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Eileen Pacheco
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Charles Laughlin
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The Kelsey Report®
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Greg Sterling
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Neal Polachek
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June 22, 2005

Pay-Per-Call to Reach US$1.4 Billion by 2009, According to a New Report by The Kelsey Group

A panel will discuss the potential impact of PPCall on print and Internet Yellow Pages at The Kelsey Group’s DDC2005 Conference in September.

Princeton, NJ (June 22, 2005) -- Pay-per-phone-call (PPCall), performance-based online advertising that delivers telephone calls rather than clicks, will generate revenues of US$1.4 billion by 2009, according to a new report by The Kelsey Group, entitled “Calls, Clicks & SMEs: Driving Leads from Web to Phone.” PPCall could generate revenues as high as US$4 billion by 2009, depending on the average price per call and actual market penetration, which the firm estimates could range between 5 percent and 15 percent by 2009.

“Consumers are accustomed to making phone calls to contact local businesses and local businesses are similarly used to closing leads over the phone,” said Greg Sterling, program director for The Kelsey Group’s Interactive Local Media practice, and lead author of the report. “A performance-based online medium that delivers calls rather than clicks therefore makes sense for the local market.”

The report offers a five-year outlook for PPCall; discusses the opportunity and related challenges; examines current service providers, models and strategies; and outlines the benefits of the model for the local marketplace, including:

  • PPCall potentially addresses the millions of small businesses that rely on the phone for leads and sales.
  • PPCall is less susceptible to fraud than clicks and is more transparent to local businesses.
  • PPCall helps “close the loop” in tracking offline consumer buying behavior.

The topic of PPCall has been added to the agenda of The Kelsey Group’s Directory Driven Commerce 2005 Conference (DDC2005) taking place September 27-29, 2005, at the Denver Marriott Tech Center, Denver, Colorado. PPCall will be discussed during a panel session entitled “New Pricing Paradigms” on Day 2 of the conference. This panel will examine how pay-per-click, pay-per-call and other creative, performance-based pricing structures are changing the business model for Internet Yellow Pages, as well as potentially for the core print directory product.

About DDC2005
Since 1988, The Kelsey Group’s annual Yellow Pages conference has been recognized as the definitive event on the future of the industry. DDC2005 will consider the question, “What is the future of the Yellow Pages?” Keynote speakers include George Burnett, president, CEO and director, Dex Media, and Charles Stubbs, president and CEO, YellowPages.com. In addition, Marc Tellier, CEO of Canada’s Yellow Pages Group, will sit down with a Kelsey Group analyst for a probing one-on-one interview. For more information about DDC2005, contact The Kelsey Group by phone at (609) 921-7200 Ext. 10, or online at www.kelseygroup.com/ddc2005/.

DDC2005 sponsors include Acxiom Corp., Amdocs, DCCI, Fast Search & Transfer, Geosign, Innovectra, Interchange, Local Matters, OKS Group, TrafficLeader and Verizon Information Services. DDC2005 Association Partners include the Association of Directory Marketing (ADM), the Association of Directory Publishers (ADP) and the Yellow Pages Association (YPA). For information on sponsorship opportunities, contact Nanci Karas at (609) 921-7200 Ext. 21 or [email protected].

About The Kelsey Group
The Kelsey Group is the leading provider of strategic research and analysis, data and competitive metrics on Yellow Pages, electronic directories, small-business advertising and local search. Beginning in 1986, the company has built a reputation as the leading analyst firm covering the directory publishing community, providing advisory (The Kelsey Report® and Interactive Local Media), publishing (Global Yellow Pages™ and Local Media Journal™) and consulting (more than 300 individual assignments).

For more information contact:

Eileen Pacheco
(781) 556-1026
[email protected]

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