Sensis to expand 'click to call' service

Author: Mark Jones
Date: 22/12/2005
Publication: The Financial Review
Section: Information
Page: 36

Sensis Interactive has caught the voice over internet protocol (VoIP) bug.

The Telstra division said it planned to extend its "click to call" service unveiled on December 1 with a new feature that connects potential customers to an advertiser via the internet with the click of a button.

Sensis faces mounting revenue and competition pressures at a time when free online directories such as Yellowikis.org have emerged to challenge the paid directory model. Yellowikis, similar to the popular Wikipedia online encyclopedia, encourages individuals to help update the free service.
Sensis' existing click-to-call service gives a person using Sensis directories like Yellow Pages and White Pages the ability to give their phone number to an advertiser as a sales lead.

Under the plans being hatched between Telstra and Sensis executives, online users will click a button next to a classified directory ad that will start a VoIP call between their computer and an advertiser.

VoIP services, such as those offered by Engin and Freshtel, connect computer users with regular telephone users via the internet.

While it's unlikely that the Sensis VoIP service will produce a revenue windfall on its own, it's a sign of the pressures facing the dominant directory company in as a result of new competition and aggressive internal growth plans.

Its most pressing challenge is responding to the demands of Telstra's chief executive, Sol Trujillo, who has charged it with increasing revenue to $3 billion by 2010, up from $1.7 billion in 2005.

Sensis Interactive general manager Robert Rath said the company's growth strategy hinged on forging tighter links between its network of services, which extend from the printed Yellow Pages and White Pages directories to websites including CitySearch, Trading Post, Whereis, Sensis and LinkMe. Sensis is also developing a wireless application protocol-based mobile service and has launched Sensis SMS.

Mr Rath said Sensis had started to introduce bundling deals for advertisers to further the strategy, although he conceded that such an approach could affect the profit margins at each of its directory properties. But business customers would be willing to pay premium prices because their advertisements would be subject to high volumes of online traffic. "When you are on a high-traffic site, your average cost per [sales lead] acquisition is actually much lower," he said.

Mr Rath did not offer more detail on the VoIP click-to-call service, but said Sensis was intent on testing new online services, such as Sensis Mobile, that did not have a commercial model.

But Sensis' long-held monopoly on directory services is also an opportunity for nimble start-ups.
A small collection of start-up commercial business directories, including Business Directories Australia (BDAu), aussie.com.au and business.com.au, have emerged with a view to exploiting one of Sensis' greatest weaknesses: unchallenged advertising prices.

In the case of BDAu, the Queensland-based directory business has taken advantage of legislation that permits commercial directory operators access to the Telstra-managed integrated public number database, available for access by commercial directory operators and emergency services.
BDAu proprietor Frank Maugeri said his operation aimed to undercut Sensis by 50 per cent or more. Sensis ads for popular categories could cost up to $1900, he said.