VoIP is a new mantra for startup. VoIP companies are in race for offering almost free calls to subscribers. I shall not be surprised if a new startup comes up with an idea of offering complete free calls to non-VoIP phones supported by advertisements, something similar to free ISP model with advertisements. Say Alice is calling Bob and before the call is connected, Alice is targeted with voice advertisement. BTW, this is not a VoIP spam but customer chosen way of making free phone calls and if reasonably controlled, it could be acceptable.
Business model is workable. Let’s look at Google AdWords that charges minimum 1 cent per click (average charges are much higher - practically 10 cents per effective click). VoIP advertisement can definitely fetch comparable or more. Infrastructure and running expenses of VoIP are not high; consider the fact that Yahoo and many other VoIP providers charge 1 cent per minute for US calls. Key here is to maintain a good ratio of advertisement vs. call length.
There are several possibilities to maintain a good ratio, the length of each call can be limited OR can be made proportional to the length of advertisements a user has listened to in the past. Some kind of credit system is possible. Random length advertisement can ensure that the user does not automatises advertisement skipping.
There are many possibilities – one is context specific or targeted advertisements (think of gmail). While targeted advertisement cannot be placed in the current call, it is always possible to place them in next call(s). Say Alice is talking to Bob about buying a new camera; this information can be used by system to target Alice with the camera advertisement next time Alice is making a call. An advertisement based on calling pattern is another possibility. Off course, privacy could be a concern however, it might be possible to address it. The targeted advertisement and various relevant deals can also be sent to user’s voice mail or email if user opted for it.
VOIP companies are flooding the market & investors are looking for ideas in VoIP space. Possibly someone may find this idea interesting enough to fund, check out Jeff’s call for innovation in VoIP
Lenworth Nelson
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