A Comprehensive Guide to Pay-Per-Call Lead Generation

Pay-per-call lead generation has become one of the key strategies for businesses seeking to boost customer acquisition in today’s ever-changing digital marketing world. This performance-based method connects marketers with small and medium-sized companies and organisations where direct contact has a significant impact on customer decisions.

Pay-per-call lead generation adds a human component to digital marketing by prioritising phone interactions above clicks and impressions. Advertisers can use sophisticated pay-per-call tracking tools to thoroughly analyse call sources, length, and caller intent before investing in this high-converting strategy. This guide covers the pay-per-call lead generation topic, including its basics, as well as best practices instructing how to start.

What Is Pay-Per-Call Lead Generation?

The technology of pay-per-call lead generation allows the use of various marketing sources to get new leads that are interested in exact goods and services and thus lead prone calls to businesses. With 98% of the UK adult population owning a mobile phone, the potential audience for these marketing campaigns is enormous. According to this performance-based approach, the publisher receives payment from the advertiser for the generated pay-per-call leads that meet certain criteria.

Source: Uswitch

For businesses and sectors like home improvement, insurance, or legal services, where calls bring a bigger number of leads, pay-per-call lead generation might be more effective. The marketer can encourage high-intent clients to call by using pay-per-call marketing. The approach, to put it simply, connects two parties and generates leads that may convert more effectively than some other types of digital advertising.

Call Logic from Phonexa is a useful tool for businesses that use pay-per-call marketing. Businesses may efficiently handle and distribute the leads and obtain useful call data with the aid of call tracking and ping post technologies. Pay-per-call marketing companies can add improvements to their strategies and campaigns for increased conversion rates by providing thorough data on caller behaviour.

How Does Pay-Per-Call Lead Generation Work?

When you use pay-per-call software, every call is tracked to guarantee that it meets specific criteria, including quality and duration, ensuring that advertisers get high-quality leads.

This software is beneficial for advertisers to accurately evaluate the ROI of their campaigns by providing comprehensive analytics on each contact, such as the caller’s location, the duration of the call, and the outcome. 

Are you ready to take control of your pay-per-call lead generation? Select your subscription plan, or book a demo to discover more about Phonexa’s inbound call management platform.

When it comes to lead management, Phonexa’s LMS Sync simplifies the process of managing and distributing pay-per-call leads, increasing marketers’ opportunities for success in the pay-per-call lead-generating arena. It does more than just trace sources and track user journeys; its innovative ping tree technology effectively identifies hidden chances in previously denied pay-per-call leads.

 

Publishers promote the advertiser’s services via numerous channels, and potential clients make calls, which are then logged and analysed for quality. The publisher receives compensation for creating high-quality pay-per-call leads if a call qualifies.

Using a direct connection with interested consumers, the pay-per-call approach helps advertisers by increasing conversion rates. It enables publishers to profit from their promotional activities, creating superior pay-per-call leads.

What Advantages Do Advertisers Get from Pay-Per-Call Lead Generation?

Pay-per-call advertising grants a lot of benefits to advertisers aiming to improve their pay-per-call lead creation and conversion processes. Let’s have a look at the main advantages:

• Greater conversion rates: Pay-per-call leads who initiate the call are often further along in the purchasing process, resulting in greater intent to buy and higher conversion rates than standard digital leads.
• Effective lead generation: Advertisers can pre-qualify each call using particular parameters such as call duration, geographic location, and caller intent. Using a pay-per-call service provider guarantees that advertisers only pay for those leads that match their specific requirements.
• Personalised customer interaction: Pay-per-call advertising enables direct, real-time communication between the customer and the advertiser. Clients become frustrated when they cannot access live help over the phone. Globally, 30% of respondents think it’s the most frustrating aspect of bad customer service.
• Measurable ROI: With detailed statistics on call volumes, call durations, conversion rates, and other crucial parameters, advertisers can effectively quantify the return on investment for their campaigns.

What Advantages Do Publishers Get From Pay-Per-Call Lead Generation for Publishers?

