The Complete Guide To Pay-Per-Call
The Complete Guide To Pay-Per-Call
Complete
Guide to
Pay-per-call
Brought to you by the creators of CallThread, Soleo’s
makes sense that 64% of marketers plan to increase occurs. The bottom line: performance marketing
their spend in performance marketing in 2021 in drives a higher return on investment (ROI).
Performance marketing is a lead generation where advertisers pay a xed price for quali ed
strategy where advertisers only pay when a call-based leads, is a lucrative strategy for service-
conversion event occurs. Performance marketing based businesses that need high-quality leads. In
has been on the rise for years, replacing traditional this guide, we will help you decide if pay-per-call is
advertising methods and growing to represent $6.8 right for your business. We will introduce you to
billion of ad spend each year. some basic principles, highlight key bene ts,
Why? Performance marketing enables marketers to per-call to other forms of performance marketing.
30 Why CallThread
Business hours month, day, or hour. Your partner will not send you
Establish the hours you are available to receive more calls than you are able to handle for that
Bid
Business category Set the price you are willing to pay for a call that
De ne the speci c services you o er (e.g. HVAC lasts a speci ed duration (a typical call duration is
repair, bed bug fumigation, debt consolidation). A between 90-120 seconds but varies by industry,
good pay-per-call partner will use ad targeting category and time of year). Work with a pay-per-
techniques and Interactive Voice Recording (IVR) to call partner who can recommend a competitive bid
drive calls that match your speci c business in your category and adjust bids for seasonality and
The industries that see the best return on investment with pay-per-call are service-based businesses
that require a phone call at some point in the sales cycle. Some of the top performing industries in
pay-per-call include:
• Electricians Other
center.
ROUTE
3. An IVR is typically used to lter calls and
Quali ed call sent to you
can be provided by you, your partner, or if
business line.
I N VEST
4. When the call reaches the predetermined Only pay for quali ed calls
duration, it becomes billable, and you pay
including:
These channels include SEO, SEM, social media, These channels include voice search calls, directory
programmatic, display advertising and other lead- assistance calls (calls that come from consumers
generation techniques that use the internet. who call directory assistance), and intercept tra c
With most inbound calls, the consumer nds the tracking number through the above channels,
chooses to call, and then is connected to the advertiser’s line directly. However, some pay-per-call
providers o er transfer calls as well. Transfer calls can be inbound (the consumer calls the third-party
call center which quali es the call before transferring it to the advertiser’s business) or outbound (the
third-party call center reaches out to the consumer via SMS messaging, AI chat or by phone, typically
after the consumer lls out a lead-gen form). TCPA and other national laws and regulations restrict
how these calls are managed, so it’s best to proceed with extreme caution until you have a deep
be hard to know what kinds of calls to allow and protect your brand from competitors and
what practices you should adopt so you get the compliance threats as well as provide your callers
best tra c possible for your budget. with a positive consumer journey while you develop
Do: Don't:
Remain compliant with TSR, TCPA and CCPA Accept outbound calls, transfers, or SMS
restrictions
Prohibit use of branded bidding Compete with your internal marketing e orts
Specify the advertising channels you allow Accept calls from unknown sources
Establish the process for approving ad Allow pubs to incentivize tra c with
creatives unapproved promotions
Use the duration to qualify calls and Intentionally disconnect calls before they
disconnect unquali ed calls reach duration
can uctuate depending on your industry, desired insurance businesses willing to pay a premium for
billable duration, competition in the pay-per-call calls than appliance repair businesses, and the
space, and the time of year. competition drives a higher price. You can expect
In general, the higher the average cost of your your industry sector as well.
you. For example, a call for appliance repair is The price of your calls will also be impacted by
cheaper than a call for auto insurance because your desired duration, which should be the amount
one-time appliance repair service is less expensive of time you need to qualify the call on your end
than long-term auto insurance. But there’s another before you are charged. A 90-second duration
reason appliance repair calls are less expensive generally costs less than a 120-second duration.
