Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

The ROI of robocalls and why the bots keep calling

By | October 28, 2010, 9:01am PDT

Summary: It’s almost noon and I’ve received four political robocalls and hour since working hours began. Why do the robots call? There appears to be a return on investment there.

It’s almost noon and I’ve received four political robocalls an hour since working hours began. Why do the robots call? There appears to be a return on investment there.

Don’t laugh. You must be thinking: “What moron would vote based on a robo call?” It’s not about the vote rate as much as it is reaching some fool that will listen.

Pew Research in 2008 did some robocall research. It found that 81 percent of likely caucus voters in Iowa received a pre-recorded campaign call from your friendly neighborhood robot. In New Hampshire, 68 percent of likely voters in 2008 got a robocall. In Iowa, 44 percent of folks hung up. In New Hampshire, 46 percent usually hung up.

However, 35 percent of Iowa likely voters in 2008 usually listened. In New Hampshire, 19 percent usually listened.

A more recent survey had similar findings. In other words, robocalling is a lot like spam. You cast a wide net and if you hook a few dummies you have a solid return on your investment.

While academics may think those hit rates stink, they actually are pretty good. Why? Robocalls cost near nothing.

Do a Google on robocall services and you get a screen like this:


As you can see Google must be pretty damn happy about robocall text links.

But if you actually click on these sponsored links you see why robocalls are the plague that keeps giving. Let’s take the pricing of VoiceShot, which provides you with a do it yourself online call center. VoiceShot will charge you 12 cents for a successful call.

What’s a successful call? A successful call is any fool that stays on the line for 60 seconds. So let’s say you do 1 million robocalls. Of those calls, 300,000 jokers listen in for a minute. You just reached 300,000 for $36,000. Why wouldn’t you do robocalls?

And VoiceShot isn’t even the cheapest robocall service.

A company called Homeytel will do robocalls for you at less than a penny a call. Hell, anyone could do a robocall at those rates just to gripe about robocalls. Homeytel’s pitch goes like this:

WHAT DO DEMOCRATS, REPUBLICANS, LIBERTARIANS, AND THE TEA PARTY HAVE IN COMMON? They all use HomeyTel  voice broadcasting. Why? Because we offer the very best service plus you can exactly budget your campaigns. We have found that a 15-30 second message is more effective than a 60 second message, if the message is clear and timely. Short messages simply deliver more bang for the buck and if your voter list is clean you will realize substantial savings over a per minute usage charge. Most voter lists reach 70-90%.

NEW LOWER RATES! Due to higher usage we have been able to negotiate lower rates and we are passing the savings onto our customers.  Thank you loyal customers!

OUR MOST POPULAR PACKAGE NOW LOWER THAN EVER! 100,000 calls live and answering machine, 30-second message, 3 attempts, and up to 3 free campaigns for $1,695.00. (Add $25.00 setup for each campaign over three.  Add 10% for each 3 second increment over 30 seconds.)

Add it up and it’s obvious why robocalls keep happening. It’s cheap. And you may just be successful. Now this robocall ROI equation may change if all you have is a cell phone, but for now the low costs add up for pols.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

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Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: The ROI of robocalls and why the bots keep calling
tryagain23 9th Oct
Robocalls will end when people are so poor they no longer have phones to receive robocalls, which may be sooner than later thanks to these politicians. organic lotions
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They don't work.
sdakin@... 28th Oct 2010
Hi,

Green and Gerber (Yale) have studied political robocalls and they don't work.

More http://www.stoppoliticalcalls.org/ht/d/sp/i/23650/pid/23650

Shaun Dakin
StopPoliticalCalls.org
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Staff
@sdakin@... understood, but it's cheap enough that those fools will keep trying. Can't be worse than those mailings we get and don't look at.
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@Larry Dignan

Do you mean those glossy and expensive mailings paid for by special interest money that I consign to the trash compactor???? Such environmental waste!!!!