No doubt, publishers play an essential role in the system of pay-per-call lead generation. Their job is to connect advertisers with potential clients using their promotional skills and tools. Let’s have a look at what benefits pay-per-call lead generation can bring to publishers:

• Higher revenue potential: Pay-per-call leads typically generate higher payouts than standard pay-per-click (PPC) models since conversion rates are unusually high, occasionally exceeding 50%, whereas click conversion rates average about 2%.
• Marketing strategy flexibility: Pay-per-call advertisements give SEO, email marketing, social media, and other marketing platforms the ability to generate leads and give them creative freedom at the same time.
• Greater user engagement: To link consumers and marketers, publishers offer pay-per-call services. Publishers can significantly improve user engagement and conversions by producing interesting content. Publishers can convert 42% more visitors into pay-per-call leads by personalising content calls to action (CTAs).
• Improved tracking and optimisation: Using call tracking software, publishers can find out how specific SEO marketing keywords generate high-quality pay-per-call leads. Publishers can focus on SEO and cut down on less effective channels if this is more effective than email marketing or social media advertising.

Top 5 Industries To Use Pay-Per-Call Marketing

Some industries might be more suitable for pay-per-call marketing, as they might be more urgent or complicated, requiring immediate and direct contact. Pay-per-call marketing may not be very profitable for services and goods that are not as urgent, or that can be purchased online with little assistance. In certain industries, the pay-per-call approach works well because of the value of human interaction and the requirement for thorough information.

• Home services: These include locksmith, HVAC, and plumbing services, where customers call for prompt resolutions due to urgent needs. 
• Legal counsel: People are likely to use direct calls to set up sessions when seeking legal assistance on criminal defence or personal injury.
• Financial services: Since customers want personalised guidance on complicated financial products, the mortgage, loan, and insurance sectors profit from direct calls.
• Healthcare: Appointments and consultations require immediate attention, especially in specialised fields like dental services or elective surgery.
• Emergency services: Towing, roadside assistance, and emergency repair services commonly must be solved immediately.

What Differentiates Pay-Per-Call Lead Generation From Other Strategies?

One of the outstanding characteristics of the pay-per-call method is that it sets up immediate and direct connections between customers and companies.  It is especially useful for those services that need quick decision-making or comprehensive consultations.

• Direct interaction vs. digital forms: Unlike digital techniques focused on clicks or form submissions, the pay-per-call strategy creates direct interaction, receiving pay-per-call leads via real phone calls, which shows a higher level of intent.
• Higher intent verification: Pay-per-call leads typically have a higher degree of intent than leads produced by clicking on internet ads. Someone who visits a law office for a consultation is probably more ready to use services than someone who just looks at the website of a law company.
• Quality over quantity: While pay-per-click campaigns and search engine optimisation draw a lot of users to websites, the pay-per-call technique concentrates on drawing a smaller but more involved audience. This method ensures higher conversion rates for specifically targeted services, for instance, healthcare consultations.
• Personalised service: This strategy offers in-depth, personalised interactions that can be adapted to the caller’s needs in real time. This is in contrast to typical email marketing efforts, which do not have this level of customisation.

How To Get Started With Pay-Per-Call Lead Generation

Specify Your Target Audience

Why is it needed?  Firstly, no one wants to spend time, money, and effort on someone who is not interested in your services or product. The second reason is that they feel exactly the same! About 91% of customers will purchase from companies that identify and understand their pain points and thus provide relevant offers.

Your target audience is already looking for you; now, all you have to do is start looking for them. If your company specialises in emergency plumbing repairs for homeowners, your marketing efforts should concentrate on areas with high homeownership rates and emphasise quick, reliable support. This specificity means that your pay-per-call advertising targets those leads who are most likely to convert, optimising your investment and improving campaign performance.

The first step on the list is always identifying the target audience since the knowledge you discover will determine your next actions, from selecting the best keywords to choosing the most successful marketing channels.

Produce Engaging Ads

Knowing who your target audience is will help you customise the ad’s location, style, and message to better appeal to prospective pay-per-call leads and increase the chances that they will call.