Appliance repair
Auto services
Home services
Travel
Senior services
Pest control
Insurance providers
Financial services
Home security
Average price
For example, the health insurance industry is busiest pay-per-call competition in your category, so they
during open enrollment in November and December can help you anticipate and navigate uctuations in
while home improvement businesses have a higher call price to keep your bid competitive.
If your industry has a busy season, you can expect campaign, there is a general ramp-up period with
your pay-per-call competition to steepen whenever your provider. We recommend starting a campaign
the peak season for your business occurs. This can up to 3 months prior to your peak season, so the
a ect both the price per call and/or the required campaign is running at scale for your busy season.
Annual consumer demand in the pest control, Medicare, and home security verticals*
*based on 2019-2021 search trend data to demonstrate how seasonality can a ect demand depending on your industry. Search volume
not to scale.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
your brand could be held nancially Chief Legal & Compliance O cer at Soleo
• Telephone Consumer Protection Act (TCPA) • Children’s Online Privacy Protection Act
• California Consumer Privacy Act (CCPA) • Health Insurance Portability and Accountability
• Telemarketing Sales Rule (TSR) Act (HIPAA)
• Federal Trade Commission Act (FTC) • Controlling the Assault of Non-Solicited
• Gramm-Leach-Bliley Act (GLBA) Pornography and Marketing Act (CANSPAM)
In general, look for a network that thoroughly To further protect your brand, ensure your network
vets all its call sources, reviews and approves has established integrations with quality control
a liate creatives, and screens calls for quality vendors such as those that focus on authentication
assurance – both to improve your conversion of consent or run litigation scrubs from known
"
Today, marketers are faced with increasing data and privacy challenges – which is exactly why you
need consent-based marketing practices in place to protect your brand. If you’re unfamiliar with the
term, consent-based marketing is the practice of only contacting consumers that have given prior
express, written consent to be contacted - ensuring that only prospects who have actively
Marketers across industries are using lead certi cation tools like TrustedForm to implement
consent-based marketing and stay compliant with increasing privacy laws and regulations, validate
lead data, and ensure they’re only contacting people who have actually raised their hands to be
contacted. TrustedForm provides data along with its certi cates, validating points such as website
origin, lead age, time on page, typing speed, veri ed consent language, and more.
By implementing technology that allows you to lter through these data points from compliant leads,
you can increase the quality of leads that ow directly into your CRM -- making your sales team
Tracy Laney
Director at ActiveProspect
that has a documented compliance program, but if “The TCPA has created more millionaire
your campaign will accept transfer calls, there are Plainti ’s lawyers than any other federal
some particular considerations you need to statute. Don’t fall victim to predatory lawsuits
Outbound calls of any kind are subject to comply have the necessary level of consent.”
consumers.
Registry.
Founder of ThinkLikeAnApp
Pay-per-call is a great way to get quali ed leads for industry. Additionally, most businesses feel that if
your business. With pay-per-call, you get all the they are able to talk to a potential customer on the
bene ts of performance marketing, with some phone, they have a better chance to persuade them
Callers are often ready to buy a product or Even though the initial cost per lead is generally
schedule an appointment at the time of their inquiry. higher in pay-per-call, calls are 10-12 times more
This is because they are usually past the likely to convert than other forms of leads, so you
researching phase of their customer journey and can expect your return on ad spend to be higher as
spend 28% more, and have a 28% higher retention Targeting for your most pro table services
rate than customers who come from other forms of A pay-per-call campaign can target your ideal
leads (Forrester). This means your business can consumer pro le, so you can speci cally focus on
experience a more immediate ROI that continues to the services (like auto repair or termite fumigation)
pay consistently in the long run. or customer segments (like U65 or insured drivers)
Maximize your brand’s reach attract the right consumers through ad targeting
Pay-per-call leads are usually consumers who are in and then present an automated front-end menu to
the top or middle of the marketing funnel and who further lter these calls.
