Comments on: 1-800-Free-411 Has 6% Market Share of U.S. Mobile 411 Market http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/ Startup and Tech News Fri, 16 May 2008 10:42:58 +0000 http://wordpress.org/?v=2.3.3 By: 2008: Web 2.0 Companies I Couldn’t Live Without http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1894097 2008: Web 2.0 Companies I Couldn’t Live Without Wed, 02 Jan 2008 04:09:53 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1894097 [...] avoid per call charges of up to $3.50 that cell phone carriers charge. They have taken more than 6% of the market for directory service calls in the U.S. over the last two years. Google, Microsoft, AT&T and [...] […] avoid per call charges of up to $3.50 that cell phone carriers charge. They have taken more than 6% of the market for directory service calls in the U.S. over the last two years. Google, Microsoft, AT&T and […]

]]> By: Google Launches Free 411 Service http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1484829 Google Launches Free 411 Service Thu, 05 Jul 2007 18:17:09 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1484829 [...] product competes head on with Jingle Networks, which has taken 6% market share in the U.S. 411 business over the last year. AT&T is also experimenting with free 411 calls. [...] […] product competes head on with Jingle Networks, which has taken 6% market share in the U.S. 411 business over the last year. AT&T is also experimenting with free 411 calls. […]

]]> By: Jingle Awarded Patent For Advertising-Supported 411 Calls http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1484818 Jingle Awarded Patent For Advertising-Supported 411 Calls Thu, 05 Jul 2007 18:04:41 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1484818 [...] When we last heard from the company, they claimed to be receiving 17 million monthly calls and had grabbed over 6% of the U.S. market for directory assistance calls. [...] […] When we last heard from the company, they claimed to be receiving 17 million monthly calls and had grabbed over 6% of the U.S. market for directory assistance calls. […]

]]> By: Ajax Girl http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1318223 Ajax Girl Sat, 07 Apr 2007 01:00:56 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1318223 [...] product competes head on with Jingle Networks, which has taken 6% market share in the U.S. 411 business over the last year. AT&T is also experimenting with free 411 calls. [...] […] product competes head on with Jingle Networks, which has taken 6% market share in the U.S. 411 business over the last year. AT&T is also experimenting with free 411 calls. […]

]]> By: MobileCrunch » Google Clones Free 411 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1318175 MobileCrunch » Google Clones Free 411 Sat, 07 Apr 2007 00:22:27 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1318175 [...] reached at 1-800-GOOG-411 (1-800-466-4411) from any phone. Unlike Free411, which already has over 6% market share, it is not currently ad supported. However, as the platform evolves, a pairing with Google’s [...] […] reached at 1-800-GOOG-411 (1-800-466-4411) from any phone. Unlike Free411, which already has over 6% market share, it is not currently ad supported. However, as the platform evolves, a pairing with Google’s […]

]]> By: Profitcode Biz Blog » Free 411 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1304584 Profitcode Biz Blog » Free 411 Sat, 31 Mar 2007 22:04:16 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1304584 [...] that you listen to a few sponsor ads while they are “finding that number for you”. :+ TechCrunch Posted inUncategorizedMarch 15th, [...] […] that you listen to a few sponsor ads while they are “finding that number for you”. :+ TechCrunch Posted inUncategorizedMarch 15th, […]

