Google’s launch of its Click To Call service in the emerging “Click-to-Call” market is the most potent threat to the telephone companies, many of whom were still back-footed when it came to the threat posed by Skype and its VOIP brethrens. Business consumers form a bulk of the Telcos’ revenue, and Google is smartly aiming for where the juice lies. We all knew of Google’s VOIP foray. It has done so, there is no other way to say it, in true Google fashion.



The PPcall market

The Kelsey Group has estimated that PPCall could be a $1.4 billion market by 2009. Yahoo has already tested its PPCall service. But I think, given Google massive early reach and lead in the Online Advertising market, it will be a real big threat to the telephone companies.





A little while ago, Om Malik had reviewed Microsoft’s Live Messenger which integrates IM with address book, email, and VoIP calling. Though that might be the first ‘next-generation’ IM client, Google has swiftly used the idea and integrated it into its pheneomenal Adsense business.



Now, our favourite advertising medium may also become our favourite communication provider. Maybe, this is the start of what many call as Google’s Digital Services offerings.





How the service works



You click the phone icon, and enter your phone number. Once you click ‘Connect For Free,’ Google calls the number you provided. When you pick up, you hear ringing on the other end, as Google has connected you to the other party. Now, chat freely.



Google has a helpful FAQ page for this service.



What others are saying about the service



Michael Parekh has done a thorough analysis comparing it with the eBay-Skype offering,

...(the) opportunities to extract any kind of pricing for voice communications at all, may be fleeting, like a fistful of sand running through one’s fingers...

Of course, eBay’s monetization of the feature is likely to see paid-search supplemented with transactions, but it’s not clear yet.

I doubt if I can search for “norwalk pizza delivery” and expect an Adwords ad to display local pizzerias in the Norwalk area. That would require the Norwalk pizzeria owners to pay for an Adword ad to do that. Not likely considering the best pizza I like to eat is typically run by a 70-year old Italian guy who probably doesn’t even know how to turn on a computer (but can sure twirl pizza dough!).

...it lacks the ability to display locations on the maps with click-to-call features built in, at lease for now. (If anyone has seen map-based ads with click to call, do let me know!) The new ad-system also allows them to compete with eBay-Skype.