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Research Reports & Briefs

Market Brief: Click-to-Talk and the Future of e-Commerce

November 2006 - 8 pages

Tim Deal - Senior Analyst, Broadband Advisory Services

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Click-to-talk (CTT) incorporates Voice over Internet Protocol (VoIP) technology into e-Commerce sites and Web portals, providing online shoppers with a way to immediately connect to sales or customer-service representatives. But will consumers embrace it? This report examines the potential impact that CTT communications will have on electronic commerce as the number of residential broadband connections expands. The analysis examines companies like eBay, Google and Amazon, all of whom are integrating CTT srvices into their Web sites. Five charts are included.
EXECUTIVE SUMMARY

FOUNDATION FOR VOIP-ENABLED E-COMMERCE

CLICK-TO-TALK INITIATIVES

VALUE AND PITFALLS
Benefits
Pitfalls/risks/threats

OUTLOOK AND CONCLUSION
Click-to-Talk Advertising Model Carries Big Risks, Pike & Fischer concludes in new report

Silver Spring, MD, October 24—Click-to-talk advertising, which Internet-based companies including Google and eBay are adopting as a customer service, could fail to take off with consumers because of potential technological constraints and concerns about privacy, Pike & Fischer, a telecom market research firm, concludes in a new report.

Click-to-talk (CTT) incorporates Voice over Internet Protocol (VoIP) technology into e-Commerce sites and Web portals, providing online shoppers with a way to immediately connect to sales or customer service representatives. Google and eBay, for example, plan to integrate "click-to-call" advertising features that leverage both Skype and Google Talk VoIP services.

But consumers’ comfort level with such services has yet to be demonstrated, P&F says in the report. In addition to consumer concerns about privacy and preferences for the anonymity of email, a lack of industry support and a common VoIP standard could inhibit customer confidence in CTT technology, the report points out.

“Click-to-talk technology could open up whole new areas of interactive broadband marketing by integrating popular forms of rich media advertising with a voice communications feature,” the report states. “Despite this, consumer behavior is one of the most difficult metrics to gauge, and as with many consumer-focused technologies, innovation may quickly become relegated to obscurity should consumers not adopt it in significant numbers.”
Tim Deal

Tim Deal serves as our Senior Analyst, with a special focus on broadband-enabled consumer electronics devices and on emerging mass market applications such as online video sharing and VoIP-optimized e-commerce. Tim has developed SWOT analyses on such products as the iPhone, the Apple TV service, and rich-media applications on such social networking sites as MySpace. Tim has been providing detailed and actionable competitive intelligence analysis to leading technology firms for more than seven years. In that time he has authored more than one hundred comprehensive syndicated reports and an equal number of custom financial models covering the computing, consumer electronics, digital media, and storage industries. Prior to his career in competitive intelligence, Tim served as a counterintelligence/human intelligence and force protection analyst with the United States Army. Tim lives in the Seacoast area of New Hampshire. Contact Tim at tdeal@pf.com.

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