The Fundamentals of Pay-Per-Call Marketing
TIPS & TRICKS
Jeff Henniger
4/21/20243 min read


The Fundamentals of Pay-Per-Call Marketing
Pay-per-call marketing is a form of advertising where advertisers pay for phone calls generated by their ads. It is a highly effective marketing strategy that allows businesses to connect with potential customers directly through phone calls. In this blog post, we will dive into the basics of pay-per-call advertising, explaining how it works, its benefits compared to other marketing channels, and the key metrics to track for success. By the end, beginners will have a solid understanding of pay-per-call marketing to kickstart their campaigns effectively.
How Pay-Per-Call Advertising Works
Pay-per-call advertising is a performance-based marketing model where advertisers pay only for the phone calls they receive. It works by placing ads, typically online or on mobile devices, that include a phone number for users to call. When a potential customer sees the ad and decides to make a call, the advertiser is charged a predetermined amount for that call.
There are several ways pay-per-call advertising can be implemented:
Call-Only Ads
Call-only ads are specifically designed for mobile devices and only display a phone number. When users click on the ad, it directly initiates a phone call. This type of ad is highly effective for businesses that rely on phone calls to generate leads or sales.
Click-to-Call Ads
Click-to-call ads are similar to call-only ads but are not limited to mobile devices. They can be displayed on various platforms, including websites, search engine results pages, and social media. When users click on the ad, they are redirected to a landing page with a phone number that they can call.
Call Extensions
Call extensions are a feature offered by search engines that allow advertisers to include a phone number alongside their search ads. When users see the ad and click on the phone number, it initiates a call. Call extensions are a great way to drive phone calls directly from search engine results pages.
Benefits of Pay-Per-Call Marketing
Pay-per-call marketing offers several benefits compared to other marketing channels:
Highly Targeted Leads
With pay-per-call marketing, businesses can reach highly targeted audiences who are actively interested in their products or services. Since users make the effort to call, they are more likely to convert into leads or customers.
Increased Conversion Rates
Phone calls have a higher conversion rate compared to other forms of advertising. When potential customers call a business, they are often further along in the buying process and more likely to make a purchase.
Real-Time Tracking and Optimization
Pay-per-call marketing allows advertisers to track and analyze call data in real-time. This data can provide valuable insights into the effectiveness of campaigns, allowing advertisers to optimize their strategies for better results.
Cost Control
Advertisers have full control over their budget with pay-per-call marketing. They can set a maximum cost per call or a daily budget to ensure they stay within their desired spending limits.
Key Metrics to Track for Success
Tracking key metrics is essential for measuring the success of pay-per-call marketing campaigns. Here are some important metrics to monitor:
Call Volume
Monitoring the number of calls generated by your ads is crucial for understanding campaign performance. Increasing call volume indicates that your ads are effective in driving engagement.
Call Duration
Call duration provides insights into the quality of leads generated. Longer call durations often indicate higher levels of interest and engagement.
Conversion Rate
Measuring the conversion rate helps determine the effectiveness of your campaigns in generating sales or leads. It is calculated by dividing the number of conversions by the number of calls received.
Cost per Call
Calculating the cost per call allows you to evaluate the efficiency of your campaigns. It is determined by dividing the total cost of advertising by the number of calls generated.
Return on Investment (ROI)
ROI measures the profitability of your pay-per-call campaigns. It is calculated by subtracting the total cost of advertising from the total revenue generated, and then dividing by the total cost of advertising.
Conclusion
Pay-per-call marketing is a powerful advertising strategy that allows businesses to connect with potential customers directly through phone calls. By understanding the basics of pay-per-call advertising, its benefits compared to other marketing channels, and the key metrics to track for success, and can effectively kickstart campaigns. With its highly targeted leads, increased conversion rates, real-time tracking and optimization, and cost control, pay-per-call marketing is a valuable addition to any marketing strategy.
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