I know, we should insist on an `environmental impact charge` to be imposed on political campaigns that do not use re-cyclable materials in their mailings. OH, and make it VERY high on ALL political parties.
I use my answering machine to screen calls, too. The downside, if I understand the article, is that even though the robo call talks while my greeting is played I am considered one of the successful calls.
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I have a a 35 second long outgoing message on my voice mail, which for the most part is long enough to get the robo-caller to run their message (i.e. `talking over mine`), and actually leave NO message at about it is bank that website attacked from the site support from any soldier site to the light home page is great all.
I screen all my calls. Have been doing that for the last 3 years. Now I don't get robo calls or sales calls. Best phone move is to screen the message before picking up the phone.
Microsoft halts Zune HD Originals orders: Microsoft officials still have not said definitively
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did announce its cessation of its Zune HD Originals line. (The Originals were customized Zune HDs,
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Windows Phone, Zune devices and PCs, which continues to expand,? the site says.
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deliver one more version of its Zune HD player . Looks to me like the Softies have decided users
who want a small-form-factor media player from Microsoft are going to have to use their Windows Phones.
0 Votes
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That said, there does seem to be an MSE 2.1.1116.0 thats downloadable from third-party sites, though its not listed in Microsofts Download Center. The latest update works on Windows XP, ipad bag blog of best sutudeg community the modern education news and WIndows Vista and Windows 7.
@Larry Dignan is why it's ok for Microsoft to sue other companies for patent infringement but not ok for other companies to sue Microsoft for the same types of patent infringement. Considering you didn't say that and Donnie didn't say what you asserted, I guess we should read into your post as much as you read into his.
@Larry Dignan You ridicule MS for not "comming out with things people want" or make jokes about the products they do, and yet you turn around an claim that these people fired are "just victims"?
So what you are comming straight out to say is that MS should keep the people that put out products that nobody wants to buy, right?
I am basing this on all of your past, and recent posts, so tell us why MS should keep people around that you claim have failed the company?
@Larry Dignan Yeah, people love to repeat that "competition is good for users" mantra but it's not true when half of the players in a given market are phoning it in (so to speak.) The half-baked crap being dumped into the market by most of these companies will actually hurt users when they get suckered into buying them. At this point, there are only one or two phones I'd want to own. If there were indeed true competition, with a batch of companies truly trying to compete, not just dumping beta products into the bargain bins in the hopes of snagging the profits of 2-year contracts, then the consumer would benefit. As it stands, not so much.
Robocalls will end when people are so poor they no longer have phones to receive robocalls, which may be sooner than later thanks to these politicians. organic lotions
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@sdakin@...

ahh... they might work. robocalls from the candidate i last voted for increased my dislike for him. but this might not be the result desired by the candidate.
@BitBanger_USA So why not robocall seemingly from one candidate when you actually want to drive votes to another? The pitch could be deliberately weak or ill judged (you might know quite a bit about the likely recipient of the call based on their whereabouts).

Given how cheap it is, you could do this - especially if it happens "at arms length" with a little "deniability".
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RE: The ROI of robocalls and why the bots keep calling
instantcallblast Updated - 30th Nov 2010
@sdakin@...

Not from where I am standing. As a proud owner of a robocalling service, I put out over 1 million calls the week before the past elections. I looked at the results of every call blast. 80% of the calls I put out were answered and listened in its entirety. Who are you going to believe, some guys from Yale who don't own a robocall company, or someone who does? I would be happy to post my metrics.

@SavedbyGrace...
All you have to do is call your county Board of Elections and ask to have your number removed from your voter registration information card. It's that simple. However, if your number is already on a list sold to a local campaigner, it may take a few years before you are completely void of the process.

The writer of this article is 100% correct. Robocalls are here to stay because they are cheaper than the glossy literature that gets mailed to your house. It is also a more effective marketing tool. The literature I receive during election season goes straight into my recycling bin. How much did that cost a campaign to produce? How effective was the response? I think it is somewhere near the 3-5% mark. So it costs over $1 per piece of literature or a 3 cent robocall call?