searching for your services. For example, a pest Simple lead ltering
control brand might produce bottom-funnel leads In addition to targeting the callers you do want,
by bidding on keywords like “termite inspection,” pay-per-call also makes it easy to lter out calls you
but pay-per-call providers would bid on keywords don’t want (such as customer service calls) using
like “termite inspection reviews” or “best termite front-end IVR menus, so your sales agents are
removal companies” to refer consumers to their focused on the calls that will bring your business the
Access to call generation experts recordings and transcriptions, it’s easy to evaluate
Working with a quali ed, experienced pay-per-call your campaign’s performance and ensure you’re
provider allows you to crowdsource your call-based getting the quality leads you want. This also allows
leads from experts in call generation. Your partner, you to identify the call sources and geographies
who has expertise in your industry, will earn the that generate the most quali ed and valuable calls
consumer’s attention and trust and connect the so you can and optimize your marketing spend
Leads on demand
focus.
Not all callers have the same needs, and calls for
less likely to convert into a sale. The right Digital Media Sales Executive
To help you decide if pay-per-call is the right with the goal of increasing brand awareness among
approach for you, we’ll compare it to four other your target audience because it gives you a wide
common performance marketing models: pay-per- reach (thousands of views) for a relatively low cost.
In a pay-per-impression model, advertisers pay just awareness. It is also easier to demonstrate the
based on how many impressions, or views, their ad value of your ad spend, since calculating ROI on
receives, usually in increments of 1,000. Common brand awareness is notoriously di cult, particularly
forms of advertising that use this model include when compared to tracking calls and sales.
marketing.
looking to buy your service rather than those who Although clicks are relatively cheap, the burden of
are interested in something related to your service. converting the clicks into leads falls on you and your
Appliance repair
Auto services
Home services
Travel
Senior services
Pest control
Insurance providers
Financial services
Home security
Pay-per-call vs pay-per-lead
Pay-per-lead is a model where you pay for the
With pay-per-lead, the advertiser has the burden of need their questions answered and if satis ed, are
reaching out to the lead, nurturing them, and ready to purchase. For these reasons, pay-per-call
making the sale. Leads could be days old by the time leads are more likely to convert than form lls.
conversion process typically occurs immediately. Outbound dialing also has compliance regulations,
There is also more urgency with people who call. started with pay-per-lead.
businesses that require some sort of service makes sense for businesses looking for customers
installation like cable, internet and home security, that drive long-term value and those that have
although it can also work in nancial and legal recurring revenue streams.
services as well.
For the pay-per-sale model, the advertiser pays a to nd a liate partners since most a liates already
third party to complete a sales transaction on their have o ers for calls, clicks, and leads. Pay-per-call
behalf, or they pay for each referral that turns into a delivers a higher quantity of leads at a more
sales.
Apart from return on ad spend (ROAS), which varies It’s important to note, though, that some businesses
among advertisers based on their budget and need less time than others to qualify callers and
business goals, call duration is perhaps the best key schedule a service appointment.
program due to its correlation to sales conversion. Below are the average call durations by industry
We can predict that, the longer a caller stays on the from CallThread’s network over the last three years,
line, the more interested the caller is in the to give you a benchmark for your pay-per-call
advertiser’s service and the more likely they are to campaign’s average call duration.
buy.
Appliance repair
Auto services
Home services
Travel
Senior services
Pest control
Insurance providers
Financial services
Home security
Average duration 5 10 15
(minutes)
business categories.
Appliance repair
Auto services
Home services
Travel
Senior services
Pest control
Insurance providers
Financial services
Home security
You need to set up the resources to handle the calls campaigns route their calls to contact centers.
delivered to you. Call sources become frustrated if There are situations, however, when the call is best
the calls they generate are sent to voicemail, routed to individual stores or franchises, or a hybrid
especially if these calls can be sent elsewhere. Due model that uctuates based on time of day or day of
to this concern, most pay-per-call providers specify week. Some businesses even nd success qualifying
in their agreements that unanswered calls will be calls with an answering service before sending
billable, even if they do not reach the duration along the consumer information to the appropriate
requirement. destination.
This is when you decide what kinds of calls you want. These are the questions you’ll need to answer
What is your budget? What is your bid? What are your goals?
What are your hours and What kind of calls do you Will you have an IVR menu?
targeting restrictions? want?
Do you have channel Will you allow call Will you require a dedupe
restrictions? recordings? period?
