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How a crackdown on robocalls could help Google’s bottom line

It’s a lot harder to reach people by phone than it used to be. That’s good news for people who like peace of mind, but not so good for telemarketers. With the advent of “Do Not Call” registries and, more recently, the FCC’s crusade against robocalls, companies that make money selling things over the phone are feeling the pinch, but money spent on telemarketing needs to go somewhere.

In a research note today, analyst Michael Nathanson theorizes that Google could benefit handsomely from ad sales declines in non-media areas like telemarketing and direct mail. Very often, the advertising industry is framed as a battle between TV and digital—with Google and Facebook attracting the lion’s share of the latter. But dollars allocated to smaller advertising segments are increasingly up for grabs as tried-and-true methods (like calling someone during dinner) yield thinner returns. The FCC approved a plan to allow consumers to block robocalls last year, and tech companies like Google, Apple, and AT&T have agreed to help in the effort. 

“We believe growth in telemarketing will continue to slow, while direct response Internet advertising platforms like Google are likely to be key beneficiaries of the migration of these dollars,” Nathanson wrote.

[Image: MoffettNathanson]       CZ