Some interesting news from Google this week. The company has been testing telephone response tracking for AdWords and is now starting to roll out the service to more users.
The Good News
We’ll soon be able to attach a unique toll free number to our clients AdWords ads and track those calls at no additional charge. Google is making the service free for now, while they get it rolling. This is excellent news because in the past we have often used a phone number in AdWords text or display ads but there is significant additional cost involved in setting up a seperate phone number and then tracking calls coming into that number. This integration will be seamless and at no cost, the price tag is perfect for local advertisers. Not only is the toll-free number and the tracking free, Google does not initially plan to charge for calls made in response to its ads. So every call made instead of a click will be added value for the advertiser. Not only that, but callers are more likely to be purchasers than clicks, so the conversion rate on calls should be much higher than those clicking to the website.
The Not So Bad News
Unlike other Google services which serve to keep people exposed to ads or provide platforms for ads to be shown on, this one probably won’t remain free. Google is clearly looking to leverage its technology to take back dollars being spent with third parties to track AdWords phone responses, and that will mean charging per phone call. The question is how much? Our guess is that Google will run the service for free for a while to gather enough information to determine what a fair charge per call would be. There’s no way to use an auction style system to price calls like ad placement, so it would probably have to be a standard rate. Most likely, though, it will still be a lot cheaper than many companies are paying right now to track phone calls from AdWords.
A Side Effect
Tracking phone calls will be a benefit to advertisers and makes AdWords an even better value than it has been in the past (which is still pretty good). But, it also stands to make display advertising on Google’s network more valuable. In general, display advertising is more visible, but suffers from lower click-through rates than search advertising. However, our guess is that display ads will generate more calls than text ads, making them more attractive to advertisers, something Google has been working on for a while now.
We’ll be adding this service to our current advertisers accounts as soon as it become available.