Pay per call is a type of online advertising that connects your business with search engine consumers over the phone. It is not necessary for your company to have a website -- these ads drive the business directly to your phone line. When managed correctly, pay per call advertisements can be a very effective tool for generating business leads that have a relatively successful conversion rate. Similarly to pay-per-click advertising, companies must bid on certain keywords in order to receive top advertising space. Companies must also choose from a preset group of categories and a geographical location for the advertisement. The company doesn't pay for the ad until someone clicks on it. The click can either directly connect consumers with a company representative over the Internet, or it may ask for a phone number. While the pay per call method of advertising can be very advantageous for companies, it also has its downsides.

Pros of Pay Per Call Advertising. The biggest advantage of pay per call advertising is that your business is connected with people who are typically close to buying -- if a person calls into your business, odds are they have significant interest in one of your products. This results in a remarkably high rate of conversion. You can effectively track conversion rates when you utilize pay per call advertising. Determining how much generated traffic results in conversion is more difficult through organic search engine marketing and pay-per-click advertising. Never underestimate the value of human interaction. Rather than relying on a website to generate genuine interest and action, pay per call advertising allows businesses to personally connect with consumers. By having trained salespeople on the receiving end of the call, your business differentiates from the competition.

Cons of Pay Per Call Advertising. Cost is one of the main drawbacks to a pay per call advertising strategy. Compared to pay-per-click ads, pay per call ads can cost a company more money. The volume directed to your business is typically lower than that of pay-per-click advertisements, as well. Part of the bidding process requires you to identify your business into a preset list of categories. The problem with these categories is that they can sometimes be too general. If your business does not fall distinctly into one of these categories, you must make the next best decision. When your advertisement displays, the listed number is toll free and reroutes the phone call to your business. This is designed so that people must actually click on the ad, as opposed to simply calling the business first. Some consumers may consider this a deceptive tactic.

As with most methods of paid advertising, pay per call ads have advantages and disadvantages. Although the cost per call can be pricey, the tradeoff lies in the fact that these consumers are more likely to do business with you. Putting consumers in touch directly with sales representatives also adds a nice personal touch to your advertising campaign. When deciding whether or not the pay per call advertising method is right for your business, make sure you are fully aware of the pros and cons that accompany it.