The answer to this question will help you determine Ultimately, you want your bid to be competitive so
your bid price and call pacing requirements. You’ll that the best pay-per-call a liates and publishers
need to determine the overall budget for your are incentivized to send their high-quality calls to
campaign either by month or by day. your campaign. If your bid price is too low or your
What is your bid price? these parameters until you get a conversion rate
To answer this question, you’ll need to determine that meets your requirements.
how much you are willing to pay for each call based
on your campaign budget, and you’ll need to set When in doubt, ask your pay-per-call provider what
your billable duration requirement based on how a competitive bid in your industry should be. At
long you need to qualify a connected call. Your bid CallThread, we help all our advertiser partners keep
is also impacted by your competition which may their bids competitive as market prices change with
High
Auto insurance
Price
Senior services
Pest control
Cable, Satellite,
Internet
Auto services
Low
What are your campaign goals and success problem you solve for them (e.g. - HVAC repair or
Determine how you will measure the success of your call center or businesses are open and the
your campaign before it starts, and communicate amount of sta necessary to handle the call tra c.
CallThread, we optimize our calls based on our What kinds of calls do you want?
partners’ cost per lead (CPL) or cost per acquisition Decide if you will allow transfers from outbound call
What are your hours and targeting party call center has already quali ed the caller and
Consider your ideal consumer and where they live party will qualify the caller but transfer them
(e.g. - the zip codes you service), who they are (e.g. without an introduction). Transfers can come from
- homeowners or insured drivers), and what inbound generation methods or outbound dials.
recommend restricting your campaign to inbound can ask your provider to disable call recordings for
Will you have an IVR menu? Deduping is a process that providers use to ensure
An IVR menu is an automated front-end menu that advertisers are not charged for multiple calls from
greets new callers and is used to lter and direct the the same caller in a set period of time. The dedupe
call to the proper destination. Your pay-per-call period is typically set for a rolling 30 days but can
provider may use IVR menus to lter out calls that be less based on the type of service and the ad that
do not meet your target consumer pro le. When is being used to attract the consumer.
to call abandonment.
receive, it’s a good idea to work with a large pay- following considerations:
network works with numerous call sources to create Ensure you have control over your campaign
advertisers’ campaigns.
When you work with a pay-per-call network, all of Ensure they have consistent call volume to meet
your calls come from a trusted, quali ed source. An your business goals
search intent, and geography of each call that's Ensure they have call source transparency and a
live call to your business. Call tracking, real-time reporting, and analytics
Working with a pay-per-call network gives you measure your campaign’s success
while giving you the con dence and security you Proven success in your industry
need in knowing the calls have been vetted by a Look for a partner that has helped businesses
centers more e ectively since they have a larger Look for a network that is well-known and
Sarah Fitzgerald
Manager at Soleo
Your pay-per-call provider will also use this time to your success. Work with your account manager to
closely monitor the calls for quality and use their understand which call sources, channels, and
ndings to tweak their campaigns so they deliver geographies are driving the most value for your
calls that match your target pro les. business. Review your call sources based on
After this ramp up period, you should be able to allocate more of your budget to your high-
increase or decrease your budget to receive more performing sources to get the best leads for your ad
How many of the calls convert? Review both the How many calls are your call sources generating? A
pay-per-call conversion rate (the percent of reliable source delivers a consistent volume of calls
delivered calls that become billable) and your sales that meet your call pacing requirements.
turn into sales) to determine the value the call Once your provider has had the chance to ramp
source creates. Provide consistent feedback to your campaign, you should be able to increase or
your partners regarding sales numbers and decrease your call pacing as your business needs
Compliance
Are the calls you are receiving compliant? Monitor your calls for:
• Incentivized tra c, or callers that are expecting to receive a speci c price or promotion
If you work with a network, they will be monitoring their call sources for compliance. For example, at
CallThread, our dedicated customer success managers rigorously vet our call sources and closely
monitor their calls using call recordings and transcriptions to ensure we deliver compliant tra c to
our partners.
If you accept transfers, be sure to work with a provider that has established quality controls on this
tra c.
these concerns.