Cost-per-call advertising, specifically targeting telephone inquiries, represents a pricing model where advertisers pay only when a phone call is generated from their online advertisements. This strategy differs from traditional cost-per-click (CPC) advertising, which charges advertisers when a user clicks on an ad, regardless of whether that click leads to a direct interaction or sale. For instance, a business using this model might pay $20 for each call received from a prospective customer who clicked on their advertisement.
The importance of this approach lies in its directness and measurability. It allows businesses to focus their advertising budget on generating tangible leads in the form of phone calls, which are often associated with higher conversion rates than website visits alone. Historically, tracking phone calls originating from online sources was challenging, but advancements in call tracking technology have made this model increasingly viable and attractive for businesses seeking a direct return on their advertising investment. Benefits include improved ROI tracking, better lead quality, and the ability to target customers actively seeking immediate solutions or information.