VoIP & CRM Blog TMC

Yahoo: Search Is Critical for VoIP Marketing

January 18, 2006

Today Yahoo! released results of a survey that points to Internet search as a key tool for consumers looking for a VoIP provider.

I'm interested in knowing more about consumer perceptions of VoIP. Do they really recognize the term "VoIP" or do they think of it as "that cheaper phone service" or "making phone calls over the computer" or what? Do they even really care, as long as it works? I'm not sure that this study has enlightened me much on this question, but Yahoo! Search Marketing was kind enough to give me some additional information about the survey, so I was able to get a little more understanding of the results than was available in the press�release.

Just a note: If you read today's press release, you might be a little confused, as I was at first,�about who actually conducted the survey.�The release says that Yahoo! "today announced key findings" from the survey but that the survey was "commissioned by the National American Testing Organization." The language here�suggests that this testing�organization only paid for the survey but did not conduct it themselves, but in a correction,�a Yahoo! representative tells me that this organization was commissioned by Yahoo! to conduct the survey.

The study�cited was conducted in August 2005 using 302 US adults with high-speed connections�in the�home who are aware of and have shopped for�VoIP services. Its purpose at least in part was�to�explore the role of�Internet Search in the research process for consumers�looking for�VoIP services. Researchers wanted to find out how consumers first heard about VoIP and the information sources they turned to to learn about it. Researchers used a 20-minute online interview.

Yahoo! believes the study reveals that "a multi-channel approach is necessary to drive initial awareness of VoIP services." In explaining how they first found out about VoIP technology, 31% of respondents identified traditional media (including TV, newspapers, magazines, direct mail and radio)�as the primary sources for initial awareness. 28% identified Internet media (banners, provider web sites, search, blogs and telephone web sites)�as primary sources. And interestingly, 19% cited family and friends, indicating a significant role for word-of-mouth marketing in the VoIP space.

The study found that about 67% of those surveyed used Internet search as the main tool for researching VoIP services. According to the release, almost 80% of those who used search said it was "the best source for obtaining information regarding VoIP services" and 66% said they "couldn't make a good decision without it." Keyword search was actually the starting point for 36% of consumers researching VoIP services.

The study indicates that market potential is very strong, at least among consumers�who have heard about VoIP and have researched VoIP services. About 25% of survey respondents�were already VoIP subscribers at the time of the survey, but 23% were uncommitted and�planning to subscribe within a year.

Yahoo! feels the study demonstrates that VoIP advertisers should use multiple channels to build initial awareness of VoIP, but be sure to use a strong Internet presence with ongoing search marketing as a key component. Specific recommendations to advertisers�include: "consider highlighting differences between VoIP and landline on advertising copy and landing pages" and "establish metrics (in addition to CPA [cost per action]) that factor in additional value search can provide (awareness and education)."

Today's release says, "Although Internet Search is prevalent in all stages of the buying cycle, it is strongest as a research and comparison tool where consumers are looking to learn about the technology, discover VoIP brands and as a critical tool in determining differentiation between competitors."

How much are VoIP providers paying per click on Yahoo! Search Marketing? Word is that the top�10 positions�for the keyword "voip" are all higher than�$1.00 per click. The top position is�over $4.00 per click. Expect this to go up!

This survey didn't tell me some�specific things I would like to know�about consumer perceptions of VoIP, but it did confirm the importance of keyword search in Internet research and wayfinding. People like to search!

AB -- 1/18/06




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