In more rural/less populous states, these calls will be phased out because there isn't a need to make such an impact on a population. However, in more populated states like New York, campaigns couldn't survive without robocalls. The average City Council race in Long Island covers about 50,000 constituents easily. How does it make sense to spend campaign dollars? Therefore you see many less populous states proposing anti-robocall legislation than more populous. After all, most of those politicians are going to be customers.

Also, the gripers and the complainers may have a large voice on the Internet, but their actions of not voting for a candidate because they were rudely interrupted at dinner time, is less than 1% and marginal at best. As an active voter myself, am I really not going to vote for someone because they bothered me for 30 seconds? No. I will vote on his/her campaign platform. 1 out of 2 people don't vote in this country anyways. Does it really matter that Joe the Plumber didn't vote? Not with those figures. It has been my experience that the complainer doesn't vote, hasn't voted, or won't vote. In most cases, they registered for one election a long time ago and forgot about it.

What Mr. Dakin fails to mention is that he is a proponent of doing away with robocalls completely. That means Amber Alerts, Emergency notifications (tornado warnings), and even finding your lost pet. I find value in each of those uses because I might be a customer of each of them someday.

Instant Call Blast does provide political calling, but there are more robocall uses out that are beneficial to humankind and it would be unfair to lump them all together.

Anthony Morelle
President
Instant Call Blast
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So is there any way to be excluded from these nuisance calls, something similar, perhaps, to the no call list I put my number on for sales calls?
@SavedByGrace

NO, political and 'non-profit' calls were specifically exempted from the do not call registry.
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RE: The ROI of robocalls and why the bots keep calling
The Danger is Microsoft 28th Oct 2010
I screen all my calls. Have been doing that for the last 3 years. Now I don't get robo calls or sales calls. Best phone move is to screen the message before picking up the phone.
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@The Danger is Microsoft: thanks for the tip!
@The Danger is Microsoft

The best thing is to not have a number on any lists, haven't received sales/spam calls for over 10 years.
@bwalker How do you not have a number on the lists? Don't have a phone? How did I even get on one of those lists, anyway? I thought they just used the numbers in the phone book. Wait, that's it... you have an unlisted number, right? Does that work?
@bwalker

Doesn't matter if you're on a list in smaller towns and areas. They war dial. 483-0000, 483-0001, 483-0002, .... If you have a phone in that exchange, you get called.
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@The Danger is Microsoft

I have a a 35 second long outgoing message on my voice mail, which for the most part is long enough to get the robo-caller to run their message (i.e. `talking over mine`), and actually leave NO message at all.


(BTW - I LIKE your `handle`. M$ free for over 3 years.)
@fatman65535
I use my answering machine to screen calls, too. The downside, if I understand the article, is that even though the robo call talks while my greeting is played I am considered one of the successful calls.
@sboverie@ you may be considered a success but in reality they are paying for nothing. that is a success for us I think. I wonder how much it would cost to buy a robocall campaign to dial campaign offices telling them how much we hate their calls? it would tie up their precious phones for a bit.
Political offices are bought and paid for by the biggest bidder now, it needs to change. Congress and the rest of our government is owned by Wall street and big business.
@ron@...
We may be on the verge of becoming a plutarchy. The hurdles to run for office are high, campaign costs keep rising to the point that the only ones who can afford to run for office are people with way too much money. I have heard that all of the Senate and most of the House are filled with millionares of every political stripe.

The Supreme Court decison to allow unlimited spending by outside interests seems to be mixed. It certainly makes the Republican party sure that they can spend enough to win more seats and all that money being spent on TV, radio and other ads may be helping the economy. On the downside, it seems that the thinking is that the elections can be won by the highest bidder.

