Jingle Networks, which runs a free 411 service called 1-800-Free411, has raised $26 million in a Series B financing. The round was led by existing investor Liberty Associated Partners. Also participating were existing investors First Round Capital and IDG Ventures Boston, as well as new investor Comcast Interactive Capital.
Our earlier profile of Free411 is here. The service is a free alternative to $1-$2 directory calls. The catch? You have to listen to a 12 second advertisement.
It works mostly like normal directory assistance. You dial their phone number and go through an automated system that asks for the location, type of listing and listing name. While you are waiting for the number, you must listen to a 12 second advertisement from a competitor to the service. If you choose to use the competitor instead, you simply dial “1″ to redirect your call.
Another difference is that if there is no local advertiser for the business type you have requested, the business receiving the call hears a short message at the beginning of the call telling them that the call is via Free-411. A tele-sales group follows up with the business to try to get them to advertise. Free-411 claims a 13% success rate in converting businesses to advertisers.
And they are seeing explosive growth. Free411 is now handling 7 million calls per month – out of a total of 500 million directory assistance calls per month in the U.S. That’s about 1.5% of the total market. Investor Josh Kopelman from First Round Capital has another way of looking at it: “1-800-FREE411 has the potential to shrink an $8 billion market.”
Why does the ad necessarily have to be a competitor? 411-SAVE just plays some related ad, competitive or not. The advertisers just pick their keywords. Simple.
Sure, although the goal (when free411 gets paid) is to get you to press “1″ and go to that number instead. I’m unlikely to go for something other than what I’m looking for.
These are impressive numbers. The market is definitely large and I am sure people will be willing to listen to relevant ads to save a buck or two. However, how defensible is it – can competing services be launched with ease? what will be the differentiating factors that will give any one of them a lead? I would be surprised if Google or Yahoo do not get into this sooner or later.
I prefer 1-800-411-Metro. They have live operators and the ads seem to be much more relevant. In fact, I’ve even choosen the ad over my original number a couple of times. Jingle didn’t really do it for me.
How do they expect to advertise to the masses to make this profitable. The amount of financing raised is tiny for a firm that has a fairly large potential. Am I missing something?
I just called it and got a message saying that they were at capacity and for me to call back later. Not exactly a confidence builder…
Uh, didn’t TellMe do this a long time ago? They also provided a lot more than just 411 information.
whatsoever, companies like this are good. They have something valuable to offer.
As cell and web converge who’s going to dial a “1-800″ number. I can’t think of the last time I called 411 from my home phone. If I’m looking for a number at home I just put it into google. It’s much easier than dealing with a ding-bat operator who get’s irate as I go through the spelling permutations. The always-on cell-search engine is just around the corner.
Written info is much easier to read than audio info is to listen to. When was the last time any of you used 1-800-MOVIEFONE.
Written info is much easier to read than audio info is to listen to. When was the last time any of you used 1-800-MOVIEFONE.
Look for a major search enGine to release a similar service in the near future. As for the utility of these services, I agree with “Ben” — I don’t use these silly 411 voice dialing services any more. I have a web browser on my phone and I can find a number faster there, without silly ads playing in my ear.
“I have a web browser on my phone and I can find a number faster there”
Are you joking? I can find a number through one of these 411 or 800 numbers faster than you can even fire up your phone browser.
Fact is, these services fill a gap opened by greedy telecoms charging $1-3 for a 411 call.
Quoted from above: “As cell and web converge who’s going to dial a “1-800″ number.”
Look, I’m living today and need solutions for ‘today’. We all know convergence is happening but c’mon, voice has always been the most convenient platform for local search and I don’t see that changing for awhile. Especially as new voice-search solutions come to bear that don’t force me to type while rolling down the 101.