Free Calling From GMAIL: Ringin’ The Register For Google?

Many people have speculated why Google is giving away free voice calls from Gmail. “SKYPE killer!” “A shot across the bow of Facebook!” “The beginning of the end of every non-Google social anything!”

But maybe it’s just more of the same from Google.

According to Google's First Quarter 2010 10-Q, 97% of revenue comes from advertising. No matter how you slice it, Google is in the advertising business, not the telephone business, or any other business for that matter.

By allowing people to make phone calls out of Gmail, is it possible Google is simply trying to get people to stare at their open Gmail web pages, filled with ads? Consider this:

Math Alert: Google's cost per minute of a phone call = 1.5 cents (assumption)
Google's average revenue per Adwords click = $3.00 (giant assumption, but probably not a bad one based on our experience).

That means Google is making money if you click on an ad more often than once for every 200 minutes you are on a call using outbound calling from Gmail.

A hug for anyone who just realized that Google is attempting to get your eyeballs on ad supported content wherever and whenever possible. Don’t be sad; it’s a fact of life that nothing is free.

Here’s more:
Consider another possible benefit ($$$) to Google in exchange for “free” calls from Gmail:

Let's say you are currently using a free Gmail account, but access your mail via POP or IMAP on your computer mail client (Outlook, Mac Mail, etc.) Now that you can make an occasional free call using Gmail, you might consider ditching the desktop client for the Gmail browser interface. What's that worth to Google? I'm guessing, a LOT!

More math:
I received 80 emails yesterday. I read them all via Mac Mail. If I had read them in Gmail, how many ads would I have seen? 50? 100? More? Let's say 50 to be conservative. How much revenue is that for Google? Assume an average ad impression generates 1 cent for Google (which is conservative from our experience). That’s 50 cents worth of revenue to Google, or about 30 minutes of outbound calling using Gmail calling.

So, if I spend less than 30 minutes a day on the phone and use Gmail, Google is cashing in on me, regardless of whether I click on an ad or not!

I’m guessing, someone at Google did this math and concluded a pitch to management with a big

CHA-CHING!

Smile and dial, Gmail users. (But, please keep your eyes on the screen while talking!)