Skype Click & Call Advertising: A Challenge to PPC?

by on July 21, 2010

in Pay Per Click (PPC)

Skype Click & Call May Convert Better than PPC

Today I encountered a potential goldmine for many small businesses, Skype Click & Call Advertising. For those unfamiliar with Skype, it’s a service that offers telephone service over the internet and the company is rolling out a service that is similar to Pay Per Click advertising.

This video offers a quick and dirty explanation:

So What’s the Big Deal?

Skype’s Click & Call Advertising could offer both small businesses an excellent way to leverage the web to increase businesses for a couple of reasons:

Skype Has a Large User Base: 560 Million Worldwide
Skype is Used by Business: 35% of Users
Higher Conversion Rate vs Pay Per Click: Calls May Convert Better Than Clicks
Web Presence Not Needed: Click & Call Focuses on Telephone, Not Web
It Can be Budgeted & It’s Measurable: Similar to Pay Per Click Advertising

In short, this service could offer a significant improvement in online marketing performance for small businesses that use Pay Per Click Advertising. With that said, it’s important that any business considering the use of such a service base that decision on performance. And the only way to determine how Click & Call will perform is experimentation.

How to Experiment with Skype’s Click & Call Advertising

While I haven’t dwelled on all the nuances, a quick back-of-the-envelope analysis suggests that to perform a successful analysis on Skype’s new service, a business should:

  1. Know The Cost of a Sale Using Pay Per Click (PPC) Advertising
  2. Have Tight Processes to Ensure Accurate Measurement
  3. Maximize Registration in local business listings and third party data providers: Check Out
    Small Business SEO: How to Launch that Website
  4. Start with a Small Budget: Expand if Successful, End if Unsuccessful
  5. Actively Monitor Metrics Using Skype’s Partner Marchex

In conclusion, this product appears likely that it will outperform PPC advertising but it’s early yet. The press releases extol the virtues of Click & Call without any real proof of what to expect. While a large user base and the likelihood of a higher conversion rate warrant consideration, smarter businesses should test this product before blindly jumping in feet first.

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