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John Melideo, CEO of Jambo, says the online ad seller wants to be for local search what Google is for national search. With Jambo, such small companies as furniture importer Bohac Home, can place Internet ads that are pay-per-call ads modeled after popular pay-per-click appeals. With Jambo, buyers and sellers can more easily communicate by phone because pay-per-call ads pop up beside search results and include a phone number for the advertiser instead of a Web link or an Internet address. Jambo assigns a local number, which Melideo says is more appealing to customers than an 800 number. Jambo routes calls to merchants, who usually pay per call. Pay-per-call also seems to get around click fraud and could be more attractive than conventional Web ads to customers who do not want Windows NT to share personal and credit card information online. The response rate for phone-based ads is 8%, as compared to 3% for pay-per-click ads, according to Kelsey Group, which forecasts revenue from pay-per-call ads at a possible $4 billion by 2009, up from zero in 2005. Jambo plans to offer marketers information regarding callers, including name, zip code, and approximate price paid for their home, and Melideo also says car dealers who get a call through an online ad can obtain information about the caller's auto ownership and driving history. Phone companies, including Verizon, are also offering pay-per-call ads, and Google started testing a pay-per-call service in 2005.
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