Pay-per-call leads will see your ads for the first time, so they need to be convincing enough to make them take action. A brief description of the service or product, its potential benefits to the user, and, to some extent, its advantages over competitors should also be included in an advertisement.

Be persuasive, but don’t overplay with language.  Note that visual components commonly have a major impact on ad engagement. Make use of high-quality photos or graphics that are applicable to the services you offer. The layout should direct your pay-per-call leads towards the main message and call to action, and the design should be attractive without being overbearing.

The call-to-action is when you ask the viewer to make the call. It must stand out and say it all sometimes, prompting with, let’s say, ‘Get in touch today’ or ‘Cal now’. Ensure that the phone number is readable and easily noticeable.

Select the Right Pay-Per-Call Lead Generation Platform

Different platforms have distinct advantages, making them appropriate for various businesses and marketing strategies. Pay-per-call can be more beneficial for banking, healthcare, and insurance companies, where customers frequently prefer phone conversations before making decisions. According to statistics, calls in these businesses have a 10-12 times higher conversion rate than other lead types.

When evaluating pay-per-call platforms, it is critical to consider the channels that produce the best results for pay-per-call campaigns. Options include:

• Paid search.
• Organic search.
• Mobile search.
• Social Media
• Display advertisements.
• Traditional channels (print, radio, etc.)

Each of these channels targets different audience groups and has varying levels of engagement and conversion potential.

Managing and measuring campaign effectiveness is also important when selecting a platform. Pay-per-call programs provide specific insights about industry trends and client behaviour, essential for customising marketing messages and optimising offerings. To maximise their return on investment, businesses should select a platform with powerful analytics and tracking features.

There is no one-size-fits-all approach to determining which platform works best for pay-per-call lead generation. The decision should be based on your target audience, industry and the desired level of involvement. Careful examination of these factors, together with the usage of relevant data and insights, will assist you in choosing the best platform for your pay-per-call lead generation.

Create Budgets and Bid Strategies

Budgets should be planned based on the average cost per lead (CPL) and projected return. Pay-per-call CPLs are greater because these leads have a high intent and conversion rate. This performance-based method charges only for calls that meet specific criteria, such as length or caller location. In the end, this strategy is cost-effective.

The bid strategy must align with your company’s goals and target audience. This includes selecting the appropriate service categories and locations for your advertisements, as well as determining your CPL. Higher bids may result in more pay-per-call leads, but you should weigh your budget and work value. Improve ROI by using real-time analytics to assess campaign success and make necessary changes.

Track and Analyse Results

Monitoring and analysing marketing effectiveness is essential for pay-per-call lead generation, as well as any other marketing campaign you want to enhance or keep doing well. A Nestlé case study illustrates the time-saving benefits of using data tracking and analytics. According to this case, their team reduced marketing reporting time by 80% by using marketing data analytics, freeing up more time for productive tasks.

Pay-per-call campaigns bring better visibility and insights by presenting detailed profiles of the leads and distinct trends in customer behaviour and preferences. The advantage of these insights is that they help to adjust campaign strategy and target exact customers to increase conversion rates. Businesses can ensure they target the correct audience and produce high-quality pay-per-call leads by regularly evaluating and modifying their campaigns. 

How Much Should You Charge for Pay-Per-Call Leads?

When you need to define the pricing for pay-per-call leads, several aspects should be considered, including the industry, competition, and the quality and quantity of your target audience. These factors can have a significant impact on the cost per lead. For example, sectors with greater competition or those that provide high-value services frequently have higher CPL due to the extra effort required to obtain high-quality pay-per-call leads.

The CPL might also significantly vary depending on the industries. Businesses in areas with high job values, such as banking, healthcare, legal, and home services (like plumbing or HVAC), are likely to spend more per lead. In contrast, industries with lower job values, such as windscreen replacement, will likely have lower CPLs. To calculate your CPL, use this simple calculation:

Also, there are various pricing methods for pay-per-call lead generation. Some networks may have set pricing, which is a more rigid method, but others may have different price systems.

