Click-To-Call Advertising Converts To Sales — Especially Among Millennials

Even with 50 percent of calls filtered out as spam, click-to-call revenue is growing at a large rate, says Marchex.

click to call image by marchexBetween 5- and 25 percent of mobile phone calls to a business convert to a sale, according to a Marchex in a report, which forecasts the total market value of click-to-call commerce to attract over $1 trillion by the end of this year.

The Seattle-based click-to-call marketplace and analytics provider also says that the space will be worth $2 trillion by 2019. The report aims to suggest how the industry will arrive at that figure and where the overall business stands right now.

Making The Right Call

Over 24 million phone calls analyzed over the last 18 months were used as a part of Marchex’s survey. The survey was meant to judge the efficacy of click-to-call mobile ads and find the best way to implement them into existing mobile applications.

Marchex acknowledges that the importance of click-to-call advertising is not new to the marketing world. But the aim of the study was to establish data to back up that claim and give marketers a definitive reason to improve their click-to-call models. The results showed that the average conversion rate of a mobile click-to-call ad was four times the rate of the average desktop ad.

Marchex emphasizes that click-to-call advertising is more valuable than a standard call-to-action ad unit that might be reaching customers who are on their laptops on the couch at home and therefore not actively in the position to engage physically with a store. A mobile user, however, might already be out running errands when they are prompted to call. They might even be near whatever establishment they engage with and are more likely to make a physical visit right then.

The study cites another report by BIA/Kelsey in its introduction predicting that there will be 93 billion calls from customers to businesses in 2015 by the end of the year, with a further estimate that that number will increase to 162 billion by 2019 as mobile devices continue to dominate consumers’ digital life.

BIA kelsey click to callCalling The Forecast

While Marchex’s projection that click-to-call spending will top $1 trillion by the end of 2015 and then add double that four years later may sound unbelievable.,But the increase in mobile usage and the directness of click-to-call makes it appealing for both marketers and customers alike. “Click-to-call is literally the connection between the mobile consumer and American businesses for billions of purchases each year”, says Michael Boland, chief analyst at BIA/Kelsey. “Across dozens of industries, more than $1 trillion in consumer expenditures are a direct result of this consumer action.”

Obviously, not every call that a business receives even has the possibility of converting into a sale. In conducting this survey, Marchex filtered out more than 50 percent of analyzed calls as spam. Additionally, some types of services were more likely to receive calls related to sales and products than others. For example, most calls made to a towing company or a hotel are likely to convert directly to a sale, while others like calls to a construction company are less likely to have the same conversion rate.

In an analysis of the demographics attributed to the calls, Marchex found that the majority of callers were young, single, and either did not own a home or were recent homeowners. In other words, Millennials. Young people are the most adept with using smartphones and Marchex claims click-to-call advertising is an effective way of reaching them.

About The Author
Daniel Parisi Daniel Parisi @daniel_parisi_

Daniel Parisi is a New York City-based writer and recent graduate of the University of Maryland. Daniel specializes in coverage of mobile payments, loyalty programs, and the Internet of Things.