]]> By: BowRiverBrown http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1257363 BowRiverBrown Wed, 21 Mar 2007 17:29:23 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1257363 Insider, the fact that 1-800-FREE411 has created a new media channel that consumers are flocking to shifts the burden of reaching these consumers to advertisers. Until FREE411 came around, merchants and business owners were getting "inbound phone leads" for free from traditional 411 services. Problem is, the consumer was paying for the call and now the consumer has decided emphatically that they REFUSE to pay for 411, as seen by the phenomenal growth of 1-800-FREE411's service and others. As the traffic on traditional 411 begins to decline, merchants and business owners who used to get all those free calls from regular 411 are now going to have to pay to be listed on the free services. Which makes perfect sense...where else do you see consumers paying to find businesses? It's the other way around: businesses pay to find consumers. And here's the kicker, and one that lends major credibility to the business model. 1-800-FREE411 just announced "category search" or "yellow pages search" which means now people can call for "a dry cleaner near the Empire State Building" rather than having to ask for a dry cleaner by name. You can bet that dry cleaning businesses near the Empire State Building would want their business to be listed. And they'll bid just like paid search to be listed toward the top. The cost per connection to a business in pay-per-call is upwards of $2, and the "connection rate" for a category search query will be nearly 100%. That certainly makes the cost per call of $0.12 look very cheap. Nice margins. Obviously, a big key to turning a profit for companies in this space will be if the mix of calls shifts toward bid-based models like yellow pages search. Running the math, it would not require an unreasonably high percentage of yellow page search calls with +90% connection rates and $2 per connection to turn a profit. I applaud what 1-800-FREE411 is trying to do and I wish them success. They are certainly doing the consumer a big favor, and they are presenting a compelling, highly targeted new channel for local and national advertisers. Insider, the fact that 1-800-FREE411 has created a new media channel that consumers are flocking to shifts the burden of reaching these consumers to advertisers. Until FREE411 came around, merchants and business owners were getting “inbound phone leads” for free from traditional 411 services. Problem is, the consumer was paying for the call and now the consumer has decided emphatically that they REFUSE to pay for 411, as seen by the phenomenal growth of 1-800-FREE411’s service and others. As the traffic on traditional 411 begins to decline, merchants and business owners who used to get all those free calls from regular 411 are now going to have to pay to be listed on the free services. Which makes perfect sense…where else do you see consumers paying to find businesses? It’s the other way around: businesses pay to find consumers.
And here’s the kicker, and one that lends major credibility to the business model. 1-800-FREE411 just announced “category search” or “yellow pages search” which means now people can call for “a dry cleaner near the Empire State Building” rather than having to ask for a dry cleaner by name. You can bet that dry cleaning businesses near the Empire State Building would want their business to be listed. And they’ll bid just like paid search to be listed toward the top. The cost per connection to a business in pay-per-call is upwards of $2, and the “connection rate” for a category search query will be nearly 100%. That certainly makes the cost per call of $0.12 look very cheap. Nice margins.
Obviously, a big key to turning a profit for companies in this space will be if the mix of calls shifts toward bid-based models like yellow pages search. Running the math, it would not require an unreasonably high percentage of yellow page search calls with +90% connection rates and $2 per connection to turn a profit.
I applaud what 1-800-FREE411 is trying to do and I wish them success. They are certainly doing the consumer a big favor, and they are presenting a compelling, highly targeted new channel for local and national advertisers.

]]> By: Dutch http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1234386 Dutch Sat, 17 Mar 2007 00:48:32 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1234386 Their circuts are busy a lot and the voice recognition lady never understand moi Their circuts are busy a lot and the voice recognition lady never understand moi

]]> By: NeoTechie http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1233634 NeoTechie Fri, 16 Mar 2007 21:16:31 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1233634 This a great service. Free is GOOD! This a great service. Free is GOOD!

]]> By: Colin http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1233163 Colin Fri, 16 Mar 2007 18:53:22 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1233163 This is very interesting. I stopped by Il Fornaio this morning as I often do for a scone and cappuccino and on my way out I had to do a double take. Sitting across the way were who looked like Jingle's CEO Garrick and Tellme's CEO McCue. They seemed to be talking emphatically. Given that TellMe has just been bought up by MS, I'm trying to figure out what's going on with these two. This is very interesting. I stopped by Il Fornaio this morning as I often do for a scone and cappuccino and on my way out I had to do a double take. Sitting across the way were who looked like Jingle’s CEO Garrick and Tellme’s CEO McCue. They seemed to be talking emphatically. Given that TellMe has just been bought up by MS, I’m trying to figure out what’s going on with these two.

]]> By: MGS4 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1231050 MGS4 Fri, 16 Mar 2007 09:02:25 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1231050 Nag - thanks, I had forgotten 1videoconference. I added them to the post. DimDim is also open source. http://www.mp4-converter.net Nag - thanks, I had forgotten 1videoconference. I added them to the post. DimDim is also open source. http://www.mp4-converter.net

]]> By: Austin Cassidy http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1230656 Austin Cassidy Fri, 16 Mar 2007 06:26:07 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1230656 Maybe they could ad some premium services to it... like "for 10 cents we'll connect you directly to the number." Maybe they could ad some premium services to it… like “for 10 cents we’ll connect you directly to the number.”

]]> By: anthropocentric http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1230590 anthropocentric Fri, 16 Mar 2007 06:05:21 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1230590 I agree with other posters that Google or Yahoo or some other company will buy them out for 1) the potential for owning a new ad channel and 2) the goodwill that the company has created. Right now, Google is leaning towards EVIL and they could use a shot in the arm like Free411 - a service that makes just about everyone smile when they learn about it. I agree with other posters that Google or Yahoo or some other company will buy them out for 1) the potential for owning a new ad channel and 2) the goodwill that the company has created.

Right now, Google is leaning towards EVIL and they could use a shot in the arm like Free411 - a service that makes just about everyone smile when they learn about it.

]]> By: Sunny http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229702 Sunny Fri, 16 Mar 2007 01:03:05 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229702 I think I called it and I got a dirty phone ad. Those ads are annoying especially when you havea girl next to you so I discontinued using them. I think I called it and I got a dirty phone ad. Those ads are annoying especially when you havea girl next to you so I discontinued using them.

