works better than just trying to get people to visit your website because it lets you connect with customers who are ready to take action.
Why Pay-Per-Call Stands Out
What makes pay-per-call special? It combines the power of online advertising with the personal touch of a phone call. This means customers get the information they need directly, and businesses can build stronger relationships.
How Pay-Per-Call Works
Pay-per-call systems use clever technology to track calls and make sure they’re connecting with the right people. They also often use automated systems to greet callers and gather information, making the process smooth and efficient. The best part? Businesses only pay for calls that are likely to lead to sales!
The Future of Call-Based Marketing
Thanks to advancements in technology, pay-per-call is getting even smarter! Now, businesses can use data and artificial intelligence to understand what’s working and make their campaigns even better. This means happier customers and more sales.
Who Benefits from Pay Per Call?
Pay-per-call is a great fit for businesses that rely on personal connections, like those offering home services, financial advice, or insurance. It’s a powerful way to grow your business and keep your customers happy.
Traditional Pay Per Call: The Old-School Approach
Remember the “old way” of doing pay-per-call? That’s what we call traditional pay-per-call. It’s a more straightforward approach that relies on direct relationships and established processes.
Think of it like calling a business directly. You dial their number, and they answer. In traditional pay-per-call, publishers use dedicated phone numbers to route calls directly to advertisers. This creates a clear path for tracking and attributing calls.
How Traditional Pay-Per-Call Works
Instead of automated auctions, traditional pay-per-call often uses fixed pricing or manual bidding. This means advertisers and publishers agree on a set price for each call or negotiate prices based on specific criteria.
While this might seem simpler, it lacks the flexibility and real-time optimization capabilities of RTB pay per call. Setting up traditional campaigns can also be more time-consuming, involving:
- Finding the right partners: Advertisers need to identify and connect with publishers who can deliver the desired audience.
- Negotiating contracts: This involves creating proposals, agreeing on pricing and payment terms, and finalizing contracts.
- Manual campaign management: Monitoring performance, optimizing campaigns, and generating reports often require manual effort.
When the “Old Way” Still Works
Even though the “new way” RTB pay per call is getting really popular, the “old way” of doing pay-per-call still has its place. If you already have good relationships with websites or companies that send you great customers, sticking with the old way might be a good idea. It lets you keep things simple and work directly with those partners.
The old way can also be a good choice if you’re trying to reach a very specific group of people. It gives you more control over who sees your ads.
And if your campaign is pretty basic and you don’t need fancy targeting or real-time adjustments, the old way can get the job done without any extra bells and whistles.
RTB Pay Per Call: The New Way to Reach Customers
Remember how we talked about the “new way” of doing pay-per-call? That’s where Real-Time Bidding (RTB) comes in. It’s like an automated system that makes pay-per-call marketing way more efficient. Instead of setting up everything manually, RTB uses sophisticated algorithms and lightning-fast auctions to connect businesses with potential customers.
How RTB Works for Calls
Imagine an online auction where businesses compete to show their ads to potential customers. That’s essentially what RTB pay per call does for calls. When someone shows interest in a product or service – by clicking on an ad, visiting a website, or searching for specific keywords – an auction is triggered in milliseconds.
Here’s a more detailed breakdown of the process:
- Call Initiation: A user performs an action that signals their intent, like clicking a “call now” button or filling out a form.
- Bid Request: The publisher’s Supply-Side Platform (SSP) sends a bid request to an ad exchange, containing information about the user and the call opportunity. This data can include demographics, browsing history, location, device type, and more.
- Real-Time Bidding: Advertisers, using Demand-Side Platforms (DSPs), analyze the bid request and automatically place bids based on their pre-defined criteria and the perceived value of the call.
- Ad Selection: The ad exchange selects the winning bid in real-time, usually within 100 milliseconds.
- Call Connection: The user’s call is routed to the advertiser who won the bid.
This entire process happens seamlessly in the background, ensuring a smooth and efficient experience for both the user and the advertiser.
Why RTB is a Game-Changer
RTB pay per call offers some serious advantages over the old way of doing pay-per-call:
Granular Targeting
RTB allows for precise targeting based on a wide range of data points, ensuring your ads reach the most qualified leads. You can target based on demographics, location, device type, browsing behavior, and even the specific keywords they used to find your ad.
Cost-Efficiency
You only pay for the ads that actually generate calls, optimizing your ad spend and maximizing your ROI. Dynamic bidding strategies allow you to adjust your bids in real-time based on the value of each call.
Enhanced Scalability
Need to reach more people? RTB makes it simple to adjust your campaigns and scale your reach without sacrificing efficiency. You can easily increase or decrease your bids, adjust your targeting parameters, and optimize your campaigns based on real-time performance data.
