Free May Not Be Good Enough to Make Monitored Phone Calls Acceptable
Monday, September 24th, 2007A new start-up called Pudding Media is offering free VoIP (PC-based telephone calls) if users allow the company to listen in on their conversations and serve targeted ads based on keywords in the conversation.
Here’s how it works: The voice recognition software monitors the calls and based on what it hears, it will push the ads to the subscriber’s computer screen while he or she is still talking. A conversation about movies will result in ads for new films.
This one has a really tough road and I don’t think the odds are in its favor:
First, although consumers do flock to free web-based services, the concept of free VoIP calling is not new. Free, or nearly free, PC-phone calls are already available from dozens of companies, including Skype. The difference between 2 cents a minute and 0 cents a minute (for SkypeOut users) is almost negligible.
Secondly, for Pudding Media, being known as the VoIP provider with the most Big Brother tendencies puts it at a major disadvantage. So, except for people trying the service to check out the targeted ads (of which there will be many after today’s NYTimes article), users will be freaked out by the idea that someone (or in this case “something”) is listening in.
Pudding argues that their new technology is no different than that used by Google who scans in-boxes of G-mail users to tailor fit the ads they provide to them. But to most of us there’s a difference between written and spoken…we all know that most web activity is monitored in some way, yet anything that “listens” to voice communications feels very CIA-ish and way too close for comfort. Pudding says the keyword information is discarded after every call, but it will be up to consumers to decide whether or not that provides any reassurance. That’s a big stumbling block to get past.
And lastly, advertisers will be freaked out by freaked out consumers and the potential consumer backlash.
Google weathered the backlash when they launched the G-mail advertising technology, but they had street credibility already. Pudding is a start up. Much tougher position.