For business owners and consumers seeking immediate gratification, paid-search providers bring a new option in advertising – and although the leads are Internet-generated, this one does not even require a Web site!

Welcome to the burgeoning business of pay-per-call.

Slowly introduced to the mass market within the past three years, pay-per-call functions on the same concept as pay-per-click: advertisers compete for positions and set budgets for participation. However, with pay-per-call, ads are connected to a telephone number rather than a Web site. The listing appears in the search results with only cursory information about the business. Each listing is displayed with a unique toll-free phone number that redirects to the advertiser’s actual phone number. The consumer’s next step is simple: call the business.

When the number is dialed, the pay-per-call provider is notified electronically and receives a portion of the ad’s bid amount. Advertisers can track their ad performance through monitoring and reporting data collected by the service provider and alter campaign strategies based on that information.

Although its predecessor, pay-per-click, always will be a critical element of the paid-search industry, pay-per-call is a better fit for many entrepreneurs looking for an extra edge in local search. While major search engines have made significant advancements in connecting local consumers to local businesses, it still requires the maintenance of a Web site. Pay-per-click also cannot qualify click-throughs, so many advertisers end up paying big bucks for window-shopping consumers.

Conversely, when consumers use a phone number and reach a live voice, the end result often is a sale.

Pay-per-call can be especially important for small businesses or start-ups in highly competitive industries and well-saturated markets. For these professionals, service providers and consultants, benefit from Internet marketing only occurs when their limited budgets result in new appointments. Participation for the sake of name recognition and brand awareness often are not part of the strategy.

Since the ad is linked to a phone number not a Web site, the pay-per-call model does place specific obligations on the business, namely ensuring a professional voice waits for that consumer at the other end of the phone. Instead of an Internet presence, the call must now be answered by someone with extensive knowledge of the business and solid interpersonal skills. And since these consumers typically do not prefer or trust leaving a message, the phone must be manned at all times or call hours clearly defined in the ad.

Clearly, there are unique benefits to pay-per-call campaigns. There are also measurable responsibilities. Businesses are smart to remember participation in any paid-search campaign is best defined by experienced search-engine marketing firms that understand how various options can benefits specific industries.

Aaron Wittersheim is president of Whoast Inc., a Chicago based search engine marketing firm. For more information, visit http://www.whoast.com