With RTB, businesses can make smarter decisions based on real-time data, ensuring their ads are seen by the most interested customers. It’s a double win for everyone!
Choosing the Right Pay-Per-Call Method: A Side-by-Side Comparison
When deciding between traditional and RTB pay per call, you must understand their main differences. This table provides a clear overview:
| Traditional Pay Per Call | RTB Pay Per Call |
|---|---|
| Direct transfer modelFixed pricing or manual biddingLonger setup timeBroader targetingManualLess flexibleSuitable for specific industries and partnerships | Programmatic auctionDynamic, real-time biddingQuicker implementationGranular, highly specificAutomated, real-timeMore flexibleFlexible for various campaign types |
Making Informed Decisions
The best pay-per-call method depends on your specific needs, industry, and marketing goals. Think about your target audience, campaign objectives, and desired level of optimization and flexibility to achieve the best results.
Measuring Success: Performance and ROI
Pay-per-call is great because you can easily track how well it’s working. Here’s how to check if your campaigns are a success:
Are People Calling and Becoming Customers?
With the new way of doing pay-per-call (RTB), you’re more likely to get calls from people who really want what you’re offering. This is because RTB uses smart technology to show your ads to the most interested people. To see how well your campaigns are doing, keep an eye on how many calls turn into actual customers.
Also, check how much it costs to get each new customer (CAC) and how much money you’ll make from them over time (LTV). This helps you see if your campaigns are making you money in the long run.
What Are Callers Saying?
RTB systems can tell you a lot about your calls, like how long they last, what people are saying, and if they end up buying something. Pay attention to these details to understand what your customers like and dislike. You can even use cool tools that analyze call recordings to find ways to improve your sales pitches and customer service.
Is Pay-Per-Call Worth It?
To figure out if pay-per-call is a good investment, look at both the quick wins (like immediate sales) and the long-term benefits (like repeat customers). Remember that phone calls often lead to bigger sales and more loyal customers. There are also fancy tools that can track everything about your campaigns, from how much each new customer costs (CPA) to how much they’re worth over their lifetime (CLTV). This helps you make smart decisions about where to spend your money in the future.
Finding the Perfect Pay-Per-Call Fit
Pay-per-call is all about getting people to call your business instead of just visiting your website. This works really well because you can talk to people who are ready to buy what you’re selling.
There are two ways to do pay-per-call: the old way (traditional pay-per-call) and the new way RTB pay per call. Traditional pay-per-call is like calling a business directly, while RTB pay-per-call is like having an operator connect you. Both can be good, but it depends on what you need.
RTB is often better at finding the right people for your ads and making sure you don’t waste money. It can also do a lot of the work for you, so you don’t have to spend time setting everything up.
But traditional pay-per-call can be good too, especially if you already have strong connections with other companies that send you customers. It’s also useful if you’re trying to reach a very specific group of people.
To figure out which way is best for you, think about how much money you have to spend, who you’re trying to reach, how complicated your campaign is, and if you want to do everything yourself or have a computer do some of the work.
No matter which way you choose, pay-per-call can help you grow your business and make your customers happy. Just remember to track how well your campaigns are doing so you can keep making them better!
Frequently Asked Questions
What is Pay-Per-Call Marketing?
Pay-per-call is a performance marketing strategy. Advertisers pay publishers for quality calls generated. It blends online and offline elements, leading to higher conversion rates.
How Does Real-Time Bidding RTB Pay Per Call?
RTB pay-per-call uses automated auctions for call placements. Supply Side Platforms help publishers sell call inventory. Demand Side Platforms assist advertisers in buying call placements.
Ad exchanges facilitate these transactions. This allows for more efficient buying and selling of call inventory.
What are the Key Components of Pay-Per-Call Systems?
Key components include call tracking technology and IVR systems. Commission structures based on call quality are also important.
AI-powered call analytics and attribution capabilities have been integrated into modern systems.
How Does Traditional Pay-Per-Call Differ from RTB Pay-Per-Call?
Traditional pay-per-call uses direct transfer models with fixed pricing. It’s simpler but lacks real-time optimization capabilities.
RTB pay-per-call uses automated bidding. It offers greater control and flexibility for advertisers and publishers.
What are the Benefits of RTB Pay-Per-Call Compared to Traditional Methods?
RTB pay-per-call often yields higher conversion rates. It can target high-intent callers in real-time.
It offers more efficient buying and selling of call inventory. This reduces wasted impressions and minimizes ad fraud risk.
How Can Advertisers Measure the Performance and ROI of Pay-Per-call Campaigns?
Consider customer acquisition cost, lifetime value, and call quality metrics. Overall return on investment is also crucial.
AI-powered call tracking and analytics tools help analyze performance. These tools work for both RTB and traditional pay-per-call campaigns.
