There has been lots of discussion about value-based pricing models in the directory industry but for the most part it has been just that, talk. One of the first companies in North America to go whole hog and test a new pricing model is a new entrant to the world of yellow pages publishing, CanWest Media works.

CanWest Global Communications Corp, the mother company, is Canada’s largest integrated media company owning television stations, specialty cable channels, 23 daily newspapers and a host of internet portals including the popular Canada.com URL.

CanWest has based its new directories on an innovative pay-per-call pricing model that provides call tracking for every display ad larger than an eighth of a page. Advertisers love it because they only pay for the leads the directory brings their business. The cost per lead is determined based on positioning and on industry research on conversion ratios per heading. On the outset of the contract a cap is set on what the yearly cost will be to achieve the necessary ROI.

It’s a gutsy move but preliminary results show this approach is paying off for advertisers in Ottawa. In several of the top headings the ads have paid for themselves in the first three months  and that is without full distribution.

One of the other keys to CanWest’s success is its ability to integrate the power of its local directories with the strength of its network of properties including online brands and classified sites, 23 daily newspapers, various local broadcast stations that support advertising sales and promote the directory usage.

Ecstatic with the results from its first directory CanWest is already pushing ahead with directories for Regina, Saskatoon, and Gatineau, Quebec. Future directories are likely in markets where they have newspaper properties.