]]> By: Drama 2.0 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229660 Drama 2.0 Fri, 16 Mar 2007 00:50:55 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229660 Thanks for the info. I'm always amused when a CEO justifies his information by saying "Some Analysis Firm project that by 2010, the widget industry will be worth $20 billion in the United States alone, up from $100 million today." The comparison to PPC is interesting, but two points: - Tracking ROI on these types of audio ads would seem to be very difficult. If your audio ad is playing before a caller is given the phone number that they're looking up, how exactly does an advertiser track that business was gained from the audio ads? One of the great things about PPC is that you can monitor clicks and use cookies or sessions to track the conversion ratios down to a campaign-by-campaign basis. I think the rise in PPC prices might be attributable to the fact that you can accurately track ROI on this level. - PPC, as a model, has some flaws so I wouldn't necessarily call it, or the growth it's seen, sustainable. Click fraud remains a major issue of debate, and I've heard some reports that smaller advertisers are being pushed out because the ad spends of major advertisers are driving the costs too high for the small fries. Thanks for the info. I’m always amused when a CEO justifies his information by saying “Some Analysis Firm project that by 2010, the widget industry will be worth $20 billion in the United States alone, up from $100 million today.”

The comparison to PPC is interesting, but two points:

- Tracking ROI on these types of audio ads would seem to be very difficult. If your audio ad is playing before a caller is given the phone number that they’re looking up, how exactly does an advertiser track that business was gained from the audio ads? One of the great things about PPC is that you can monitor clicks and use cookies or sessions to track the conversion ratios down to a campaign-by-campaign basis. I think the rise in PPC prices might be attributable to the fact that you can accurately track ROI on this level.
- PPC, as a model, has some flaws so I wouldn’t necessarily call it, or the growth it’s seen, sustainable. Click fraud remains a major issue of debate, and I’ve heard some reports that smaller advertisers are being pushed out because the ad spends of major advertisers are driving the costs too high for the small fries.

]]> By: Chad http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229594 Chad Fri, 16 Mar 2007 00:31:44 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229594 Who knows what their CEO is basing the $0.50 prediction on? Maybe he has good market research or maybe he is pulling it out of his a#*&. But if PPClick price increases offer any historical insight, then the current $0.20 PPCall should definately increase considering audio ads idea is currently bleeding edge idea. Of course this all assumes audio ads continue to be tolerated by the caller - it this is true the marketing budget allocation for audio ads will only increase, and thus drive prices up. Insider: Can you offer a reference to the figures you provided? Who knows what their CEO is basing the $0.50 prediction on? Maybe he has good market research or maybe he is pulling it out of his a#*&. But if PPClick price increases offer any historical insight, then the current $0.20 PPCall should definately increase considering audio ads idea is currently bleeding edge idea. Of course this all assumes audio ads continue to be tolerated by the caller - it this is true the marketing budget allocation for audio ads will only increase, and thus drive prices up.

Insider: Can you offer a reference to the figures you provided?

]]> By: Drama 2.0 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229392 Drama 2.0 Thu, 15 Mar 2007 23:36:05 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229392 Chad: what does he base the "revenue will approach $0.50 per call as the market matures" statement on? I'd be interested to know, if only because so many failed businesses have been built around projections made by market analysts that never materialize (or materialize far slower than expected). Chad: what does he base the “revenue will approach $0.50 per call as the market matures” statement on? I’d be interested to know, if only because so many failed businesses have been built around projections made by market analysts that never materialize (or materialize far slower than expected).

]]> By: Anthony Barba http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229306 Anthony Barba Thu, 15 Mar 2007 23:07:57 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229306 Interesting this come out a day after Microsoft to Acquire Tellme. Interesting this come out a day after Microsoft to Acquire Tellme.

]]> By: Andrew http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229243 Andrew Thu, 15 Mar 2007 22:53:08 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229243 google is gonna buy them, just watch. google is gonna buy them, just watch.

]]> By: Chad http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229146 Chad Thu, 15 Mar 2007 22:30:03 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229146 Insider?, where do you get these figures? "the dirty secret of Free 411 is that their revenues are only $0.02/call on costs of $0.12/call. Losing $0.10/call * 600,000 calls = $60,000 of losses/day. " My info from Oct 2006 interview with free411 CEO was revenue of $0.20 per call and costs around $0.25. Still losing $, but he says revenue will approach $0.50 per call as market matures. Insider?, where do you get these figures? “the dirty secret of Free 411 is that their revenues are only $0.02/call on costs of $0.12/call. Losing $0.10/call * 600,000 calls = $60,000 of losses/day. ”

My info from Oct 2006 interview with free411 CEO was revenue of $0.20 per call and costs around $0.25. Still losing $, but he says revenue will approach $0.50 per call as market matures.

