What Are the Differences Between Pay-Per-Call and Pay-Per-Click?
What Are the Differences Between Pay-Per-Call and Pay-Per-Click?
Performance-based advertising is a powerful tool for businesses wanting to increase their investment return. Two popular strategies in this space are Pay-per-Call (PPCall) and Pay-per-Click (PPC). While both methods are highly effective, they respond to different goals and audiences, making it essential to understand their specific advantages.
In this post, we’ll explore the main differences between these two advertising models, helping you decide which one aligns best with your business goals.
What is Pay Per Call
Pay-per-call (PPCall) is a performance-based advertising model where advertisers pay for each qualified inbound phone call generated by their campaigns. This model ensures that businesses only pay for leads that show genuine interest, as phone calls often signal a higher intent to purchase or engage compared to other forms of interaction.
What Marketing Channels and Tactics Work Best for Pay-per-call?
Pay-per-call marketing performs well by using both digital and traditional channels to connect businesses with potential customers through direct phone interactions. Effective channels and tactics include:
Paid Search Advertising: Using platforms like Google Ads to target specific keywords, enabling ads to appear in search results and encouraging users to call directly.
Mobile Search Optimization: Designing campaigns for mobile users, incorporating click-to-call features that facilitate immediate connections.
Social Media Advertising: Applying targeted ads on platforms such as Facebook, Instagram, and TikTok to reach specific demographics and prompt calls.
Display Advertising: Placing banner ads on relevant websites with clear calls-to-action, encouraging viewers to initiate a call.
Email Marketing: Sending targeted emails with persuasive content and direct call options to engage recipients.
Benefits of Using Pay-Per-Call
Pay-Per-Call offers special benefits that make it different from other advertising models. By focusing on qualified phone calls, businesses can connect directly with potential customers who are ready to act. Here are the top benefits of this model:
High-Quality Leads: Phone calls often indicate strong purchase intent, leading to higher conversion rates compared to other lead generation methods.
Cost-Effectiveness: With Pay-Per-Call, advertisers pay only for qualified calls, ensuring that every dollar spent contributes to genuine leads. This increases the return on investment (ROI) and eliminates wasted spending.
Better Customer Service: Businesses can talk to customers on the phone and solve their problems right away. This helps customers feel more confident and loyal.
How Does It Work?
A customer researching local HVAC services finds a Pay-Per-Call ad online. Instead of filling out a form, they call directly to inquire about available appointment times. The business pays for the qualified call and secures a booking, generating revenue from the interaction.
What is Pay Per Click
Pay-Per-Click (PPC) is a type of advertising where companies pay a fee every time someone clicks on their advertisement. This approach allows advertisers to purchase visits to their websites rather than depend on organic traffic.
What Marketing Channels and Tactics Work Best for Pay-per-click?
Pay-Per-Click (PPC) advertising is a versatile digital marketing strategy that allows businesses to reach targeted audiences across various platforms. Effective channels and tactics include:
Google Ads: As the most popular PPC platform globally, Google Ads facilitates advertisers to display ads on search results pages, targeting users based on specific keywords.
Facebook Ads: Uses user demographic and interest data to deliver targeted ads within the Facebook ecosystem.
Instagram Ads: Offers visually engaging ad formats to reach users on the Instagram platform.
LinkedIn Ads: Ideal for B2B marketing, allowing targeting based on professional demographics.
TikTok Ads: Provides access to a younger demographic with short-form video ads.
Google Display Network: facilitates ads to appear on a vast network of websites, reaching users as they browse online.
Benefits of Pay-Per-Click
Pay-Per-Click provides benefits that make it an essential tool for businesses seeking to expand their online presence. Here are the top benefits of this model:
Cost Control: PPC campaigns allow advertisers to set their budgets, ensuring they spend only what aligns with their financial goals. This flexibility makes PPC accessible to businesses of all sizes.
Precise Targeting: Advertisers can target their ideal audience based on factors such as demographics, location, and even specific search behaviors.
Actionable Insights: PPC platforms offer in-depth analytics, allow businesses to measure performance metrics like click-through rates, conversion rates, and return on investment (ROI).
How Does It Work?
An online fitness coach runs a Facebook Ads campaign targeting people interested in health and wellness. A user clicks on the ad, which directs them to a sign-up page for a free consultation. The advertiser pays for the click, regardless of whether the user books the consultation.
How Pay Per Call Differs from Pay Per Click
When deciding between Pay-Per-Call (PPCall) and Pay-Per-Click (PPC), it’s important to understand how these models differ in their approach to customer interaction, cost, and overall effectiveness. Here is a breakdown of their key differences:
1. Customer Interaction
Pay-Per-Call: Focuses on direct engagement. Customers call businesses directly, allowing for immediate dialogue and personalized support.
Pay-Per-Click: Interaction begins digitally. Users click on ads to visit websites, where they may explore and engage at their own pace, often resulting in a longer sales process.
2. Conversion Rates
Pay-Per-Call: Boasts higher conversion rates because phone calls often indicate strong purchase intent. Businesses can address customer needs in real time, increasing the likelihood of closing a sale.
Pay-Per-Click: Conversion rates can be lower, as users may click on ads out of curiosity rather than intent to purchase.
3. Cost Structure
Pay-Per-Call: Businesses pay for qualified inbound calls, often at a higher rate per unit. However, the strong conversion potential often makes it more cost-effective in the long run.
Pay-Per-Click: Advertisers pay for every click, regardless of whether the user converts. This can lead to wasted ad spend if the traffic isn’t relevant.
4. Target Audience
Pay-Per-Call: Works best for businesses requiring immediate customer action, such as those in local or service-based industries like plumbing, legal advice, or insurance.