To determine the proper rate for pay-per-call leads, we’ll break it down into three steps:

• Measure your industry’s average CPL
• Check the competitive level
• Evaluate the value of the services that you’re advertising

Each company and industry will have unique requirements, so you must adjust your approach accordingly.

Pay-Per-Call Leads vs. Pay-Per-Lead: What To Select?

When selecting between pay-per-call and pay-per-lead marketing, businesses have to analyse their unique requirements, the nature of their industry, the value of their services, and the preferred customer journey.

The table below highlights the most important differences that can help you make a decision:

Aspect	Pay-Per-Call Marketing	Pay-Per-Lead Marketing
Payment Structure	Businesses pay for inbound phone calls from potential clients	Businesses pay for every lead generated, commonly via online actions (e.g. form submissions).
Lead Quality	Leads are of higher quality as potential clients are more intent to buy.	Lead quality differs as leads can be in earlier stages of the buying journey.
Conversion Rates	Higher conversion rates: 25-40% of leads become clients.	Commonly lower conversion rates
Return on Ad Spend	Generally higher; call-based leads are more likely to convert.	Can vary depending on the effectiveness of the digital campaign and lead nurturing.
Customer Value	Call-based customers are likely to spend more and have higher retention rates.	Customer value might be lower
Industry Fit	It is especially effective for service-based industries that require direct interaction.	Suitable for a wider range of industries, mainly where direct interaction is less crucial.
Level of Interaction	Involves direct human interaction.	More dependent on digital actions and less on direct human interaction.

Effective Pay-Per-Call Traffic Sources

Pay-per-call traffic sources help businesses get inbound phone calls from potential customers. These sources are effective because they may target leads that are more likely to convert over the phone. Let’s have a closer look at some of the most popular pay-per-call traffic sources:

➥ Google Ads can be very effective because of its broad reach and ability to target people based on their search intent. When people search for specific services or products, ads targeting those enquiries can encourage them to call.

Advertisers use keywords to target visitors who are likely to make a purchase. For example, someone who is looking for “emergency plumbing services”  most likely needs a plumber immediately, thus making them an ideal candidate for a pay-per-call campaign.

➥ Social media (Facebook, LinkedIn, Instagram) allows advertisers to set up advanced targeting based on demographics, interests, and behaviours, allowing them to reach specific audience groups.

Advertisers can design ads that provide a direct CTA to make a call to a company. For instance,  a Facebook ad for a local dental clinic can target viewers in a specific area, prompting them to contact for an appointment.

➥ SEO directs organic traffic to a company’s website, where potential clients will find a phone number to contact. This method is cost-effective because it relies on unpaid search results.

Businesses that optimise their website for relevant keywords might appear higher in search results, improving their chances of receiving calls. A law practice that optimises for a “personal injury attorney” can attract people looking for legal help in this area.

➥ YouTube’s large user base and the engaging nature of its video content make it an ideal platform for pay-per-call advertising. And its popularity cannot be overestimated. Between 2024 and 2029, the global YouTube user base is predicted to grow by 232.5 million.

Source: Statista

Businesses can use CTA overlays in their videos or in the video description to motivate viewers to call. For example, a tutorial video on house repairs can end with a recommendation to seek expert help.

➥ Traditional channels (radio, print, and direct mail) effectively target local audiences or specific demographics. Advertisements on these channels include a call to action (CTA) and a phone number. A radio commercial for an insurance business may encourage listeners to contact for a free quote.

The success of the traffic sources depends on their power to reach potential customers at different stages of the buying process – from those actively searching for a service to those who may be persuaded to call based on targeted advertising. Combining these channels allows organisations to efficiently drive high-intent calls, resulting in increased conversion rates and ROI.

Compliance in Pay-Per-Call Lead Generation

Compliance in pay-per-call lead generation is primarily related to the adherence to regulations that control consumer privacy and telemarketing. A critical component of this compliance is adhering to the Telephone Consumer Protection Act (TCPA), which requires the explicit consent of individuals before marketing communications via telephone. This legislation guarantees that businesses adhere to consumer privacy and preferences, thereby decreasing the frequency of unsolicited and potentially intrusive marketing calls.

