Pudding Media, a new start-up, is making headlines with technology to target ads based on people’s phone conversations.  In return, users can make free VoIP calls through the company’s website.  The company’s voice recognition software picks out key words and displays contextual ads on the screen during the conversation.

To dispel any invasion of privacy fears Pudding Media is quick to point to their policy of not recording any calls and only delivering ads during the conversation itself.  The service is also targeted at young people who are more comfortable with releasing their personal information in return for valuable services. 

Pudding Media’s foray into voice based advertising is a continuation of a trend to make ads more relevant to users.  Google was the first by introducing ads linked to key words contained in email messages.  With audiences, especially young ones, time shifting through TV commercials and turning towards the internet for entertainment, companies are looking for new ways of getting their attention.  Providing free calls along with useful and relevant advertising should prove to be an effective way to do that.  For advertisers the pay-per-click model devised by Pudding Media ensures that their marketing dollars are also well spent.