Pay-Per-Click: Ideal for businesses aiming to boost online visibility or sell products that don’t require direct consultation, such as e-commerce or software subscriptions.
5. Measurement and Analytics
Pay-Per-Call: Success is measured by metrics such as call volume, duration, and conversion rates from calls. Advanced tools track which ads generate high-quality leads.
Pay-Per-Click: Platforms provide detailed metrics like click-through rates, cost-per-click, and conversion data, making it easier to track user behavior on websites and optimize campaigns.
Pay-Per-Call Marketing vs Pay-Per-Click Marketing: A Detailed Comparison With Examples
Choosing between Pay-Per-Call (PPCall) and Pay-Per-Click (PPC) isn’t just about understanding the differences—it’s about identifying which model delivers the best results for your business.
1. Conversion Rates: Why Direct Interactions Matter
When customers pick up the phone to call a business, they are often ready to make a decision or take action. This leads to higher conversion rates in Pay-Per-Call campaigns compared to PPC.
For example, a law firm running a PPCall campaign might see conversion rates of 40% from calls, while the same firm running PPC ads targeting "legal consultation services" may only achieve a 3% conversion rate from clicks. The direct, immediate interaction provided by PPCall gives it an additional advantage in industries where trust and communication are key.
2. Cost Efficiency: Comparing Value Over Volume
While PPCall typically involves a higher cost per interaction, the return on investment can be more favorable due to its higher conversion rates. Consider this:
PPC Example: A dental clinic runs PPC ads targeting “teeth whitening services.” They generate 200 clicks at $2 each, totaling $400. With a 3% conversion rate, only 6 appointments are booked, resulting in a cost of $67 per appointment.
PPCall Example: The same clinic uses PPCall ads to promote phone consultations. They receive 50 calls at $10 each, totaling $500. With a 50% conversion rate, 25 appointments are secured, reducing the cost per appointment to $20.
Deciding Between PPC and Pay-Per-Call for Your Business
Selecting the right advertising model for your business—Pay-Per-Click (PPC) or Pay-Per-Call (PPCall)—requires a clear understanding of your goals, audience, and the nature of your services. Each model caters to distinct business needs, so your choice should align with your priorities.
When to Choose Pay-Per-Call
Selecting the right advertising model for your business—Pay-Per-Click (PPC) or Pay-Per-Call (PPCall)—requires a clear understanding of your goals, audience, and the nature of your services. Each model responds to distinct business needs, so your choice should align with your priorities.
When to Choose Pay Per Call?
Consider this model if:
Your industry requires direct customer engagement. Examples include legal consultations, medical services, or financial advising, where personalized discussions are crucial.
You give service to local customers. PPCall is particularly effective for businesses like home services or repair providers that operate in specific geographic areas.
Your customers need immediate assistance. For services such as emergency plumbing or roadside assistance, phone calls often lead to instant conversions.
When to Choose Pay-Per-Click
This model is suitable if:
You plan to generate website traffic. PPC drives clicks to your website, making it a powerful tool for e-commerce or lead-capture pages.
Your product or service doesn’t require a phone call. SaaS subscriptions, online courses, or retail items often convert effectively through digital interactions.
You want detailed audience targeting. PPC platforms like Google Ads and Facebook Ads allow you to reach specific demographics with pinpoint precision.
Combining Both Models for Maximum Impact
For many businesses, integrating PPC and PPCall can provide the best of both worlds. For example:
Use a PPC ad to drive traffic to a landing page with a prominent call-to-action button and a phone number for immediate inquiries.
Combine PPC campaigns for broad awareness with PPCall campaigns targeting high-intent leads in your local area.
This dual approach ensures you capture a wide audience while still focusing on qualified leads.
Choose Strategies That Deliver Real Results With UNIK360
If you're finding it hard to spend your marketing budget effectively, the real question isn't PPC vs. PPCall, it’s how to attract leads that truly convert. By understanding what your audience values most, convenience or personal interaction, you can invest in strategies that deliver results and avoid wasting money on clicks or calls that don't lead to sales.
If Pay-Per-Call is your preferred strategy to succeed, UNIK360 offers everything you need to run profitable Pay-Per-Call campaigns. From tools to expert guidance, we ensure your campaigns drive high-value leads and real results.
Ready to start? Contact UNIK360 today and see how we can transform your advertising strategy!
Frequently Asked Questions (FAQs) About Pay Per Call vs Pay Per Click
How Do Costs Compare Between Pay-per-call and Pay-per-click?
Pay-Per-Call typically has a higher upfront cost per interaction since advertisers pay for qualified phone calls, which often leads to conversions. However, the higher conversion rates can make it more cost-effective overall.
Pay-Per-Click, on the other hand, charges for every click, regardless of whether the visitor converts, which can lead to lower-quality leads and potentially wasted spending if not carefully managed.
Can PPC and Pay Per Call be used together?
Absolutely! PPC and Pay-Per-Call complement each other by targeting different stages of the customer journey. For example, PPC can attract users who are browsing online for solutions, while Pay Per Call focuses on those ready to take immediate action. By using both strategies, businesses can maximize visibility and capture a mix of exploratory clicks and high-intent calls, ensuring no lead goes ignored.
How Does PPC and Pay Per Call Engage Customers Differently?
Pay-Per-Call encourages immediate, direct engagement through phone conversations, allowing businesses to address customer needs on the spot. This personalized approach often builds trust and leads to quicker decisions.
Pay-Per-Click, meanwhile, starts with digital engagement, giving customers time to explore products or services independently. This can work well for businesses where customers prefer self-service options or need more time to decide.
