October 10, 2006

Microsoft has inked a deal with Ingenio to offer pay-per-call listings into Mobile Live Search. However, unlike the other two programs already offered, this isn't being launched in any beta version.

Overall, Ingenio's advertisers are the only paid listings that will appear when users conduct a geotargeted search on Windows Live for mobile.

Only one advertiser will show for any given search and Ingenio's entire inventory will be funneled into Windows Live.

When there are no relevant Ingenio ads available, no sponsored listings will appear.

Ingenio already has existing mobile distribution deals through Jingle Networks' 1-800-Free-411 and go2.com.

Since Ingenio announced its first deal with AOL over a year ago, it has been steadily building distribution channels with smaller players in the local market.

This is obviously a very important relationship and could be a prelude to an even broader deal with Microsoft.

However, Ingenio wouldn't comment on that possibility. Microsoft currently offers "call for free" click-to-call functionality on Live Local.

All three dominant search providers have now started their own versions of advertising programs for the mobile market.

Expect to see a continuing acceleration of product development, and fierce competition in the wireless space.

Early evidence of this argues that response rates of clicks to calls in a wireless environment will be much higher than clicks on sponsored listings online, simply because there are fewer competing advertisers.

Add to that the fact that average users' needs are typically more immediate than the online community.

While the number of users conducting searches in a mobile environment is currently a very small fraction of what it is on the Internet, mobile search will still be a significant channel in the next several years as the user experience drastically improves.

Source: SEW Blog