Election campaign reform needs to on the list of which ever party wins the majority; although I doubt that the congress critters will make any changes because they benefit too much.
@ron@... It's so true its sad. Our whole government is completely corrupt.
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RE: The ROI of robocalls and why the bots keep calling
zclayton2 Updated - 29th Oct 2010
@ron@... my idea for campaign reform has been to ban all advertising using a candidates name without their permission, and to ban all contributions to people that you can't vote for. also to eliminate all caps on contributions but to require full disclosure of the amount per contributor - no anonymous contributions. we'll soon see who is buying the vote.
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So what you really are saying is if everyone who were called should place the receiver on the desk for 60 to 90 seconds prior to hanging up it would cost them for every call... and the cost would likely become prohibitive enough to discourage them.

Let's all campaign to put all robo-calls on hold!
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Staff
@ghastly there's a nice grassroots suggestion wink
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@ghastly I like your thinking, but they are calling the work phone, so I can't do that and miss real business calls. What i think the results are, though, is that they annoy people who may otherwise be susceptible to sales calls so much that they choose never to buy anything from any sales calls. That is my policy. One evening at dinner, the sales call came, and , being perturbed, i told the caller that if she gave me her home phone and allowed me to call her at her dinner time, i would buy whatever she was selling. She called her supervisor, forgot to put me on hold , and I heard her call me the "B" word! Gasp! She was appalled that I would ask for her home number, and never got the concept that she had just done the same to me!Internet buying is nice and easy, no sales calls, and I am in control of what I find, where I find it, and how much i am willing to pay.
But, my questions is, why do the robocalls hang up when you answer the phone? Seems counterproductive to me!
@BettyLaverne

That's not the recorded voice robocall. That's the real buffoon robocall. The computer dials, you answer, it switches you to a real buffoon, while simultaneously displaying your info on their monitor. When you answer and there are no buffoons available to switch you to, it hangs up, putting you in the list to call again.
@ghastly Exactly what I just commented... I'm going to do it as well.
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@ghastly

Seems t hat way, doesn't it? I routinely set the phone down and just let them talk to the air. I figure I've wasted their time and maybe saved another person from getting the call. I know I wasted their time, which is enough for me.
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The true ROI measurement is if the person who listens for 60 seconds makes the decision to vote for the candidate based on the robocall. (Spam of any type is only profitable if someone buys something from the spammer.)

If my decision is on the edge, will a robocall sway my vote? If so, would I admit it? Without those variables, the ROI is merely a measure of who listens to robocalls. At our house, only the answering machine listens to robocalls--and the machine can't vote ... at least not yet.
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@maurene.grey@...

i wish i knew a way to back-charge robo-calls like a 900 number... sure i'll listen to a robo-call if i'm charging the caller $10/min to answer the phone wink
Place the robocall on hold or put the telephone aside and wait for the caller to hangup.

It hurts them more. The line gets used longer = need more time before making another call. It also increase the calling costs. It also give false data for their statistics.
Not practical on a cell phone where you can get charged on incomming calls.
I'm not joking. Not only am I not voting for the robo caller, I am encouraging others also not to vote for them. It's obnoxious.. but what do you expect from politicians? They're legal gangsters that act like school yard kids with brains the size of peas..
I'm not joking. Not only am I not voting for the robo caller, I am encouraging others also not to vote for them. It's obnoxious.. but what do you expect from politicians? They're legal gangsters that act like school yard kids with brains the size of peas..
They get the calling lists from the local Board of Elelections. You don't want the calls, Call the BOE and tell them to take your phone number off the list and don't give it out!

The last person who had my work Cell phone number registered it with the next county over BOE and 3 years later I was getting calls in October. Once I figured out it was that county I called and demanded the removal. Took a little work as I was not the "registered voter of that phone number" but I got them to remove the number and I've been political call free since.
Now having read this article, every time I receive a robo call, I'm going to wait for 60 seconds before hanging up in order for it to cost whoever had the robot call me. Thanks, I now have a way to get even.
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Generally, if I recognize a robo-call from caller ID, I just press TALK then immediately press END without even putting the phone to my ear. If I'm not sure, I listen for about 2 seconds to confirm the robo-call, and then end the call. I don't talk to, nor listen to computer calls.

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