Consumer behavior and preferences are changing rapidly in the $7.4 billion directory assistance (DA) market, according to both a recent comScore Networks study as well as internal data from Jingle Networks, Inc., operator of the 1-800-FREE411 free DA service. Jingle Networks today released figures illustrating that changing consumer preferences are driving extraordinary growth of the 1-800-FREE411 service less than one year after its debut.

comScore Networks conducted an online survey in June 2006 that was commissioned by Jingle Networks. The survey of 2,500 randomly selected respondents was sent via email invitation. The findings show that:

• 71% of consumers strongly believe that 411 services should be provided free of charge.

• Only 5% are satisfied with and do not mind paying for their 411 service.
• 74% limit their 411 usage due to cost factors.
• When asked what, if anything, they dislike about DA services, 65% selected “high cost.”
• 88% said they would probably or definitely use a free 411 service more frequently than a paid 411 service.
• More than 40% either do not know how much their mobile phone provider charges for DA or believe it is less than the actual fee.

comScore’s findings can be downloaded here.

In addition, the following data from Jingle Networks shows consumers are flocking to the first and largest ad-supported DA service.

• 1-800-FREE411 is now processing nearly three percent of all U.S. directory assistance calls.

• In August, 1-800-FREE411 processed more than 13 million calls made by more than four million consumers.
• Daily call volume has exceeded 500,000 calls.
• Jingle has processed more than 72 million calls since its introduction in September 2005.

Underscoring the consumer need for a free 411 service, the average cost of a 411 call has increased from 38 cents in 1995 to $1.10 in 2005, according to industry research firm The Pierz Group. In the past month, Cingular has announced plans to increase its 411 charges by 19 percent to $1.79, and Verizon, which currently charges between $0.46 and $1.25 per call in its region, has taken steps to decrease the number of complimentary 411 calls it is required to provide customers.

“It has become clear over the last several months that the directory assistance market is going through a period of swift and significant change, driven largely by the introduction of free services from companies like Jingle Networks,” said Kathleen Pierz, managing partner, The Pierz Group, LLC. “Jingle has taken a leadership position, and is expanding the total directory assistance market by increasing total call volumes and offering innovative, advertising-focused business models.”

“Clearly we’ve hit a chord by introducing a free-to-consumer 411 service. We’ve seen dramatic growth since day one and will be processing hundreds of millions of calls annually by next year,” said George Garrick, president and CEO of Jingle Networks. “We’ve also seen strong interest and adoption from advertisers looking to reach consumers in a highly targeted way when they are in ready-to-buy mode. Directory assistance is the only major medium in which consumers must pay to be put in touch with businesses they want to buy from; Jingle is changing the industry landscape by offering a free, advertiser-supported service which enables consumers to freely access information that they believe should be free.”