]]> By: Drama 2.0 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229074 Drama 2.0 Thu, 15 Mar 2007 22:07:50 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229074 Kean: exactly. There's no apparent barrier to entry here besides capital. It has taken a significant amount of capital to get to 6% and now major players, like AT&T, can fairly easily decide to compete - and they get to leverage their existing businesses to do so. If Insider's insider information is correct, this is a business that will either have to find a way to make money or hope that a major player decides to buy it. It is funny that market share is often considered by many to be a sign of success regardless of whether or not that market share is actually creating real value (i.e. profits). I've used this example before: an investor goes to the CEO and says "We're losing money on every product we sell. What are we going to do?" and the CEO responds "It's easy. We'll make it up on volume!" Market share != success Kean: exactly. There’s no apparent barrier to entry here besides capital. It has taken a significant amount of capital to get to 6% and now major players, like AT&T, can fairly easily decide to compete - and they get to leverage their existing businesses to do so.

If Insider’s insider information is correct, this is a business that will either have to find a way to make money or hope that a major player decides to buy it.

It is funny that market share is often considered by many to be a sign of success regardless of whether or not that market share is actually creating real value (i.e. profits). I’ve used this example before: an investor goes to the CEO and says “We’re losing money on every product we sell. What are we going to do?” and the CEO responds “It’s easy. We’ll make it up on volume!”

Market share != success

]]> By: KevinL. http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229034 KevinL. Thu, 15 Mar 2007 21:57:14 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1229034 To Chandra's comment - MerchantCircle has a partnership right now with Free 411. It's a good trade-off for a company like them or a coupon site, because they're looking for content, whereas we've got a ton of content looking for places to distribute. We have over 100,000 merchants right now, but my guess is, Free 411 doesn't always have a pizza ad for each region. That's why they've got to plug in whatever ad they have available in a certain region from a 'paying' client. To Chandra’s comment - MerchantCircle has a partnership right now with Free 411. It’s a good trade-off for a company like them or a coupon site, because they’re looking for content, whereas we’ve got a ton of content looking for places to distribute. We have over 100,000 merchants right now, but my guess is, Free 411 doesn’t always have a pizza ad for each region. That’s why they’ve got to plug in whatever ad they have available in a certain region from a ‘paying’ client.

]]> By: Felipe http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1228724 Felipe Thu, 15 Mar 2007 20:21:27 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1228724 Check out Zypsy, a 411 for shopping and directions. Zypsy provides better info because actual humans do the search for you, as opposed to Free 411 services where you're talking to a machine. http://www.zypsy.com Check out Zypsy, a 411 for shopping and directions. Zypsy provides better info because actual humans do the search for you, as opposed to Free 411 services where you’re talking to a machine.

http://www.zypsy.com

]]> By: Kean Smith http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1228577 Kean Smith Thu, 15 Mar 2007 19:37:09 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1228577 I think this is another instance in which a start-ups breakthrough can easily be duplicated and better distributed by an established concern. Once (if) the company becomes profitable, there is no technical or business hurdle to prevent other players from offering the same service. I forsee a company like Google, leveraging their engineering talent, established customer base (both advertisers and consumers), and their data set entering this segment with a 100% automated solution. I think this is another instance in which a start-ups breakthrough can easily be duplicated and better distributed by an established concern. Once (if) the company becomes profitable, there is no technical or business hurdle to prevent other players from offering the same service. I forsee a company like Google, leveraging their engineering talent, established customer base (both advertisers and consumers), and their data set entering this segment with a 100% automated solution.

]]> By: Eric Anderson http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1228562 Eric Anderson Thu, 15 Mar 2007 19:32:12 +0000 http://www.techcrunch.com/2007/03/15/1-800-free-411-has-6-market-share-of-us-411-market/#comment-1228562 My only problem with the service is that it won't automatically connect me. How annoying is it to write down (or try to memorize) the number. Let me hit a button and connect. It's like putting up a reference to a web page on the web but not making it a link. Just retarded. Plus like someone else said. The theory of targeted advertising is good but in practice I always get an ad that is not related to my query. This will just lead to advertisers not getting value for their money which will in the end drive them away. I like the concept of the service. The execution is just sub-par. My only problem with the service is that it won’t automatically connect me. How annoying is it to write down (or try to memorize) the number. Let me hit a button and connect. It’s like putting up a reference to a web page on the web but not making it a link. Just retarded.

Plus like someone else said. The theory of targeted advertising is good but in practice I always get an ad that is not related to my query. This will just lead to advertisers not getting value for their money which will in the end drive them away.

I like the concept of the service. The execution is just sub-par.

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