Microsoft lines up click-to-call mobile ads

Microsoft plans to place advertising on MSN's Windows Live Search for Mobile service that will let users click on an ad to place a call for more information.

The software powerhouse said on Monday it is partnering with Ingenio to provide the embedded ads when mobile search requests are performed with Windows Live Search. An ad will be placed above the regular search results when mobile phone users are searching with Windows Live Search. Then users can click on the advert and make a phone call directly to whoever is advertising.

The database and technology used to serve the ads comes from Ingenio. Searching is free for users but the company charges advertisers for calls mobile users make when they click on a particular ad. Advertisers vie for the top spot in the list in an online auction, much as in other paid advertising models on regular online search sites, such as Google.

Ingenio has a similar deal with AOL, which has been using the service and technology since 2005 as part of its own mobile search offering.

Combining these types of click-to-call ads with mobile search makes sense because many people are likely using their mobile phones to search for local information they'll use immediately - finding the address and phone number of a nearby restaurant, for instance. Adding adverts to the mobile search is expected to generate new revenue for mobile operators and search companies offering the service.

Search on mobile handsets is heating up, as big names such as Google and Yahoo! launch new services. Last week, Yahoo! said it would add advertising to its mobile search tool in the UK and US, including the click-to-call ads.

Marguerite Reardon writes for CNET News.com