Additionally, companies that generate pay-per-call leads must be vigilant regarding their leads’ quality and source. This means ensuring that the leads are generated ethically and that the marketing practices do not mislead or provide deceptive information to consumers. Failure to follow these compliance standards may lead to legal consequences, such as a tarnished brand image and fines.

Key Features to Optimise Your Pay-Per-Call Lead Generation

Several important elements help improve your pay-per-call leads generation and campaign performance.

They help with the understanding of consumer needs, the customisation of your strategy, and the generation of high-quality pay-per-call leads:

Call tracking & recording	Tracking and recording are important instruments for collecting and analysis of call data. Call recordings are a valuable resource for determining whether a contact resulted in a sale or appointment, as well as for quality control and training. Additionally, they provide useful consumer information.
Call transcriptions	This tool helps you better understand discussions and saves time. Call transcripts can be searched and filtered to find particular conversations or calls that meet predetermined standards.
Call capping	If your buyer has a limit on the number of pay-per-call leads they can purchase, call capping can help. It limits the number of leads that a buyer receives.
Call whispers	This function notifies your buyer that the pay-per-call lead call originated from your campaign. Your client hears a call whispering before answering to prepare for the engagement.
Automated lead tagging	This feature lets you tag call leads and add them to your ad account conversions. It is necessary for real-time campaign optimisation.
Email notifications	Set up email notifications for missed lead calls if the buyer does not respond.

Improve Your Pay-Per-Call Lead Generation With Phonexa

Pay-per-call lead generation is appropriate for industries where personal connections have a significant impact on consumer decisions due to its direct customer involvement and high conversion rates. This approach personalises digital marketing by prioritising voice interactions and allowing advertisers to evaluate call sources, length, and intent closely.

Pay-per-call enhances conversion rates and ensures that marketers only target high-intent per-call leads. Publishers benefit from increased revenues and marketing flexibility. This lead-generation method blends digital accuracy and direct communication to produce a dynamic and effective marketing tool.

 

Get your performance marketing software suite today, or book a demo to learn how Phonexa can help you change your pay-per-call lead generation efforts.

Frequently Asked Questions

Is pay-per-call profitable?

Pay-per-call lead creation is effective for businesses that value personal communication. Pay-per-call leads typically convert better than other lead generation strategies since they target high-intent clients, making them an attractive investment for many companies.

Why use pay-per-call lead generation?

Pay-per-call lead generation helps you increase conversion rates by targeting high-intent clients. Many service-oriented businesses rely on direct contact and personalised communication with potential customers to understand consumer needs and close sales.

What are the advantages and disadvantages of pay-per-call versus commission-based advertising?

Pay-per-call advertising is ideal for businesses that value personalisation due to its high conversion rates and direct client interaction. These leads could be more expensive. Commission-based techniques have lower initial costs and promote success but may lack control and direct client interaction.

How is a call eligible for a commission?

The advertiser determines commissions for pay-per-call advertising. These often include the length of the call, the time and date, the caller’s location, and, on occasion, the call’s outcome, such as a sale or an appointment booking. Missed calls and unrelated questions typically do not qualify for a commission.

Can calls be routed to numerous phone numbers or locations?

Yes, pay-per-call campaigns can direct calls to various numbers or locations. This feature allows additional flexibility when routing incoming calls based on caller location, time, or client preferences. Such routing improves both the customer experience and the efficiency of service responses.

How does the pay-per-call model affect the customer experience?

The customer experience with pay-per-call advertising is often smooth and similar to direct business calls; customers call a company from an ad without realising it is a tracking number. This personalised relationship enhances client engagement and service.

How does a tracking number work?

The tracking number in pay-per-call advertising is a unique phone number assigned to each campaign. Customers that call this number are forwarded to the actual business number, but the system records the call’s origin. This enables precise campaign efficiency tracking and identification of call-generating advertising.